In the report, StockX calls on brands to
work directly with secondary marketplaces to crack down on
counterfeiters
Since 2016, StockX verification experts
have reviewed more than 55 million items and turned away more than
$80 million worth of suspected fake
sneakers
DETROIT, April 18,
2024 /PRNewswire/ -- Current culture marketplace
StockX today released its first-ever Brand Protection &
Customer Trust Report, offering a view into the
anti-counterfeiting and fraud prevention work the
marketplace focused on in 2023. The report covers key areas related
to StockX's investments in product verification, brand protection
relationships, and its efforts to combat bad actors. The platform
plans to release the report annually to provide further
transparency into the work the company is doing to protect both
consumers and brands.
"One of our core values as an organization is to be a champion
for our customers by, amongst other things, staying on the cutting
edge of verification, investing in talent, constantly evolving our
technology and systems, and increasing transparency into the
process," said Scott Cutler, StockX
CEO. "This report points to how we've doubled down on that
commitment to the customer and on our efforts to work directly with
brands whenever we can. As the lines blur between resale and
retail, collaboration between the two means market growth that
delivers benefits for both sides and allows us to create a safer
ecosystem for everyone to trade what they love."
Since its inception, the StockX platform has been anchored by a
robust verification program designed to fight fraud,
curb counterfeiters, and deliver a consistent customer experience.
StockX verification experts look for a range of indicators when
physically analyzing products. In addition to checking for
authenticity, verification experts assess for sizing
inconsistencies, missing accessories, box damage, defects, and
signs of previous wear. Since the company's inception in 2016,
StockX verification experts have reviewed more than 55 million
items and turned away more than $600
million worth of products that failed to meet the company's
verification requirements. Sneakers that were suspected to be fake
accounted for about 13% – or $80
million – of that total. In 2023 alone, the company
protected buyers by rejecting more than 325,000 products —
collectively valued at more than $82
million — because they didn't meet StockX's verification
standards.
Key highlights from StockX's first-ever Brand Protection
& Customer Trust Report include:
Enabling StockX's workforce with technology: StockX's
three-pronged approach to verification combines high-touch human
identification, expert knowledge, and the latest technology. In
December 2022 the company integrated
Radio Frequency Identification (RFID) scanning into its
verification process. StockX has built a database leveraging the
global RFID standards established by GS1, the industry governing
organization. When an RFID tag is scanned, if it fails StockX's
RFID process, it's flagged as having a higher risk of being
counterfeit. Since rolling out the program, StockX has scanned more
than 6 million RFID labels upon receipt. Tens of thousands
of those items were flagged and ultimately failed verification due
to RFID and other inconsistencies. As a result, numerous customers
were protected from receiving products that fell short of StockX's
verification standards.
Combating bad actors: The company continues to develop
new processes and partner with industry leaders to proactively
block bad actors from defrauding shoppers on its platform. In 2023
StockX unveiled a new fraud review process for
sellers. Before a seller places an ask, StockX now uses advanced
Machine Learning models as well as expert third-party
fraud models to analyze hundreds of user and
transaction data points and determine if the ask should be allowed
on the marketplace. This key check helps protect buyers and
legitimate sellers from fraudsters. In 2023 alone, StockX blocked
nearly 850,000 bad asks from being added to the marketplace
and suspended over 9,000 suspected fraudulent sellers before
their asks could be added.
Holding fraudsters accountable: StockX is leveraging
technology to track and hold bad actors accountable through account
suspension. To assess consumer behaviors, the company now employs
advanced Machine Learning fraud modeling and detection
techniques to monitor account activity and customer profiles. One
specific detection technique StockX has ramped up in the last year
is tracking malicious bot activity at the point of log-in and
across the full user journey. Collectively, these tools help
protect accounts from unauthorized access and allow StockX to
suspend accounts engaging in fraudulent activity. In 2023, on
average, StockX automatically suspended more than 250
accounts every week for identified fraudulent behavior. The company
also enforces automatic suspensions for sellers who sell high
amounts of products that fail StockX's verification process as well
as sellers who reach excessive levels of order cancellation due to
failure to ship products.
Partnering with law enforcement: When necessary, StockX
has partnered with law enforcement and works with authorities at
the local, state, and federal levels to support knowledge sharing
and active investigations. In late 2022, following a known robbery
at a brand's distribution center, StockX took proactive measures to
temporarily halt the trading of sneakers that were directly
connected to the crime in question. In December 2023, the company also worked with state
agents to help carry out a significant seizure of counterfeit
products in Michigan. These
public-private relationships have provided valuable data and
repeatedly resulted in favorable conclusions to complex
investigations.
Giving shoppers peace of mind: Although StockX has always
provided safeguards for its buyers, in early 2023 the company
unveiled the StockX Buyer Promise, which provided a new streamlined
process in the unlikely event that it makes a mistake. Since
launching the policy, StockX has reviewed claims from customers in
over 100 countries and territories. While approved claims
represented less than 0.3% of total StockX trades in 2023, the
company was able to provide meaningful support to buyers around the
world by issuing full or partial refunds.
StockX has invested millions of dollars to keep its customers
safe and fight the proliferation of counterfeit products. Through
2024 and beyond, the company plans to build on those investments
with the increased application and use of technology, expanded
brand relationships, and ongoing partnerships with law
enforcement.
To view the full report, visit
https://stockx.com/about/sx-market-insights/brand-protection-customer-trust-report-2024.
About StockX
StockX is proud to be a
Detroit-based technology leader
focused on the large and growing online market for sneakers,
apparel and accessories, electronics, collectibles, and trading
cards. StockX's powerful platform connects buyers and
sellers of high-demand consumer goods from around the world using
dynamic pricing mechanics. This approach affords access and market
visibility powered by real-time data that empowers buyers and
sellers to determine and transact based on market value. The
StockX platform features hundreds of brands across verticals
including Jordan Brand,
adidas, Nike, Supreme, BAPE, Off-White,
Louis Vuitton, and Gucci; collectibles from artists
including KAWS and Takashi Murakami; and electronics from
industry-leading manufacturers Sony, Microsoft,
Nvidia, and Apple. Launched in 2016, StockX
employs over 1,000 people across offices and verification
centers around the world. Learn more at
www.stockx.com.
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