What Investing In Sneakers Means
You may think shoes are a strange thing to invest in, but the sneaker resale market continues to grow by leaps and bounds. Research firm Cowen estimates that the global sneaker resale market will reach $30 billion by 2030. As of July 2020, sneaker resale accounted for more than $2 billion in North America alone.
Sneakers have long been a part of fashion and culture. But it wasnt until the 1980s when Michael Jordan and Nike partnered to sell his signature Air Jordan brand shoes that people saw sneakers as something to be coveted, collected, and sold. By 2009, sneaker enthusiasts had founded Sneaker Con, an event for buying, selling, and trading sneakers. Since its founding, Sneaker Con has hosted events in more than 40 cities around the world.
The growth of the sneaker resale industry was fueled by websites like eBay offering a way to sell beyond local markets. The past decade has also seen the rise of several secondary sneaker resale businesses. Online marketplace GOAT Group launched in 2015 and received a $100 million investment from retail giant Foot Locker in 2019. It also formed a partnership with high-end consignment shop Flight Club to provide online and retail options to consumers.
StockX is another company thats changed the landscape of sneaker resale. Touted as the first stock exchange for things, the online sneaker resale site processed more than $7.5 million in trades during 2020 alone.
- Adidas Yeezy Boost
- Hoka One One
- Nike Air Force 1
How To Buy Sneakers In Bulk For Reselling
So, how have resellers figured out how to buy Jordans in bulk or how to buy Nike sneakers in bulk? If you want to turn your sneaker resale business into a real deal, you have to increase your sales and that hinges on quantity.
Some of the most valuable sneakers for resale in 2021 were going for over $10,000. So you can imagine the profit margins with a bulk of such hyped sneakers from luxury brands to the classics like Nike or Adidas.
You can try your luck placing orders with the same card on different websites that are releasing the sneakers youre after. It goes without saying that youll have to be super quick and order sizes strategically. You can also use jigging practices with this method, but with some sneakers selling out in seconds, this could be hard to do.
Another solution is using virtual credit cards, which can all be linked to the same credit card. Since you use a different number every time, you may just be able to buy multiple pairs with the same credit card.
Is It Worth Investing In Sneakers
Reselling sneakers requires hard work and success isnt guaranteed. If youre passionate about sneakers, it might be a worthwhile investment provided you work hard and learn the business. In this way, investing in sneakers is no different than investing in any other asset. And just like investing in the stock market, investing in sneakers is inherently risky and past performance cannot be considered a guarantee of future success.
Also Check: Do Tieks Stretch Out
How To Find Shoes To Buy And Sell
Before you can even begin finding shoes to buy and resell, you need to understand the market better.
Reselling shoes are similar to the stock market. There are pairs of shoes that dont start out too hot but eventually accumulate value later on. Conversely, some sneakers generate lots of attention only to fizzle out as time goes by.
Want even more step by step details on how to find great shoes you can sell for a profit? Check out the Hypemaster Playbook for a great course into the shoe reseller world.
To truly benefit from learning how to resell sneakers, you need to purchase products that are sold on the cheap but have lasting value in the long run. One way of doing so is by buying the sneaker on release day at retail prices, which is where they are at their most affordable.
However, instead of lining up to store for hours to buy them, you can quickly place your orders on Frenzy, a Shopify-owned app.
It will notify you of the release dates of the latest sneakers from the biggest brands. From there, you can place your orders and make a profit by reselling them. The goal of the app is to reduce that friction between retailers and consumers so both can seamlessly make transactions and make money faster.
However, new pairs of shoes come far and few in between. To make money in reselling shoes, you need to find pairs sold under reseller price so you can profit off them. But how can you know how much a pair of shoes cost?
Tools To Make Money Reselling Shoes
You can get started reselling shoes with a few dollars and a good thrift store find, but if you want to level up your game and make serious money, you need to invest in some tools and get a little technical. Learning how to use bots for sneaker reselling is slightly complicated but achievable, and the payoff can be huge.
Recommended Reading: Where Are Allbird Shoes Made
Have Multiple Payment Options
Some stores will even limit orders to one purchase per billing profile. To get around this restriction, you can use multiple payment cards if you have them. You can typically get free checking accounts that you can set up online.
Virtual credit cards are another good option and I highly recommend using them. In fact, I believe it is essential to have an account setup with Privacy and other providers like Resolut. VCCs give you the ability to have multiple cards linked to each bank account.
PayPal is another great option to use. Some stores will only take payment through PayPal. For those drops, you need to be logged into your account a few minutes before release. That way, you dont lose time having to manually log in when prompted.
PayPal even provides you with free debit cards. Essentially you can have a PayPal account tied to each bank account that you have setup.
Is Becoming A Sneaker Reseller The Right Side Hustle For Me
If youre a self-driven entrepreneur, you can make good money selling sneakers. Possibly even enough money to replace your 9-to-5 income if you hustle hard enough.
