Stadium Goods is looking to strengthen its relationship with consignors through its latest launch in an effort to make mass resale at lower prices more accessible to the sneaker community.
The sneaker and streetwear resale platform has unveiled “Source by Stadium Goods,” a new-to-market proprietary platform that allows consignors to buy and sell in bulk.
According to Stadium Goods, its new Source platform will facilitate bulk commodities trading to the sneaker aftermarket and will allow consignors to acquire and move products in “hands-free” bundles without ever having to physically touch their inventory.
What’s more, Stadium Goods added that buyers who previously were sourcing one pair at a time can now benefit from the margin opportunity that comes with buying at scale, along with identifying and capitalizing on market inefficiencies and blindspots.
Engineered by Stadium Goods’ in-house team of product designers, Source is a part of the its new consignor experience, StadiumSupply. Among the new experience’s offering is a new mobile app that features a number of fresh features, including the ability to scan products directly into the seller portal, up-to-the-minute inventory tracking and pricing data to help consignors stay on top of the market, increase profitability and improve inventory turn. StadiumSupply also offers a formalized white-glove service that offers its top-selling accounts customized account management, reporting, and strategic support.
For Laura Sartor, chief product and strategy officer at Stadium Goods, this new launch will help Stadium Goods become a “true business partner” to its consignors as it looks to help its consignors find ways to grow their businesses. “We’ve been live for a little over a month now and reaction has been great,” Sartor told FN. “We’ve seen great traction with the product listed through Source, which is seeing the same sell-through rate as product that would arrive to us by typical consignment.”
These results can be further validated through early numbers released by Stadium Goods this week. According to the resale platform, a select group of consignors who participated in Source’s beta launch sold out of all their listings within the first hour, with an average order value of $1,100. The highest priced bundle sold so far was $10,000, the reseller said. Further, Stadium Goods reported that Source buyers are reporting an approximate return of 20% of their inventory investment.
“The goal with this launch is to really give access to a broader set of consignors — not just the big guys — who may want to get into the business of consigning sneakers as more than just a side hustle,” added Sartor.
This new platform comes as the sneaker resale market has grown into $6 billion global industry, according to a 2019 report from market research firm Cowen. In the report, the firm estimated that the global sneaker resale market will reach $30 billion by 2030, and the non-U.S. sneaker resale market will reach $19 billion.
Driven in large part by a consumer shift to a sustainability ethos, the entire secondhand market is poised to more than double in size to $77 billion over the next five years, according to ThredUp’s 2021 Resale Report released last summer.
Over the past couple of years, an increasing number of major retail firms and brands have entered the resale business through a variety of means. Crocs, Adidas, Macy’s and JCPenney, for instance, have forged partnerships with ThredUp, while Neiman Marcus took a minority stake in Fashionphile in 2019.
More recently, Pacsun and Target has inked deals with ThredUp to launch resale, while Steve Madden and Dolce Vita have partnered with recommerce and circular tech leader Recurate on peer-to-peer resale marketplaces.