The global sneaker resale market is a multi-billion dollar industry. Its premise is straightforward: acquire in-demand sneakers and sell them for a profit. This blend of cultural passion and financial opportunity makes sneaker reselling an intriguing field for aspiring entrepreneurs.
Understanding the Sneaker Resale Market
The sneaker resale market operates on the economic principle of supply and demand. Major brands release certain sneakers in limited quantities, creating scarcity, while general release shoes are widely available. This difference in availability is a primary driver of a sneaker’s value on the secondary market. Limited-edition collaborations are often the most sought-after, commanding high prices due to their rarity.
Understanding the market’s language is part of the process. “Deadstock” refers to a brand new, unworn pair with its original packaging. “OG” stands for “original,” referring to the first release of a shoe model, while a “retro” is a subsequent re-release. A “colorway” is the specific combination of colors on a sneaker.
“Bots” are software programs resellers use to purchase limited-release sneakers online much faster than a human can. This technology makes it difficult for individuals to buy shoes manually. This contributes to the scarcity of high-demand pairs at retail.
How to Source Sneakers to Resell
Retail and Online Arbitrage
The most direct sourcing method is retail and online arbitrage, which involves purchasing shoes from retailers at their standard price. This can be done by visiting stores like Foot Locker on a release day or participating in online drops on brand websites such as Nike or Adidas. Success requires preparation and speed, as popular releases sell out in minutes. For online releases, it is helpful to create accounts on retail sites beforehand and have payment information pre-saved.
Entering Raffles and Draws
For high-demand sneakers, many retailers use raffles or draws instead of traditional first-come, first-served releases. These are often managed through mobile apps like Nike’s SNKRS. In this system, potential buyers enter a digital drawing for the opportunity to purchase a pair. Winning is largely a matter of luck, but entering as many as possible increases your chances.
Joining Cook Groups
Joining a “cook group” can be a valuable investment. These are private, subscription-based communities, often on platforms like Discord, where members share information about upcoming releases. These groups provide early links, site lists, and real-time monitoring of restocks, giving members an advantage in acquiring limited sneakers. The collective knowledge and tools offered can be a significant asset.
Buying Pre-Owned or from Collectors
Another sourcing avenue is to purchase sneakers from other individuals. This includes buying used pairs in excellent condition or acquiring deadstock sneakers from collectors. Platforms like eBay and Facebook Marketplace are good places to find these deals, but this method requires a keen eye for authentication and negotiation skills. Building a network can also lead to private transactions.
Authenticating Your Sneakers
Ensuring the authenticity of your inventory is necessary for building a trustworthy business. Selling counterfeit products, even unintentionally, can damage your reputation and lead to financial losses. Before listing any pair for sale, conduct a thorough inspection, starting with the packaging. The box label should have the correct style code, colorway description, and size information, all printed in a clean, consistent font.
When examining the sneakers, pay attention to the quality of materials and construction. The stitching should be neat and uniform, without loose threads or sloppy glue stains around the midsole. The shoe’s overall shape and proportions should match those of a confirmed authentic pair. Even the smell can be an indicator, as authentic sneakers have a distinct factory scent.
For high-value pairs or when self-authentication is not enough, use a third-party authentication service. These services employ experts who meticulously examine every detail of the shoe to verify its legitimacy. This adds a small cost but is a worthwhile investment to guarantee authenticity and build customer confidence.
Choosing Your Sales Platform
Selecting the right platform impacts your profitability, workload, and customer exposure. Dedicated sneaker marketplaces like StockX and GOAT are popular because they streamline the process by including authentication services. The seller ships the shoes to the marketplace for verification before they are sent to the buyer, which builds trust.
These managed marketplaces charge service fees for each sale, ranging from 8% to 15% depending on the platform and seller history. While these fees reduce the final profit margin, they cover payment processing, authentication, and customer service. For sellers who prioritize security and convenience, these platforms are an excellent starting point.
Selling directly to consumers through platforms like eBay or Instagram offers higher profit margins since fees are lower or non-existent. This approach requires more effort, as the seller is responsible for authentication, listing, and customer service. This path also carries a higher risk of fraudulent buyers, making it better for experienced resellers.
Preparing and Listing Your Sneakers
A compelling and professional listing drives sales. High-quality photographs are the most important element. Take clear, well-lit pictures of the sneakers from multiple angles, including the front, back, sides, outsole, and any unique details. If the shoes are pre-owned, transparently document any flaws like scuffs or creases.
The listing description should be detailed and concise. Include the shoe’s official name, style code, size, and condition. Be upfront about the state of the original box and whether accessories like extra laces are included. Researching comparable listings, or “comps,” on your platform will help you set a competitive price.
Pricing competitively does not always mean being the lowest. If your listing features superior photos and a more detailed description, a buyer may pay a slight premium for the confidence you provide. The goal is to present your product in a way that builds trust and justifies your asking price.
Managing Shipping and Customer Service
Proper packaging ensures the sneakers arrive in their advertised condition. Always double-box your shipments by placing the original shoebox inside a larger shipping box with packing material. This prevents damage during transit and preserves the condition of the original box, which collectors value.
Use a shipping service that provides tracking and insurance, as this protects both the buyer and seller. Share the tracking number with the buyer as soon as the item is shipped to keep them informed. Prompt and professional communication throughout the transaction can help ensure a positive experience and encourage good feedback.
Responding to questions quickly and handling any post-sale issues fairly will help you build a strong reputation. A good reputation is one of the most valuable assets in the sneaker resale market.