Inside Goats Plans To Merge Sneaker Resale And Retail
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The booming sneaker resale market is no longer just about flipping Jordans and Dunks. Sneaker resale marketplace Goat is thinking much bigger off the back of doubling its valuation last month to $3.7 billion, following a $195 million Series F funding round.
The ambitious aim is to develop Goat into the leading e-commerce destination for young, cool consumers to shop retail and resale at once across luxury, streetwear and sneakers.
Goat hit $2 billion in gross merchandise value over the last 12 months as consumers flocked to buy and sell authenticated sneakers and clothing as a hobby or side-hustle during the pandemic. The platform now has 30 million members and 600,000 sellers across the world.
The figures keep on escalating. The global sneaker resale market alone could be worth $30 billion by 2030 according to Cowen, and multiple platforms want a piece of the pie. Ebay partnered with SneakerCon in 2020 to step up its sneaker authentication services. Goats main competitor, StockX, which also operates on a third-party authenticator model and was recently valued at $3.8 billion, hit $1.8 billion in GMV in 2020.
The Goat app has the look and feel of a luxury retail site, with added features like AR try-on.
Some 80 per cent of Goats members are either Gen Z or millennial. Gen Z is the fastest growing demographic on the platform, points out chief brand officer Sen Sugano.
Sneaker Culture Now More Than Shoes
The sneaker world has evolved since it went mainstream three years ago, says YouTuber and sneakerhead Richie Le, who has made weekly videos on sneaker culture and fashion since 2016 and now has 1.1 million subscribers. Initially, sneakers were perceived as another commodity like baseball cards that had become easier to trade via platforms such as Goat and StockX.
Now, sneakerheads are focusing more on how to style their grails to show an understanding of the culture. Theres sneakerheads that buy shoes just to buy shoes, Le says, And then there’s a lot of guys that are like, I’m not that, so let me differentiate myself by letting you know I’m in the culture, I can hoop, I know how to style my sneakers.
Goat is aiming to serve this style-conscious sneakerhead. We think about bringing the greatest products together from the past, present and future. The idea is that you can buy the latest season and you can also find that archival Raf piece that you missed in 2003, all on one platform, Sugano says. Goat is also investing heavily in augmented reality to enable consumers to try on sneakers from their mobile devices and think about how to style them, wherever they are in the world.
Some 40 per cent of Goat users are women, with many attracted to its gender-neutral approach, Sugano says. What we saw was that women wanted access to mens styles, he explains. Goat also built a size-conversion feature to make it easier for women to find mens shoes that fit them.
The Importance Of A Globally Local Perspective
Despite big-scale plans for growth, Goat intends to retain a curated perspective. When you think of other marketplaces, it’s a bit of everything. Discovery is difficult because there’s a ton of products. But we’re a marketplace that’s providing a very retail-like experience, Sugano says.
Investment will go into new authentication facilities in Japan, China and Singapore to better serve a growing consumer base in Asia and provide faster delivery. These growing markets will also be nurtured with curated content. We have a point of view, says Lu. We carefully merchandise products to tell stories. We create local content that inspires and host annual community-driven events that engage.
Goat built a team in Shanghai in 2019 to deliver content and design assets that resonate in China, Sugano says. We are using a similar playbook as we look at additional markets in Asia Pacific. really key to our strategy.
The companys biannual magazine, Greatest, features talent from across the world to inspire a diverse range of users to aspire to be their greatest. The concept reflects the investor/entrepreneur mindset that drives Gen Z to resale. Cover stars have included Fear of Gods Jerry Lorenzo and Chinese singer-rapper Lexie Liu.
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Does Stockx Sell Fake
StockX did not share exactly how many fakes are caught by its team of authenticators, but Einhorn shared that StockX sees far fewer fakes than we once did, which is a direct result of our rigorous authentication process. Five years ago, StockX had a single authentication center with four dedicated authenticators.
The Top 5 Bestselling Retro Sneakers According To Goat
From TV shows to clothing , its clear that nostalgia is a big motivator when it comes to consumer preference. And whats old is new again for sneakers too. Kicks are big business in 2017 athletic footwear was about a $20 billion industry, and if you look around at peoples feet, you can see that retro kicks are a big part of that pie.
So why do people love retro sneaks? For that, we turn to a GOAT. Founded in 2015 in Los Angeles, GOAT is a mobile platform on which people safely buy and sell authentic new and used sneakers. In February, GOAT merged with boutique New York City sneaker store Flight Club to become the largest sneaker marketplace in the world, with a combined 11 million members.
Matt Cohen, GOATs VP of business development, says two types of consumers go for retros those who experienced the OG release first hand and newbies.
For older consumers, there is also a huge nostalgia factor associated with retro sneakers. Maybe they weren’t able to get that shoe before, and when they see it on the shelf again it brings back a wave of memories and emotions, said Cohen.
