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.
Can You Really Make Money Reselling Sneakers
The market for reselling sneakers is huge. As a result, its not unrealistic that you could make $1 million in your first year of selling online.
You can also make between $70-100 for average, good-quality sneakers.
There are many people who would like to get their hands on the latest sneakers without having to pay for them.
This is why reselling shoes has become so popular, because its an easy way to make money and save money at the same time!
But how much can you really earn?
There are different ways of doing this depending on your niche as well as what type of sneaker you decide to sell.
Some rare finds or premium sneakers may be worth up two hundred dollars or more per pair.
eBay is also a great place for used shoes, just ask my friend Beau who runs a successful shoe flipping business.
Here is one of his best ever flips he bought the shoes below for $2 and look what they sold for!
How To Start A Shoe Flipping Business
If you want to get started reselling shoes for a profit, most people look at sneakers.
The sneaker market is huge, with over $1 billion in annual sales.
Starting a sneaker reselling business can be an excellent way to make money.
If youre into sneakers, it might be a great side hustle or even a full-time job.
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Best Ways To Start Reselling Sneakers
The best way to start reselling shoes in 2022 is by doing quick flips. You want to quickly resell sneakers and make a profit over and over again.
Eventually, youll be able to better tell which sneakers are going to be a quick flip and which will be a long-term hold. But if youre just getting started, quick flips are the way to go. Fast and easy money.
Ill go over a couple different ways to get started reselling shoes. Im including different methods to be more inclusive for different resellers to get started, no matter your current financial status.
Make Sure You Get The Package Design Right
The way you package your sneaker reseller business is often the first impression your customer has – so it’s important to get it right.
You may want to ask yourself these questions:
If my product is on a shelf next to hundreds of other similar products:
- Will my sneaker reseller business stand out?
- Will the branding/packaging create a connection with my customer, and hence, lead them to buy?
There are hundreds of tools you can use to help with packaging and design:
- Canva – Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
- Stickermule – High quality custom stickers you can include on or in your packaging.
- Noissue – Custom tissue paper and compostable mailers
- Rollo Label Printer – A great tool to print all shipping labels at home
Sheets & Giggles explains the motive behind their “Premium Unboxing Experience”
I had a particular vision for our packaging centered around one goal: because we were a DTC company and wouldnt do physical retail in year 1, we needed to focus entirely on an incredible unboxing experience that made the product feel as premium as possible.
Outside: a white box, nice wax coating, logo front and center with no other copy, easy to open, nice and sturdy.
Inside: make people smile from the get-go, have a social call-to-action, include free extra surprises , put funny copy all over the place, and add a donation bag that people could use to donate their now-defunct cotton sheets .
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How To Become A Sneaker Reseller The Road To Profit
Youre here! And that definitely means that youre doing your research about the sneaker industry. Of course, sneaker reselling caught your eye. The industry has been growing non-stop for years, and investing in kicks became a full-on side hustle! Of course, not everyone has what it takes to go into sneaker flipping. But if you think you can do it, then you should take a good look at the basics of how to become a sneaker reseller!
And if youre looking for more than sneaker investments, well youre in luck! The NFT world is growing very fast. You might as well ride that wave early on and become the owner of one of the most promising NFTs! And you can always do your research to find the next blue-chip NFT. After all, investing in different industries is pretty smart, especially if you have the capital! But in the meantime, lets take a look at what you need to do to go into the reselling game.
Applying The 10x Rule
Thinking back again to the successful commodity traders, I recognized the obvious fact that the reason that these traders became millionaires is because they were trading in large quantities of money.
I had also been watching the TV show Million Dollar Listing at the time, where real estate agents made as much money selling one house as the average American would earn in a year. They did basically the same amount of work as the typical real estate agent but made ten times more simply because they were selling houses that were ten times more.
I was selling $50-$100 items and making about $10 per sale and $50 per week, so I thought, why dont I sell items that are priced at $500-$1000 and make $100 per sale and $500 per week?
A similar amount of work for 10x the results.
I had saved some money and was ready to start flipping more expensive items but wasnt really sure where to start, so I searched for higher ticket items to sell. I knew luxury items were expensive, so I researched high end designer items and expensive watches.
