How To Start A Reselling Business For Sneakers
In recent years, the sneaker market has exploded into a billion-dollar industry, fueled by a passionate consumer base of “sneakerheads” who collect, trade, and resell sneakers like valuable commodities.
With rare releases often selling out in seconds only to resurface on the resale market at MUCH higher prices, the business of reselling sneakers seems pretty sweet.
If you’re interested in starting a sneaker reselling business then, this comprehensive guide will teach you what you need to know about starting and growing a successful sneaker reselling business.
Understanding the Sneaker Reselling Business
What is a Sneaker Reselling Business?
A sneaker reselling business is exactly as it sounds, purchasing sneakers at retail price or even below, and subsequently selling them for a profit on the secondary market.
This business can be conducted through various channels, including both online platforms and brick-and-mortar stores, so it’s perfect for anyone wanting to start a side-hustle.
The essence of this industry lies in leveraging your insider knowledge and expertise to identify coveted sneakers with limited availability or high demand before they are released to the public.
ng these sought-after sneakers directly from retailers or authorized distributors, resellers have the opportunity to secure them at their original retail price.
You’ll need deep knowledge about popular sneaker brands, collaborations between designers and celebrities, limited edition releases known as “drops,” and emerging fashion trends.
Successful sneaker entrepreneurs do their research on upcoming releases while closely monitoring changing consumer preferences in order to stay ahead of the curve.
But, a sneaker resale gig isn’t your only option, we’ve outlined the top 10 reselling business ideas here.
How Profitable is the Sneaker Business?
Like any business you start, profitability depends on several factors such as your initial investment, the time you dedicate, and your knowledge of the market.
However, with high-demand kicks like Yeezy’s or limited-edition Jordans often selling at over 200% profit, there’s significant earning potential.
Step 1: Getting Started
Identify your Target Market
Before you embark on building your reselling business for sneakers, it is crucial to identify and understand your target market.
You need a clear understanding of who your potential customers are, also known as an ICP – Ideal Customer Profile.
Then you can effectively tailor your inventory purchases and marketing strategies to meet their needs and preferences.
One key segment within the sneaker resale market consists of super sneaker fans who are constantly on the lookout for rare and highly sought-after shoes.
To cater to true sneakerheads, it is essential to stay up-to-date with the latest trends in sneaker culture, identifying which models hold significant appeal among enthusiasts.
Engaging with online communities such as Reddit forums or social media groups dedicated to sneakers can provide valuable insights into this niche market’s preferences.
On the other hand, there is also a substantial portion of potential customers who fall into the category of casual buyers seeking trendy kicks (i.e. me!)
Casual shoppers may not have extensive knowledge about shoes but still appreciate fashionable footwear choices that align with current trends.
Step 2: Choosing the Right Sneakers to Resell
To truly thrive in this competitive business, it is crucial to invest time and effort into researching which brands and models hold the highest demand among enthusiasts and collectors.
Researching popular brands and models will allow you to identify those coveted releases that consistently drive fervent excitement among sneaker enthusiasts.
Keeping up with release dates is paramount in this fast-paced industry. The sneaker resale market operates on a timeline dictated by limited-edition drops, exclusive collaborations, and special editions released by various brands throughout the year.
Moreover, tracking trends within the sneaker community allows you to adapt your inventory selection accordingly. Styles may shift over time as new designs gain popularity while others fade out of favour.
Step 3: Setting up Your Business Structure
Decide whether you want to operate as a sole proprietorship, partnership, or corporation. Consider factors like tax implications, legal liability, and administrative costs.
To be honest though, if you’re just getting started then focus on making your first sale.
If you’re based in the UK, you only have to register as self-employed or pay taxes if your business is earning over £1000 a year.
Don’t use the technical aspects of setting up a business to put you off your side hustle!
How much money do you need to start reselling sneakers?
You’ll likely need a couple hundred dollars or pounds to get started buying your first pair or two.
The initial investment can vary widely depending on your goals and strategy. You can start small by flipping a couple of pairs or go big by investing in dozens of high-demand sneakers.
Step 4: Where to Buy Sneakers for Reselling?
When it comes to starting and growing a reselling business, one of the key aspects is knowing where to source your inventory. In this comprehensive guide, we will explore various avenues that can help you secure the most sought-after sneakers for resale.
One reliable option is brand stores during releases. Many popular sneaker brands have their own flagship stores or authorized retailers where they launch limited-edition drops.
By being present at these releases, you can get your hands on exclusive sneakers before they hit the market.
Online retailers also offer a vast selection of sneakers for resellers. Platforms such as Nike’s SNKRS app, Adidas’ website, or other well-known sneaker-flipping sites provide opportunities to purchase in-demand styles online.
These platforms often employ raffles or timed releases to ensure fairness among buyers.
Sneaker conventions are thriving events within the reselling community and you can find them on forums like Reddit.
Attending these gatherings provides an opportunity not only to meet fellow enthusiasts but also to network with potential suppliers and discover unique pieces that might be difficult to find elsewhere.
Lastly, collaborating with other resellers can be mutually beneficial when sourcing inventory. Building relationships with established individuals who already have access to desirable stock opens up new avenues for finding sought-after sneakers at competitive prices.
Tips for Buying Sneakers at a Lower Cost
One strategy to consider when looking to buy sneakers at a lower cost is buying in bulk.
Purchasing larger quantities of sneakers from wholesalers or direct suppliers often allows resellers to secure discounts, resulting in significant savings.
This approach not only helps maximize profit margins but also provides the opportunity to diversify inventory and cater to different customer preferences.
In addition to buying in bulk, utilizing specialized tools like “bots” can be advantageous for resellers aiming to secure highly sought-after shoes online before they sell out.
These automated software programs are designed to swiftly navigate through multiple websites, detect product availability, and complete purchases at lightning speed. By leveraging bots, resellers can increase their chances of successfully acquiring limited edition releases or popular sneaker drops that tend to sell out within minutes.
However, it’s important for aspiring sneaker resellers to exercise caution when using bots as some platforms strictly prohibit their use due to concerns over unfair advantages and potential abuse by malicious actors.
Therefore, it is crucial for resellers to thoroughly research and understand the terms of service on each platform before implementing such tools.
Step 5: Pricing Your Sneakers
Your selling price should cover your costs (purchase price, transaction fees, shipping) and include your desired profit margin.
However, if we want to keep things simple, then a good rule of thumb is to look at your competitors and see what the going resale price is for each particular shoe depending on the condition.
Step 6: Selling the Sneakers
Where to Sell Your Sneakers
Popular platforms include eBay, Grailed, StockX, GOAT, and Depop. You could also consider
launching your own website or physical store.
Related: How To Sell More On Depop
Creating Effective Listings
Good product photos and detailed descriptions can significantly increase your chances of making a sale. Create a recognizable brand that stands out from competitors and appeals to your target market.
Building Customer Relationships
Offer excellent customer service to build repeat business and positive reviews.
This way, word will spread throughout the sneaker community and your business will grow and grow!
Turning Your Passion into Profits
If you’re passionate about sneakers, turning it into a business can be immensely rewarding – both financially and personally.
With sneaker culture showing no signs of slowing down, the future of the sneaker reselling business looks promising for those willing to invest time and effort into understanding this dynamic market.
Reselling sneakers is not just about flipping shoes for profit; it’s about understanding culture and serving a community of like-minded individuals who share your passion for sneakers.