Shoes from the 80s and 90s fit in seamlessly with newer releases because they were designed and colored up in compelling ways, said Cohen.Seeing new colors come to life on classic styles can be just as exciting and impressive as the original release.
Top five bestsellers on GOAT
In that spirit, lets take a look at the top 5 bestselling sneakers on GOAT and theyre all Jordans:
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Shopping On Stockx Or Goat Read This Before Hitting That Buy Button
If you’ve been using StockX or GOAT for a while, you’ve likely sold & purchased a sneaker based on an offer . Much like buying a stock on Robinhood or buying cryptocurrency on Binance, there are prices that patient sellers are willing to sell at called asks, and prices that patient buyers are willing to purchase at called bids. Those unfamiliar with the are likely to make a purchase at the lowest asking price by clicking on the “buy now” button without considering the alternative of placing an offer. The decision between bid or buy could potentially save you hundreds of dollars!
In situations where there is a marginal difference between the highest offer and lowest asking price, you should be fine with just buying the sneaker at the asking price. It’s probably not worth the few extra dollars in savings to wait for a seller to fill your offer.
Usually, the spread is small for recent releases with lots of trade volume but increases for sneakers with higher prices and lower trade volume. For instance, if you were to pull the trigger on these Yeezy 500s at the lowest asking price you would be paying around $499 + fees as opposed to paying slightly over $381 + fees by placing an offer and having a seller fill it.
If you take a look at the order history for this particular shoe on StockX, you’ll find purchases at prices that fall in the ballpark of both the lowest asking price and the highest offer price.
Green – lowest asking priceRed – highest offer
Can You Sell Dirty Shoes On Goat
GOAT cleans and sells your worn shoes for you. With this concept, sneakerheads can sell their old sneakers in the best condition possible and give them a second life. Thanks to GOAT who will clean, photograph and sell them for you. For sneakers with a sale price of $350 or lower, your commission fee will be 30%.
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Better Business Bureau Rating
After reading all about the company, its important to actually check up on if they follow through with their promises.
GOAT has a B- rating with the Better Business Bureau but very low customer reviews. 52 people have left reviews on the site, resulting in an average of just a little over one star out of five.
There have been 165 complaints closed in the last three years, and 141 complaints closed in the last 12 months.
If you are interested in reading what BBB has to say about GOAT or the reviews people have left,.
Payment: Stockx Vs Goat
GOAT accepts payments only in US dollars, as per the time of writing. While StockX supports a total of four different currencies, including $ USD, $ AUD, $ CAD, and EUR and £ GBP. StockX accepts payment using both credit/debit cards and PayPal. GOAT accepts payments using credit/debit cards, PayPal plus Apple Pay, and .
For US residents, both services offer flexible payment options using Affirm. With Affirm you can buy a pair of sneakers then pay for them for over 3, 6, or 12 months slapped with interest on top. But GOAT also supports Afterpay, another flexible payment platform, which is a bit faster and lacks interest, unlike Affirm.
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Products Available: Stockx Vs Goat
As I had told you earlier, GOAT only deals with sneakers as per now, unlike StockX, which seems in pursuit of diversifying its portfolio. Another interesting fact about GOAT is that the platform resales both new and used sneakers. But StockX only deals with new sneakers.
With the availability of only new sneakers, prices will be a bit higher. However, you have a guarantee that you are adding a new pair of sneakers in your collection. On GOAT, you have the option to buy either new or used sneakers. And for safety reasons, all sneakers are inspected before they are shipped to a customer.
All Set To Get That Pair Of Jordans
Now that you know how and where to buy Jordans, youre all set for the Jumpman hype. The golden rule though? Never give up on that pair you want so much, and try to get them in any way you can! And if you want to stay up to date in sneaker news, make sure you keep it locked on NSBs blog. Godspeed
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Ease Of Use: Stockx Vs Goat
On the User interface, GOAT offers a better UI than what you will find on StockX. You can buy new or used sneakers on the go, and its a simple process that anyone can have a grasp for the first time. It is similar to any other buying process in other online stores. StockXs website is quite busy and can drive chills to a first-timer. There is this stock market like features like price buttons on the site that can confuse. However, this is precisely how StockX has marketed itself as a stock market of things. But there is a guide that could make things easier than they seem.
Shipping: Stockx Vs Goat
Because sneakers have to undergo a verification process, goods from a third-party reseller can be delayed a bit. GOAT assures that products will typically take between seven to ten business days to be shipped but the process is much faster sometimes. StockX is slower in shipping their products as compared to the GOAT and can take up to two weeks for the sneakers to reach the buyer. Plus, GOAT has an Instant Shipping feature that will have the company ship the already authenticated sneakers to you after placing your order.
GOAT charges $10 for shipping goods across the US and between $30 to $40 to other countries. StockX charges $13.95 for shipping in the US and between $30 to $40 in other parts of the world.
