Walmart Teams With StockX To Steal eBay's Sneaker Thunder In Pre-owned Expansion Push
Walmart is taking an unusual approach to fast track pre-owned expansion into sneakers and streetwear with StockX partnership bringing hot drops to the marketplace.
The deal will offer dozens of pre-verified shoes ranging from Nike Inc.’s Air Jordans and collaborations with Travis Scott to those from New Balance Athletics Inc. and Asics Corp available on Walmart’s website next week with StockX fulfilling and verifying the products, according to Bloomberg.
Jaewon Kang
Shoppers “are looking for this full spectrum of products from Walmart,” whether that’s staples or collectible items, Mosser said, adding that Walmart is experiencing healthy demand for coveted sneakers.
The partnership — the first between Walmart and StockX — is part of the retailer’s efforts to beef up its online business to grab more spending from Amazon.com Inc. and other retail giants. Walmart said last week that it will expand the assortment on its marketplace of third-party vendors to include pre-owned and collectible products, building on its offering of refurbished electronics.
For StockX, it marks its first third-party platform deal, Chief Executive Officer Scott Cutler said in an interview. The Walmart deal will help StockX reach a new consumer base, including customers who may be unfamiliar with the brand, he said.
The 800 pound gorilla in the room appears to be that "other retail giants" most assuredly means eBay - a company for whom both Walmart Marketplace VP and Category Lead Michael Mosser and StockX CEO Scott Cutler worked in 2019.
Cutler (who joined eBay in 2015 as President of their StubHub subsidiary before being promoted to VP eBay Americas in 2017) left in February 2019 only to "suddenly" take on the CEO job at rival StockX a few months later, taking a chunk of eBay's sneaker business with him in the process.
While StockX played it off at the time that they had "poached" Cutler from eBay, the reality appeared to be that then eBay CEO Devin Wenig allowed Cutler to engage/consult with StockX while still a company officer.
In fact, both StockX founder Josh Luber and Cutler publicly gushed to media at the time about their long friendship since the site was launched in 2016 and that Cutler had been a "trusted advisor" since the beginning.
Grace Turner
“Scott and I met just two days after StockX went live,” says Luber. “His extraordinary background mirrors the unique business model we have built at StockX. He understood the power of a stock market of things and quickly became a friend and trusted advisor.
Over the three years that followed, as the business scaled rapidly, Greg (Schwartz, StockX co-founder and COO) and I had the idea that Scott might one day be the perfect CEO to take us to the next level. Then the stars aligned – the growth continued, we added three world-class investors to our team, and Scott became available. We weren’t looking for a new CEO, but this was a no-brainer.”...
...“I have known the company and the management team since the beginning and have been impressed by its unique market model in e-commerce and dramatic growth. StockX is revolutionizing e-commerce,” says Cutler.
As savvy scrutineer unsuckEBAY put it at the time, StockX's claims about the situation were more than a little misleading.
Mosser was eBay Head of Fashion, Home and Sporting Goods, Merchant Development from 2010-2015 then promoted to General Manager, Lifestyle, Media, Toys before a short stint at BorderX Lab and then landing at Walmart in 2021.
Sneakers have been a lynchpin category for current eBay CEO Jamie Iannone's "high value enthusiast buyer strategy" underscored by the acquisition of Sneaker Con's authentication business in 2021, with eBay desperately trying to take back market share that Cutler had taken with him to StockX.
Getting into physical labor-centric warehouse authentication operations has been a massive step change for eBay - one that has come along with overhead, expenses and labor relations issues the company had not previously encountered in their once asset-light business model.
Liz Morton
The moves comes as Walmart looks like move into eBay's territory even further, recently announcing Walmart Resold to allow third party sellers to list pre-owned items on the site - with a specific focus on collectibles.
Liz Morton
A new dedicated collector shop, allow sellers to offer pre-orders of sought after collectibles and adding pre-owned conditions for collectibles sold in the Resold at Walmart storefront.
Eligible sellers can receive 0% commission fees through Oct. 31 in Toys (Figures, Dolls, Trains, Plushies, Games, LEGO, Funko, Diecast Cars & Hot Wheels); Media & Music (Movies, Vinyl, Music, SteelBooks, Musical Instruments & Entertainment Replicas); Trading Cards; Comic Books & Books; Sports Memorabilia; and Coins categories.
In addition to the 0% fee promotions, Walmart offers collectibles sellers the following perks:
- Flexible return policy: Choose between accepting: no returns, a 15-day return with sealed policy, or our standard 30-day Walmart return policy.
- Ability to offer preorders: Build the anticipation around a new drop by offering pre-orders for your products.
- New grading system: List trading cards and comic books with new, graded condition options coming soon.
- Sell pre-owned: Collectibles come in all conditions. Let your customers know that your products are vintage and pre-loved, making them one-of-a-kind.
Walmart's foray into the trading cards and collectibles market comes as no surprise as Bob Means left his position leading this category at eBay last year to join Walmart as General Manager Electronics, Toys & Seasonal.
Liz Morton
Means' official title was Vertical Merchandise Director but most people knew him as the face of eBay's trading cards, toys, and collectibles efforts, often appearing at industry events and a frequent guest on hobby related podcasts and blogs.
He was also the point man for the eBay Vault (since sold to PSA/Collectors Universe as part of eBay's deal to acquire Goldin Auctions) and eBay Live livestream shopping initiatives.
eBay has clearly taken their off the ball, leaving plenty of room for small and large competitors alike to chip away at the increasingly shrinking "retail giant."
What do you think of the Walmart StockX partnership? Let us know in the comments below!