Through my research though, I found that it was nearly impossible to make money reselling name brand luxury items. In fact, they were almost universally selling for less on eBay than they were in the store, even when they were on clearance.
Every now and then, I would find a luxury item on deep clearance at the mall and see on eBay that I could make a profit, but that the margin would be too thin and the sale too slow to justify the upfront investment.
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Authenticating Shoes For Reselling
No matter where youre buying or reselling shoes, you have to make sure theyre authentic. With so much money to be made in high-value sneakers, fakes are increasingly more sophisticated and difficult to spot. Even if its an accident, selling knock-offs will get you banned from most platforms. StockX has the most stringent standards, requiring you to ship your shoes to them for verification before going to the buyer.
Most platforms require you to verify on your own, which can be difficult, especially if youre new to reselling. Here are some tips for ensuring the shoes youre buying and selling are the real deal:
Sell Exclusively Expensive Models
Have you ever wanted to make more money with less work? Well you can, if you start to sell more expensive sneakers. 20% on $1,000 is worth $200 vs 20% on $100 which is $20, its simple math, you make more money moving heavier weight. Of course, other than the risk of a higher initial capital invested, there are more associated risks with dealing in more expensive goods. One is the issue of fakes. You have to make sure youre selling 100% authentic merchandise when you are handling rare shoes and serious buyers.
The other way to make even bigger profits on four figure shoes is simply knowing how and where to get them at retail. You can buy a pair of Yeezys for $220 and flip them for up to $2000. This is serious money. If you are serious about these topics and hoping to learn more tips, including how to effectively network with such high end buyers that will drive your revenue, keep reading and learning every day.
Advanced tactics are discussed in the post How to Use Sneaker Bots to Buy Yeezys and Jordans. Dont pass up on this read, its too valuable not to, and a lot of people in the community dont want to share this information but I dont mind. I think competition is wonderful and keeps people on edge!
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Goat Commission Fees Are From 95 25% Depending On Your Seller Rating
GOATs $5 seller fee is really a fee that covers shipping. And their 2.9% cash-out fee is used for payment processing.
The starting commission fees on GOAT are 9.5% for sellers with a rating of 90 points or higher. That rate is slightly lower than those for new sellers on StockX, but it can increase really quickly.
The good news is you can redeem yourself and get back to lower commission fees. Everyone starts out with 90 seller points. If you cancel a sale or GOAT comes across a verification issue with your sneakers, youll lose 10 points. For every positive sale that comes through, youll earn 2 points.
Check Your Sneaker Authenticity
While it seems like it is based on luck to get your hands on these well-coveted kicks, and admittedly a lot of it is based on luck, there are ways to boost your chances. For starters, cast your net wide by scouring resell sites, social media like Instagram and Facebook, and other sites like eBay because you will never know what you will find. Of course, for the riskier sites and social media you will have to be experienced enough to be able to tell real from fakes, as well as the condition of the sneaker.
Using a trustworthy site like Ox Street is best for beginners and even veteran resellers just to be safe, as we authenticate every pair of sneakers that are sold through our platform. This guarantee makes Ox Street one of the fastest growing online marketplaces for sneakers in the region, as it looks to expand into Australia followed by New Zealand in the future.
The next level and necessity to be the fastest will be getting bots to really speed up your buying process to ensure you are fast enough by doing things like auto-fill payment and delivery details to make the purchasing process as quick as possible. While this does not work for most raffles, there are bots designed to put mass entries to boost your chances of winning it and be able to cop a pair of rare kicks. Be prepared to pay developers for the softwareâs use, take it as start-up costs.
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How To List Shoes
Now that youve got your shoes clean and youve taken great pictures, you are ready to list.
The first thing you should do is find a comparable sale, either sold or a current shoe thats selling thats similar to the one that you have on eBay.
On eBay, youll see a button that says, Have one to sell, SELL NOW
And youll be able to import your pictures and a lot of the item specifics will be filled out for you.
Youll need to change the title, size, color, etc. to match your shoes.
Be sure to list any flaws, be specific on color, and just be very honest with the condition.