If youre going to build a business, its easier to put in the work if its something youre passionate about. If you enjoy sneakers as a fashion statement or consider yourself a sneakerhead, this side hustle could be a particularly good fit.
It can also be ideal for those who might already know they enjoy collectible industries. Even if the product is different, the experience of the work is similar. Its that same thrill from searching for a great deal, getting your hands on it and then raking in the profit.
Brynne Conroy is a contributor to The Penny Hoarder.
Don’t Miss: Are Tennis Shoes Good For Walking
Reasons To Resell Your Sneakers
How to Resell Sneakers to Make Lots of Money?
Heres an eye-popping statistic: The sneaker resale market has topped$1 billion in annual sales, according to StockX. It goes without saying theres a ton of money to be made in sneaker reselling. Of course, sneakerheads know it all too well. Ultra-limited releases can easily fetch double or triple their retail price on different reselling websites AKA when you cop some Ls on release day because you werent fully prepared! These days, plenty of budding entrepreneurs have joined in on the sneaker game, hoping to earn a living or builda sneaker reselling business. Youve probably heard the success proof and different stories its literally all over social media!
Didnt you hear about the 16-year-old KID who made more than a MILLION dollars reselling sneakers to celebs? How much you makin rn? Bet you it aint a million dollars. Selling sneakers is the perfect side hustle or even a full-time job to make so much more money right from the comfort of your home!
How to Resell Sneakers to Clear Up Some Storage Space?
So, you either gotta figure out how to find more sneaker storage space, buy a second house just for your sneakers, or start reselling sneakers on the aftermarket. This way youll be making more space and more money to buy MORE sneakers! Its like the perfect equation.
Nuff Said. Period.
Step 1 on How to Resell SneakersWatch the Market Like a Hawk!
Step 2 on Reselling SneakersCop Limited-Run Sneakers
More Copping Tips
Best Places To Resell Shoes
If you intend to sell used shoes locally, the best bet is to consider thrift stores around you. As discussed above, there are some benefits when you choose to sell locally. However, the bulk of the places you can resell your shoes are online. Hence, the list below shows you some of the best places to sell shoes online.
Read Also: Cleaning Hey Dudes
Buying Sneakers Like A Pro
How do I know what shoes to buy?
Once you build the general knowledge base, youll have a good gauge of what to buy in the present and future.
From knowing what shoes to buy, to the nitty gritty of shipping and how to scale the process to a full time income, this article will cover it all.
The past helps to shape the future, although new shoe models will emerge, much respect is paid to the OG classics, which are reliable targets for shoes to buy for resale.
History: Getting down with the OGs
Even though re-releases of OG models like the Air Jordan 11 Space Jam may not be as lucrative as brand new shoes like the Off White Air Jordans, your taste will bring you a long way when dealing with others who are deep in the culture who like to deal with those who are on their wavelength.
Success! Now check your email to confirm your subscription.
How will I know what to buy this month to make this kind of dough?
The sneaker game is dynamic, so you need to constantly be checking out news resources for drops. We update and our email list with all of the latest profitable drops that come out every month.
Building a long term sneaker business by going beyond the new hype releases
You cant just be a hype sniper who goes after the newest, hottest most expensive stuff if you really want to make a sustainable living selling sneakers.
Best Websites To Buy Bulk Wholesale Clothing For Resale
Running an online or physical clothing store can be a great way to make you decent money. Buying clothing in bulk to resell means running a retail clothing business, so in this case, the first thing you should do is have a passion for the retail clothing business and build up a strong plan.
Besides the perception of fashion items, you should also learn more about sourcing, marketing, retailing, and other important business concepts, as these will provide a reliable plan for your store business.
In this article, we are going to talk more about this business conceptsourcing. It depends on how and where you source your product, which is unignorable if you want to earn more profit margin.
Recommended Reading: Women’s Dress Shoes For Wide Feet
Some Common And Costly Mistakes
Although I had done my research, I was still in over my head and had a lot to learn. After my biggest month, I made some preventable mistakes that nearly caused me to lose everything I had earned.
First, I ended up with some fakes and it was a mess trying to get my money back from the seller or PayPal.
Nicks Notes: As you might expect with shoes that sell for $1000, theres a thriving black market for counterfeit sneakers.
The other issue I ran into was with my PayPal account itself. They werent used to me taking in such large amounts of money per month, so PayPal put a hold on my money. Since I relied on reinvesting that income into more inventory, that hold took me several months to recover from.
I think I could have avoided that if Id warned them in advance that I would be taking in as much money in a month that I used to take in in a year, but then again I had no idea that I would make so much money so quickly!
Fortunately, I made a recovery and have gathered more knowledge than if it had been smooth sailing from the very start.
