In the past year, StockX confirmed it has rejected roughly $90 million worth of products that did not meet its verification standards. Among these rejected products are several high-profile sneaker releases.
In its latest report, titled “Big Facts: The Verification Report,” StockX offered a look into its review process, the reasons for rejecting a product and broke down the counterfeit activity it experienced during the past 12 months.
“I am proud of the global team we’ve built and our commitment to helping millions of customers secure the products they love at the right price,” StockX CEO Scott Cutler said in a statement. “Knowledge is power, and this report offers visibility into our verification process and our efforts to deliver a best-in-class experience to buyers and sellers around the world.”
The leading reasons a product was rejected in the past year, StockX said, are manufacturing defects (27 percent) and fake products (20 percent), followed by damaged box (13 percent), used product (13 percent), wrong product (12 percent), wrong size (11 percent) and other (4 percent). Specifically speaking to counterfeits, StockX said its authenticators stopped roughly $30 million worth of fake sneakers from trading on the platform.
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The top five counterfeit sneaker styles that StockX authenticators have seen most frequently in the last 12 months included looks from Nike, Jordan Brand and Yeezy. Leading the list is the Nike Dunk Low “Panda” from 2021, followed by the Adidas Yeezy Slide “Onyx,” the Travis Scott x Air Jordan 1 Low “Reverse Mocha,” the Air Jordan 1 High “Dark Mocha” and the restocked Adidas Yeezy Slide “Pure.”
“As bad actors continue to up their game, so does StockX,” StockX head of brand protection Paul Foley said in a statement. “We’ve made significant investments this year and we remain committed to evolving our use of technology, enhancing our systems, and employing industry experts in every corner of the world.”
Aside from sneakers, the other most faked products on the marketplace include the Fear of God Essentials Hoodie “Stretch Limo” in its apparel category and the Telfar Shopping Bag in medium black in its handbag category.
StockX said high-value products historically have been the most counterfeited, however its recent data showed that high-demand lower price point items are also frequently faked. For instance, the Nike Dunk Low “Panda” has an average resale price of less than $200.
Also in the report, StockX outlined the steps it has taken in the last 12 months that are expected to inform its future in verification. This includes the expanded use of machine learning, which the company said helps predict which products and people are high versus low risk, and ensures minor details are taken into consideration. Also, embedded technologies, such as RFID and QR codes, have been included into its verification process, which the company said provides another data point. Lastly, StockX mentioned its new “Buyer Promise” policy, which in short ensures if the company makes a mistake, it will make it right.