Condition is really important on shoes. The buyer is probably going to read the condition description before they look at the pictures.
Why Do Nike Shoes Cost So Much
New data shows that insatiable demand, import charges, and higher wages have skyrocketed the price of sneakers. Sneaker prices have been steadily rising over the past year, according to new data by the U.S. Bureau of Labor Statistics and those prices could increase even more as the holiday season approaches.
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How To Start A Sneaker Reseller Business
Start A Sneaker Reseller Business
When it comes to starting a sneaker reseller business, you may find yourself in a place where you have to make some big decisions.
You may be asking yourself:
- What’s the first step in establishing my business?
- How much will it cost to start my sneaker reseller business?
- How do I price my sneaker reseller business?
- How do I market my sneaker reseller business?
- … so much more!
We walk you through all of the steps from idea starting launching growing running your business.
The purpose of this guide is to act as an outline for the steps you’ll need to take to get your business running successfully!
Determine Which Business Bank Account You Need
There are hundreds of banks out there, and it can be overwhelming to find one that’s right for your business.
Here are some factors you may want to consider:
- Location – Is your bank close enough that you can easily make deposits or get cash?
- Low Fees – Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list – banks usually try to keep this hidden and in the fine print.
- Online Banking Services – Make sure you can easily navigate through your online portal and you have easy access to everything you need.
- Line of Credit – What do your options look like .
- Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.
Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.
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Navigating The Industry During The Pandemic
While slowdowns in shipping and supply chains caused some problems for the sneaker industry early on in the pandemic, the value of certain pairs, like the Air Force 1 and Air Jordan 1, has remained strong. Experts say that some pairs, like the Nike SB Dunk Low Travis Scotts or the Jordan 5 Retro High Off-Whites, will likely skyrocket in value after the pandemic. The CEOs of GOAT, Stadium Goods, and Bump all predicted that the sneaker resale market will continue to grow, and the proof is in the businesses. One teen entrepreneur that we spoke to said his business soared during the pandemic, bringing in close to $500,000 in sales during quarantine.
Tips For Buying Sneakers On Ebay
Still a leading platform for online purchase, eBay helps you like this:
- Quality Authentication: Take advantage of eBays product authentication program, which ensures you are against buying counterfeit items.
- Seller Feedback: Sellers have feedback ratings. If they have a reputation for burning buyers, youll see that here before you commit.
- Dont Bargain Hunt: Scammers try to lure prospects with bargain-basement pricing. Check against Stockx, and avoid discounted items on eBay.
- Work Your Nose: Learn common-sense rules for identifying scammers. They tend to have a signature, and noticing it upfront can save you cash and embarrassment.
- Plausibility Check: Apart from the item sold, check the sellers inventory for plausibility. Avoid sellers who seem to have lots of rare items in stock.
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What Is Sneaker Reselling
Sneaker reselling involves buying sneakers from retailers or manufacturers and then reselling them for profit. When the purchase happens at a discount, the shoes can be sold immediately. What is typical is for sales to occur months or even years after the retail price has appreciated.
While the industry is experiencing rapid growth now, it has been going as an underground activity amongst sneakerheads since the mid-eighties, when Nike launched the legendary Air Jordan 1.
Reliable resellers would camp overnight outside retail outlets on the evenings before releases, ensuring theyd be the first to snap up the newly-released items before sell-out. That still happens, but the emergence of the Internet has shifted the product release, queueing, and buying online.
Sneakerheads today use social media and industry contacts to learn of release dates usually timed for the pre-dawn hours. They join long online cues, sometimes using bots and paid employees to place orders off multiple credit cards, in a bid to bypass the one-customer-one-pair policy that the manufacturers increasingly try to apply. Reselling hyped sneakers is often one of the best things to sell on eBay for profit quickly.
Wheres The Best Place To Resell Shoes
Still, I love the feeling of doing in-person deals either through Craigslist, sneaker conventions, or Facebook/Twitter groups.
Obviously, selling in person requires extra precautions, but if you use common sense and deal with good people through networking, youll get the best prices from in person on the buying side because online sellers are paying for shipping and fees to the platform that theyre selling on.
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