A handy feature that is available in GOAT is an Order Progress feature that lets you track the order throughout the entire process from the point of placing an order. Although a similar feature is available on StockX, it is not comprehensive as GOATs.
Both StockX and GOAT have their advantages and disadvantages as sneaker resale websites. However, some of these features can enable you to gauge which service is more appropriate to use as per your needs.
But in general, StockX seems to offer a better sneaker shopping experience than GOAT. StockXs order progress feature is more advanced and informative. Our staff recommends StockX for their rigid authentication checks, ease of use platform and easy returns!
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Stockx Vs Goat Fees Which Is Better
StockX and GOAT are both excellent online sneaker markets. On StockX, you can buy and sell accessories, streetwear, watches, and collectibles. GOAT only focuses on sneakers, and it is doing quite well.
StockX and GOAT are both very good, but what their differences? How do their fees compare for sellers? What about the shipping? If you want to know the answers to all of these questions, you are in the right place.
Read on for an in-depth comparison of the two sites.
The Goat Is The Goat With Customer Service
I placed an order with the GOAT, and once they received my product from the seller, they informed me that the box was damaged, and gave me options on how to resolve the issue. I spoke with one of their reps about my concerns. He informed me that everything had been authenticated, and was very helpful so that I could make an informed decision. Needless to say, I moved forward with my purchase because of their excellent customer service in helping me feel comfortable with my decision.
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Digital Innovation And Transformation
This decade brought new meaning to both the sneaker industry and the secondary market. Ten years ago, sneakers were seen as a subculture, a small group of enthusiasts and collectors, but has since become a global phenomenon, said Eddy Lu, CEO and co-founder of GOAT
GOAT is an online marketplace for sneaker and apparel evangelists , where sellers can list their high value, limited edition, or otherwise rare finds to purchase for buyers. GOAT stands for greatest of all time, a term often used in sports for incredible or legendary athletes. GOAT not only acts as a marketplace between buyers and sellers, but also verifies the authenticity of sneakers , and offers cleaning and refurbishing services for used sneakers sold on the platform. The sneaker industry has been particularly plagued with fake Yeezys and Jordans, which GOAT has managed to stomp out with their proprietary AI technology. An incredibly innovative company, GOAT has also used technology to allow for sneaker shoppers to virtually try on their shoes using augmented reality using a mobile phone app, so shoppers can see what the latest drop in kicks might actually look like on their feet.
GOAT, with its cult-like following, has certainly caught a culture wave and they are riding it well. But can they continue?
Goat App Review: Reliable & Legit Place To Buy & Sell Authentic Sneakers
by Helen Jarden – Last Updated May 6, 2019
This is a review of the GOAT app, an app for selling and buying authentic sneakers.
If youve ever been shopping for shoes online or in a mall, you probably know just how marked up a simple pair of sneakers can get.
TIME magazine reported that the cost of footwear in the U.S. rose 2.8% in 2015. According to a government study sourced in the article, this increase is likely due in part to the rising costs of leather. GOAT, however, can help you avoided those increased prices.
With this review, youll find out how you can avoid overpaying for nice shoes and even making money selling your old shoes!
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Brief Introduction: Stockx Vs Goat
StockX and GOAT emerged as sneaker resale sites online where you can easily buy your next sneakers without a hassle. Both platforms drop the risk of buying fake products or even physical scrambles that may be encountered at physical stores.
StockX was started in 2015, by Dan Gilbert, Greg Schwartz, Josh Luber and Chris Kaufman in pursuit of creating a sneaker resale market. Four years down the line, the platform now offers more than just sneakers. You can also buy handbags, watches, and streetwear.
GOAT was also founded in 2015, to solve a similar problem like StockX. A slight difference between the two is that GOAT remains as a sneaker-only resale site and sells no other extra products.
Goat Funding And Valuation
Initially, the company raised $7.6 billion in funding from Y combinator, Upfront Ventures, Andreessen Horowitz, and Reddit.
In 2017, GOAT merged with Flight Club and became the largest monopoly in the secondary sneaker marketplace. Despite the merger, the two brands operated independently, capturing different channels in the marketplace.
GOAT focused on web and mobile app sales, and Flight Club dominated the global retail and e-commerce market with its physical stores.
The GOAT group raised $60 million in funding through venture capital firms like Index Ventures, Webb Investment Network, Matrix Partners, Upfront Ventures, and Accel.
Although GOAT targets a niche market, its backed up by large investments. In 2019, Footlocker invested 100 million in GOAT, making it their largest investment in history.
A strategic investment aimed to create a seamless, frictionless experience for customers partaking in the secondary market. GOAT used the funding to scale operations and meet domestic and international demand. Footlocker leveraged GOATs technology to advance the sneaker buying experience.
GOAT has recently raised another $195 million in Series F financing, a massive round that values the company at $3.7 billion, according to sources familiar with the deal.
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