Flipping sneakers has become a profitable side hustle and even a full-time business for many enthusiasts. With the popularity of limited-edition releases and collaborations, sneaker resale values can skyrocket, making it an exciting and potentially lucrative market.
Whether you’re a sneakerhead looking to make some extra cash or simply interested in the resale market, here’s a comprehensive guide on how to flip sneakers effectively.
Understanding Sneaker Flipping
Flipping sneakers is a branch of sneaker investing that involves buying limited-edition or popular sneakers at retail prices and reselling them at a higher price to make a profit. It's important to note that sneaker flipping or sneaker reselling requires careful research, knowledge of the market, and ethical practices. Here's a step-by-step guide on how to resell shoes to get started.
Money You Can Make Flipping Sneakers
The money you can make flipping sneakers varies widely, depending on factors like the sneaker's brand, exclusivity, and demand. On average, profit margins for popular models range from 30% to 100%, with some highly coveted pairs yielding up to several hundred dollars in profit each.
Limited releases and collaborations with brands like Nike, Adidas, and Jordan can generate returns of $100 to $500+ per pair, while extremely rare releases can command even higher prices. Consistent sneaker flippers who stay on top of trends and make savvy purchases can realistically earn anywhere from a few hundred to several thousand dollars monthly.
According to data from Persistence Market Research, the global second-hand footwear market is expected to expand by a compound annual growth rate of 12.5% between 2022 and 2023 to reach $4.31 billion by the end of 2032. Additionally, the U.S. sneaker resale market is projected to total $30 billion by 2030 from $2 billion in 2023.
Steps to Flip Sneakers
Like any investment, market research and education are the first steps in sneaker reselling. Here are the steps to take to start flipping sneakers.
Research and Education
Study the sneaker market to understand trends, brands, collaborations, and the factors that drive demand. Stay updated on release dates, new releases, and popular styles. Familiarize yourself with sneaker terminology, brands, and the resale value of different models. You can even find in-depth research on sneaker market price modeling.
Initial Investment
Set a budget for your sneaker-flipping venture. Remember that you'll need money to purchase sneakers before reselling them.
Source Sneakers
The key to reselling shoes is to purchase discounted, highly valued sneakers. Purchase sneakers from official retailers, sneaker boutiques, or directly from brands. Participate in releases, raffles, and online drops to secure limited-edition pairs. As you build contacts with brands, you can source sneakers at a discount or obtain high-value pairs.
Authentication
Authenticity is crucial for success in building a sneaker-flipping business. Learn how to identify genuine sneakers to avoid purchasing fakes. Familiarize yourself with details like stitching, materials, labels, and packaging.
Pricing and Valuation
Research the resale value of sneakers on platforms like StockX, GOAT, or eBay. Consider conditions, size, rarity, and current demand when setting your resale price.
Platform Selection
Choose a platform to sell your sneakers. Common options include eBay, StockX, GOAT and local marketplaces. Each platform has its own fees, rules, and verification processes. Weigh fees, limitations, and verification to select the best plan for your goals.
Listing and Marketing
When it's time to resell sneakers, create detailed and accurate listings that include high-quality photos, accurate descriptions, and special features. Transparency is the foundation of a strong business because it builds trust with buyers and is more likely to lead to greater long-term success. It can help you build a strong reputation among other investors and sneaker enthusiasts.
Shipping and Packaging
You'll want to package sneakers securely to prevent damage during shipping. For many sneaker investors, the box condition is as important as the sneaker condition. Use appropriate boxes, packing materials, and tracking services. Communicate with buyers about shipping details and include tracking services to ensure on-time delivery.
Customer Service
Providing excellent customer service is the cornerstone of a business. Plan to gain customer trust by promptly responding to inquiries, addressing concerns, and maintaining professionalism throughout the transaction.
Legal and Ethical Considerations
You'll need to check on legal considerations to abide by local laws and regulations related to reselling and taxes. To start, be transparent about the condition of the sneakers and avoid misleading buyers. Contact the Chamber of Commerce, the Secretary of State's office, or the local governing body to understand the requirements for licenses and legal compliance.
Profit and Reinvestment
As you profit, consider reinvesting in more sneakers to grow your inventory and business. You may choose to invest and hold some products or aim to sell all inventory quickly. As you re-invest funds, you could build a full-time sneaker-flipping business or a lucrative additional income stream as you gain expertise and increase profits.
Networking and Community
Networking can open new investment opportunities. Join sneaker communities, forums, and social media groups to connect with fellow enthusiasts, stay informed about trends, and learn from experienced flippers.
Continued Learning
The sneaker market is dynamic, and trends can change quickly. Continuously educate yourself, adapt to market shifts, and refine your strategies to maintain relevance and protect investment profitability. Follow online forums, watch other investors' sites, and network to understand changing market dynamics and resale opportunities.
Maximizing Returns on Sneaker Reselling
Remember that sneaker reselling can be one investment in a diversified portfolio. You could purchase one pair of shoes at a time. By adding an income stream from reselling shoes, you can grow revenue and investment opportunities over time while continuing to invest in a diversified portfolio.
Ready for other investment opportunities? Learn more about how to buy your first rental property, investing in real estate investment trusts (REITs) or real estate crowdfunding.
Frequently Asked Questions
Is sneaker flipping profitable?
Yes, sneaker flipping can be profitable, but success largely depends on several factors including market knowledge, timing, and sourcing strategies.
How much do sneaker resellers make a month?
On average, beginner resellers might earn anywhere from a few hundred to a couple thousand dollars per month. More experienced resellers or those with a larger inventory can potentially make thousands—sometimes exceeding $10,000 or more monthly—especially if they capitalize on limited releases and high-demand models.
Is reselling shoes illegal?
Reselling shoes is generally legal, provided that you adhere to local laws and regulations regarding resale businesses.
About Alison Plaut
Alison Kimberly is a freelance content writer with a Sustainable MBA, uniquely qualified to help individuals and businesses achieve the triple bottom line of environmental, social, and financial profitability. She has been writing for various non-profit organizations for 15+ years. When not writing, you will find her promoting education and meditation in the developing world, or hiking and enjoying nature.