Have you ever considered the possibility of a stock market that sells goods and not stocks? If you think this can only happen in your dream, then you are mistaken. StockX is an online platform for such transactions, and it is the first of its kind.
Since it is so unique, people still struggle to understand how it functions and many wonder if it is possible to cancel StockX orders once they are placed. We will try to answer all such questions in this article.
How was StockX founded?
Although today the platform allows buying and selling of multiple products such as electronics, handbags, and watches, it was initially founded in 2015 because of the opportunity that existed in the sneaker resale market: a market, which at the time, valued about one billion dollars per year. This is what the founder’s Josh Luber, Dan Gilbert, Chris Kaufman, and Greg Schwartz decided to en-cash upon.
The fact that the sneaker market was the largest unregulated, legal market in the world reflected that there was a need for a marketplace where buyers and sellers could interact and hence StockX was created.
StockX not only provides the two groups with a common platform but also helps prevent fraud. To ensure that the sale of fake products is not carried out, StockX authenticates every item received from the seller before delivering it to the buyer. Thus, it won’t be wrong to say that this medium acts as a middle ground between the purchasers and the sellers.
How does this platform operate?
StockX presents the buyers with 2 options to make a purchase;
- Buying on spot
- Making a bid
A bid is a depiction of how much the buyer is willing to pay for a particular product. Buyers can decide the duration for which their bid remains valid. As the time of expiry comes near, StockX sends the buyers a reminder via email. It is then upon the discretion of the individual to renew their bid or let it terminate.
All offers are listed in descending order on the page of the item. When the sellers define an “Ask” price that matches the enlisted bids, the highest bidder automatically gets the sale.
Although this process allows you to purchase a product within your budget, the drawback is that bidding may require you to wait till a seller asks for a price that falls under your range. For someone who needs an item urgently, buying on a spot option would be feasible. The “Buy Now” feature on the website allows one to purchase the product instantly. With this option, the buyer will have to compromise at the lowest mentioned Ask even if s/he thinks it is a bit overpriced.
When making a purchase, payment is not a hassle because PayPal as well as most credit cards are accepted by StockX.
Just like buyers, sellers also have 2 options on StockX;
- Selling instantly
- Setting an Ask price
Ask is a signal that the individual is willing to sell a certain product at a particular price. Asks by various sellers of an item are listed in ascending order on the product’s page. Just like the case is with a bid, one can set an expiry date for their Ask and as the duration comes towards an end, the seller receives a reminder via email, allowing him/her to renew the offer or let it expire.
If a buyer places a bid that aligns with your Ask while it is still valid, the sale will automatically be made. However, if another seller has placed an Ask that is comparatively lower than yours, the sale will be made to them and your Ask will remain pending, waiting for a matching bid.
If you do not want to wait, you can make the sale instantly via the “Sell Now” option which allows you to sell the item at the highest available bid. Though this might not be equal to the price you desire.
As a seller, you will have to wait for your payment till StockX verifies (authenticates) your product and ships it to the buyer.
Is it possible to cancel StockX orders?
The straightforward answer is “No”.
The first and foremost reason for this is that StockX wants to maintain its image as a reliable and credible platform. Thus, once you agree, you must abide by your word. This is what the platform refers to as “honoring the trade motto”.
The second reason is to avoid manipulation during the bidding process. For example, if one interested buyer bids a reasonable price for an item, another user of the platform may make a higher bid, thus causing the first person to raise their offer.
If cancellation was allowed, this other individual who might have been an agent of the seller could have aimed to raise the price to unfair levels and then cancel his/her order. This is something StockX seeks to discourage.
Therefore, it has established such a process that money is automatically deducted from the buyer’s account immediately after their bid is accepted. The seller is then required to send the product to the nearest StockX center within two working days.
Is there a possibility of an exception concerning cancellation?
It is highly unlikely that StockX makes an exception for canceling an order. However, if the buyer thinks that their reason is valid and strong enough, they may try approaching the support team either by filling an online form available on the website or by writing an email to the StockX management to explain their case.
In rare cases, where your reason might be considered authentic, and you are allowed a cancellation, you would still be charged a “flake fee”. Buyers who try to cancel the purchase without any approval might be suspended from using the platform.
Penalty for the seller if s/he does not fulfill a sale agreement?
If the seller does not ship the product to StockX once the Ask has been accepted, s/he would be charged a penalty which can be up to 15% of the value of the dishonored transaction. Sellers might even be banned from using the platform permanently or suspended temporarily.
These punishments may also be granted if sellers send fake products or those that are below quality or are already used.
Can products be returned/exchanged?
Just like order cancellations, StockX does not support returns or exchanges.
However, if a product is no longer desired by the buyer, s/he need not worry about the “no returns policy” or the restriction on order cancellation. One of the benefits of StockX is that the buyer can always resell the unwanted items.
Is there an exception with respect to returns?
The only exception with this regard is available to buyers residing in the UK or the European Union.
The UK Consumer Rights Act 2015 favors its nationals to return purchased products. Individuals are required to fill out the Withdrawal Contact Form in case they need to make a return. However, the consumers only have the right to withdraw till 14 days after the receipt of the product.
Are all products bought via StockX original?
The online marketplace is risky. Therefore, many fear the receipt of fake products via StockX, especially given the fact that returns and exchanges are not allowed. However, you might be pleased to find out that StockX is a legit website.
The quality and originality of goods are ensured by the authentication process. Furthermore, StockX does not even allow the sale of used products on its website. Every product delivered to the customers has to be brand new.
Penalty for sellers who ship fake products
Knowingly selling fake products would result in a person getting banned from StockX. Not only do sellers know this fact very well but are also aware that the products sent by them will be thoroughly examined before being delivered to the customer. Therefore, they do not usually try to sell fake products on StockX in the first place.
Thus, we conclude that shopping from StockX is worry-free. It’s a legitimate platform with its head office in Manhattan. It provides added security to buyers by holding on to sellers’ payments till the products are authenticated. Therefore, any unverified rumor about it should not be paid any heed to.