Dive Brief:
- After raising funds to enhance its platform and grow internationally, StockX has acquired Scout, an inventory management company, for an undisclosed sum, the company said in an email to Retail Dive. The deal is StockX's first acquisition.
- Qualifying StockX sellers will be able to access Scout's tech tools, including automaton, inventory management, distribution and pricing tools, for free. The acquisition is meant to "further streamline the selling experience on StockX and help customers around the world grow and scale their operations," according to a company press release.
- Scout's three co-founders and seven employees will join the StockX staff in product, engineering and account management positions. Scout will continue to operate as an independent service, so sellers may distribute their supply through multiple marketplaces.
Dive Insight:
StockX's acquisition of Scout heats up an already hot sneaker resale market.
The company decided to make the move to support sellers on its platform with more automation, inventory management, tracking and marketplace integration tools.
"StockX is fiercely committed to unlocking economic opportunity for our global community and this acquisition is one of many investments we’re making to ensure we deliver on that promise," StockX CEO Scott Cutler said in a statement.
The deal is part of StockX's efforts to enhance and expand its platform. Last December, the company raised $275 million in Series E funding, which it said it planned to use to kickstart its international growth, develop products and add more categories to its online marketplace. The company also opened authentication centers in Hong Kong, Toronto, and Portland, Oregon, in 2020.
But as StockX makes acquisitions and raises funds to enhance its platform, other established and emerging e-commerce competitors are racing to boost sneaker sales, too. Poshmark bought Suede One, an online shoe authentication company, for an undisclosed amount in its first acquisition last month. Meanwhile, eBay has been catering to sneaker fanatics by authenticating shoes sold for more than $100 and hosting sneaker-focused events, including launching an augmented reality Santa Sneaker Drop sweepstakes last year and showcasing celebrity sneaker collections this holiday season.
