In 2015, Chris Kaufman co-founded StockX, a groundbreaking global marketplace that has transformed how consumers buy and sell high-demand products, especially sneakers, streetwear, collectibles, and electronics. Serving as the chief creative officer, Kaufman played an instrumental role in the platform’s rapid growth, which now boasts over 30 million users and a staggering valuation of $3.8 billion.
StockX stands out in the ecommerce space by blending the mechanics of a traditional stock market with consumer goods. Users can place bids as buyers and asks as sellers, creating a system where trades clear at transparent market prices. An essential aspect of the marketplace ethos is the verification process; every product that does not ship directly from a seller is first inspected at StockX’s verification centers. This meticulous approach to trust has been crucial in establishing the platform’s credibility among both casual buyers and dedicated collectors.
The inception of StockX was influenced by two significant factors. Firstly, Josh Luber’s work on Campless highlighted a tangible, quantifiable market for rare sneakers lacking transparency and trust. Secondly, the founding team, including Kaufman, was captivated by the potential to create a “stock market of things” that could apply time-tested financial mechanisms like anonymous bids, real-time pricing, and historical data to the world of consumer goods.
Funding for StockX came not from grassroots efforts but through strategic backing within Dan Gilbert’s tech ecosystem in Detroit. This unique environment allowed for a blending of resources and capital, although an exact launch capital figure remains undisclosed. The initial round of public financing—$6 million raised in early 2017—signaled the start of a series of significant funding events. Over the years, StockX secured hundreds of millions in multiple rounds, including a notable $275 million Series E in 2020 and an additional $60 million in 2021, bringing the total funding to around $700 million.
Kaufman noted that StockX began generating revenue from day one, thanks to its transaction-fee marketplace model. However, it took about a year post-launch for the business to achieve consistently predictable monthly revenue. By 2017, StockX was on track to surpass $100 million in gross merchandise volume (GMV), foreshadowing significant earnings as the platform expanded beyond sneakers. By mid-2019, the platform reported monthly sales surpassing $100 million, leading to external estimates of approximately $15 million in monthly revenue.
The growth trajectory has continued unabated. While current revenue figures are not publicly disclosed, historical data points reveal that by 2020, StockX reported $1.8 billion in GMV and over $400 million in revenue. Recently, StockX reported over 50 million lifetime trades and 15 million buyers, with projections indicating continued growth, expected to surpass 60 million trades and 20 million buyers by early 2025.
In addition to marketplace growth, StockX has made significant strides in brand protection. In a recent year, the platform rejected over 370,000 counterfeit items, valued at about $74 million, underscoring its ongoing commitment to trust and authenticity.
Kaufman’s insights into building and scaling a successful marketplace reflect a key focus on user engagement. He emphasizes the importance of staying close to customers, leveraging real data to question assumptions, and fostering a culture that prioritizes open communication and transparency. He believes that by institutionalizing practices such as regular customer interaction and rapid iterative product development, businesses can better adapt to market needs and enhance their chances of achieving product-market fit.
Today, despite stepping back from his day-to-day role at StockX, Kaufman is committed to supporting women- and minority-owned startups, advising and investing in various early-stage businesses, while also sharing his experiences and lessons in his book, Empathy at Work.
