StockX released its first Brand Protection & Customer Trust Report, offering a view into the anti-counterfeiting and fraud prevention work the marketplace focused on in 2023.
StockX said the report covered key areas related to the company’s investments in product verification, brand protection relationships and its efforts to combat “bad actors.” The resale platform plans to release the report annually, providing further transparency into its work to protect 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, CEO of StockX. “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.”
The company reported that the StockX platform’s anchor has always been its robust verification program, which is used to fight fraud, curb counterfeiters, and deliver a consistent customer experience.
StockX verification experts look for indicators when physically analyzing products. In addition to checking for authenticity, they assess for sizing inconsistencies, missing accessories, box damage, defects, and signs of previous wear.
Since the company’s inception in 2016, StockX said its verification experts have reviewed more than 55 million items and turned away more than $600 million worth of products that failed to meet its verification requirements. Sneakers suspected of being fake accounted for about 13 percent, or $80 million. In 2023, the company protected buyers by rejecting over 325,000 products, collectively valued at over $82 million, because they did not meet StockX’s verification standards.
The company closed its Portland. OR authentication center last spring after opening a new center in Mexico in January 2023. Key highlights from StockX’s first Brand Protection & Customer Trust Report include:
- Enabling StockX’s workforce with technology
- Combating bad actors
- Holding fraudsters accountable
- Partnering with law enforcement
- Giving shoppers peace of mind
StockX said it has invested millions of dollars to keep its customers safe and fight the proliferation of counterfeit products. Through 2024 and beyond, the company said it plans to build on those investments with the increased application and use of technology, expanded brand relationships, and ongoing partnerships with law enforcement.
To read the full report with metrics and solutions, go here or click on the link below.
Images, charts and data courtesy StockX