Use Bots To Purchase Shoes Online
When a hyped sneaker is about to be released, resellers look to automated systems known as bots to get ahead of the competition.
The software extensions can even disguise internet browsers, allowing one person to purchase multiple pairs quickly.
This option isnt cheap not only do sellers need the upfront capital to buy the shoes, but the technology itself can cost thousands of dollars.
Recommended Reading: White Water Rafting Footwear
How To Name Your Sneaker Reseller Business
The first step to setting up your sneaker reseller business is determining what the name of it will be.
This can seem like a daunting task, but there are some things you should keep in mind. It is important to choose a name that represents your company well, and one that people will remember.
One you have chosen a name, you will want to register your business with your local licensing authority
How To Sell On Stockx: Secrets From A 7
As the sneaker resale industry continues turning ordinary people into millionaires, many are hungry to get in on the action and start selling on StockX.
It seems like a wise choice, as the market is predicted to swell to uncharted highs in the next few years.
But a growing field of hopeful sellers makes flipping shoes more competitive every day, leaving many wondering how to make money on StockX.
Recommended Reading: Discount Brand Shoes Dhgate
Yeezy Boost 350 Series
Yeezy Boost 350 series is a collection of shoes following seasonal releases. The brand has high demand and is worth investing in it. Yeezy Boost uses Primeknit technology from Adidas. It allows knitting sneakers on the upper part with continuous fabric. All brands in this series, such as Yeezy 350 Boost V2 Static Black, Yeezy Boost 350 V2 Beluga, Yeezy Boost 350 350 Turtledove, are flexible and breathable that maximizes comfort and bouncy soles.
Even though it was not the first series to include boost technology, it still helps cement the demand when it contains some elements of Adidas drops. The pricing varies for instance, the Yeezy Boost v2 sneaker costs $268.68 on Lyst.
This is the best-performing model and is worth investing into date. They have countless color brands that sell every time once released. They have started producing Yeezy Boost V2, and because of its popularity, it is still selling. When the resale is still high, we would recommend grabbing pairs and resale for a profit. However, be keen when copping this series and ensure its trademark R never touches the Adidas logo on its size tag. The grails are available on all retailers, including StockX.
How To Know Which Sneakers To Buy
Youd be shocked to realize that sneakers like this:
Sell for prices like this:
And look just like these!
How do you know the difference between shoes that go for nothing, and shoes that go for tons of money?The short answer is: experience and education.
Take time to look up websites like Hypebeast and High Snobiety to get a gauge of what kinds of shoes people pay big bucks for, and follow their latest news until you continue to get an understanding of this mysterious market.
To get a little more specific about which brands of shoes to buy, you should definitely stick primarily to Nike, with some Adidas on the side.Nike owns the Jordan and SB brands and Adidas owns the Yeezy brand, each of these sub-brands being the most popular and valuable on the resale aftermarket.
Another thing to look out for is celebrity sneaker collaborations.
One example is a Nike Retro Jordan collaboration with Travis Scott.
These go for a whopping $2000 on StockX.com, a top website for sneaker market data, and also a source for buying and reselling sneakers.
Since this is such a big market, there are many apps out there to support it, so lets dive into some of the best.
Recommended Reading: Can You Wash Hey Dude Insoles
Potential Scams / Lack Of Customer Protection
Ive used Kixify for about 4 years now and it was legit for the transactions I had in the past. I eventually began using StockX more because they have a higher chance of having the shoes I want, despite the high prices. Because of StockXs high prices, I went back to Kixify to find a better deal & was scammed out of my money. I purchased a pair of AJ1s and the resellers order under my account denied me access to the order details and tracking information. I reached out to the reseller, who refused to give me the tracking information directly & I reached out to Kixifys customer service & never heard back from them. I no longer trust Kixify nor believe them to be a legitimate platform to buy and resell sneakers. Kixify says they offer customer protection, but in reality they dont. Its not like StockX where they authenticate the products before delivering them to you. Kixify has zero protection for their buyers against fraudulent resellers. If youre looking for a safe way to enjoy your hunt for DS shoes, dont use Kixify. StockX may be high, but you get what you pay for. Quality over quantity.
Sell Your Shoes Online The Smart Way
There are so many great ways to sell shoes online that its hard to choose one, right?
You can always try one or two at a time and see which one works best for you.
In my opinion, consignment shops are the best. They are stores that sell secondhand items on behalf of the original owner, who receives a percentage of the selling price. Consignment stores give you a great opportunity to sell your used shoes and make money.
You wont make a ton of money, but its pretty good for shoes you probably would have donated anyway.
If you dont live in a big city and there is no consignment shop around, there is nothing to be worried about. You can still sell your stack of old shoes and other used items for top dollar online.
All you need is a good internet connection and a smartphone.
Good luck with selling shoes online and making some extra cash.
Read Also: How To Clean White Hey Dude Shoes