StockX has recently shared its inaugural Brand Protection & Customer Trust Report, revealing extensive details about its ongoing battle against counterfeit products and fraudulent activities.
Since its establishment in 2016, StockX has reviewed over 55 million items and has grown to be one of the largest resale platforms on the planet. A staggering $600 million of products have been rejected for failing to meet the company's stringent standards, with fake sneakers making up approximately $80 million. In the last 12 months, only 19% of the products rejected by StockX were suspected to be fake, with most products being turned away due to being in used condition.
However, there have been plenty of hiccups along the way. There have been multiple instances where the brand has been called out by customers for selling fake products, rejecting legitimate products, and has been embroiled in multiple scandals over the years. This ranges from a data breach that exposed more thaAnn 6.8 million records. Even with all of this, and an ongoing lawsuit with Nike, StockX is a legitimate platform to buy and sell products.
StockX's 2023 Brand Protection & Customer Trust Report highlights its commitment to enhancing customer trust and ensuring product authenticity. Scott Cutler, CEO of StockX, emphasized the company's focus on staying at the cutting edge of verification technology and increasing transparency in its processes. "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," Cutler stated.
How StockX Prevents Fake Products
One of the new methods StockX implemented in its anti-counterfeit efforts in 2023 was RFID integration technology. This addition has bolstered the company’s ability to authenticate products quickly and accurately. Since the technology was integrated, StockX has scanned over 6 million RFID labels. The items flagged during this process underwent further scrutiny, significantly reducing the risk of counterfeit products slipping through the cracks.
In its ongoing battle against fraud, StockX has developed and utilized advanced Machine Learning (ML) models that analyze hundreds of user and transaction data points to identify potentially fraudulent behavior. In 2023 alone, these models helped prevent nearly 850,000 suspicious listing attempts on the marketplace.
StockX has also targeted those trying to send fake products through its platform. The company implemented stringent policies that automatically suspend accounts exhibiting fraudulent behavior, such as those selling large quantities of products that fail verification or those exhibiting abnormal cancellation rates. On average, over 250 accounts were suspended weekly in 2023, a testament to the platform's commitment to maintaining a safe trading environment.
Law enforcement has been crucial in tracing and seizing counterfeit products, as seen in recent times with $5 million in stolen Nike products, and StockX has helped in some of these cases. The company has supported numerous investigations, leveraging its internal data and technology to provide essential leads. These partnerships have aided in immediate case resolutions and helped set up a framework for ongoing cooperation between private entities and public authorities.
In early 2023, the company introduced the StockX Buyer Promise to provide a safety net for consumers, ensuring they are protected against rare instances of oversight. Approved claims only account for 0.3% of the total trades on the platform in 2023. Still, the company was able to provide meaningful support to buyers around the world by issuing full or partial refunds.
Looking ahead, StockX is not resting on its laurels. The company plans to enhance its verification processes further and expand its technological arsenal. This practice includes the potential expansion of RFID technology, deeper integration of ML models for fraud detection, and more robust partnerships with brands and law enforcement. You can view the full report from StockX here.
Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
