Inside StockX’s authentication center

We are a consumer goods Marketplace we Are an evolution of eBay all we do is Connect buyers and sellers who want to Buy something we've become the largest Marketplace in the world for sneakers And streetwear but the reason why is Because how we connect buyers and Sellers is the exact same way that the World's stock markets connect buyers and Sellers and there's a whole lot to that But at the core it's around the concept Of true market price so on stockx in the Same way you buy a share of stock you're Getting the true market price for that Product or that asset and that's what Stockx is this is the stockx Authentication Center which is actually Within the Quicken Loans data center This is either our fifth or sixth Different authentication Center here in Detroit the first was one guy at a desk Sitting next to me outside of Dan's Office right we're finally at a place Where we have 15 000 square foot Facility for the authentication process To happen and we do sneakers streetwear And Handbags here and everything that Comes in the morning processes out that Day so what kind of qualifications do You have to have to work here there's Many jobs here the authenticators are Sort of the most notable for any Authentication position I mean we could Theoretically teach anybody to do it but

You know usually it's someone that has To really love that product because you Know an authenticator can see a couple Hundred pairs of shoes a day you know And so you know a lot of times we find People that come out of retail maybe They worked at Foot Locker or you know Or maybe they were reselling on their Own it's usually people that love Sneakers So when I get this I take it from the Rack the first thing that I want to do Is look at the label and I want to Inspect the box to a 360 out of the box To make sure that it isn't messed up it Doesn't have any rips or holes in it Once I've done that take the lid off I Have an invoice in here that gives me Most of all the information that I need On here from there I will scan it on our Little scanner pop it on our screen what I need and from there I will take both Shoes out if you want to set them up Left and right because you want to make Sure that you have a left and the right Shoe not two rights not two left so once I set them side by side I do my 360 Inspection Once I've done my 360 inspection I want To go into my right shoe and do a more Detailed look into it what are you Looking for there's a bunch of different Things you can look for you look for Stitching you can look for to make sure

That the size of the Nike sign is right It just varies for different shoes so it Just depends on the shoe Once I've checked that I give it a quick Whip the reason I give it a whiff is Because some of these shoes are a lot Older and they have them in people home So you just want to make sure that it's Not feeling like people homes or if They're a smoker if they have pets or Anything like that you want to make sure That it smells like it would be from the Factory once everything is correct I Grab my authentication tag and I always Want to make sure that I tag the left Shoe once I tag the shoe I want to place It back in the Box Factory wrap it back Up like it should be and then I pass it To my processor what do you do when Something so we get a fake shoe um Typically some customers don't know that Their shoes are fake so what we do is we Just send it back to the customer and Let them know that their shoes aren't They What's next for stockx Yeah so the business grows in three ways We can continue to sell the same thing To more people but also to go to that Next customer into that retail customer So today stockx is certainly very well Known within the Sneakerhead community And and the sort of traditional resale Market but it's about going to that

Retail customer to get that person that Bought their last pair of shoes on on Footlocker or nike.com that never would Have tried to buy a pair of Jordans on On eBay three or four years ago so one It's that it's sell the same product to More people two is other product Categories we're starting to do this Already and what's happened organically Though is you get a lot of these Subcategories that then are basically Worthy of their own category to get Broken out Collectibles is the fifth Category and then we'll see what those Subcategories look like as we get into Things like you know additions where you Have some of these artists that they're Not creating toys but they are creating Something that has you know there's only 500 of them Daniel arstrom is an artist That has products that sell similar to Calls where they will sell it Immediately and then resell and then Maybe you're in traditional toys as well Like Star Wars and He-Man and GI Joe and That sort of thing so you run a sneaker Empire you still like sneakers yeah Sometimes I sometimes I think that I'm Sick of it yeah and then I end up down Like walking through the authentication Center looking at every pair of shoes And then I'll back be back back on Stockx and buy five more pairs I buy More sneakers today now than I ever did