Can You Really Make Over $10k/Month Reselling Sneakers?

Can You Really Make Over $10k/Month Reselling Sneakers?

The sneaker industry has always been big, but now with the explosion of reselling apps online, sneaker resellers multiplying by the day, and frequent new footwear drops, it’s bigger than ever.

In fact, the sneaker market is now valued at over $2 billion in 2024 and is expected to reach a staggering $30 billion by 2030.

Some of the highest earning sneaker resellers like JV Ortiz even make over $10k a month.

The real potential lies in higher-priced, limited-edition sneakers. This guide will show you how to target these lucrative opportunities and maximize your profits.

Reselling Sneakers Has CRAZY Profit Margins…

Some of the highest profit margins you’ll see are sneakers like the Ben & Jerry's Chunky Dunky.

These unique shoes were initially sold for $100 but have increased over 1100% in value in recent years to prices over $1200.

And apart from the profit margins, the sneaker resale market offers distinct advantages. Let's explore why sneakers are the kingpins of the reselling game:

Another example is the Nike Air Yeezy 2 Red October, originally retailed at $250, has been known to fetch resale prices upwards of $6,000, marking a staggering 2300% increase.

One of the craziest examples would be the Nike MAG Back to the Future, which had a retail value around $200 in 2011 and has reached auction prices as high as $52,000 due to its iconic status and extremely limited availability.

So in a huge way, being first to identify and predict the next big sneaker is huge. Of course, that’s easier said than done.

The Trick To Finding Sneakers With The Highest Profit Potential

One of the primary drivers of resale value is the scarcity of the product.

Limited edition sneakers, such as those from the Nike x Off-White collaborations, typically see their value skyrocket due to limited supply.

These sneakers can often sell for up to 4x their original retail price. The principle here is clear: the harder a sneaker is to obtain, the higher its potential resale price.

Sneaker size also plays a surprisingly significant role in determining resale value.

StockX data indicates that unusual men's sizes, such as 16 or 4.5, and women's sizes 10.5 and 11.5, tend to have higher resale multiples.

These sizes can command resale prices that are approximately 1.86x their retail price, suggesting a niche market for rare sizes.

This could be a sneaky way to break into the sneaker market where others aren’t already at.

What about brands?

Certain sneaker brands and models consistently perform better on the resale market.

For instance, Nike SB has an average resale multiple of around 1.95x, meaning these sneakers often sell for nearly double their retail price.

However, the resale value of sneakers can also fluctuate over time, following what's termed the "Swoosh™ curve, which suggests that sneaker prices will typically:

1.) Peak before release due to anticipation and hype

2.) Dip shortly after as market saturation occurs

3.) May rise again as the sneakers become rarer over time.

Lastly, Collaborative releases are often highly anticipated and can command significant resale premiums.

The most notable would be Kanye West / Adidas' Yeezy sneakers, especially early releases like the Yeezy Boost 350 and the Yeezy Boost 750.

Models that initially retailed for around $200 to $350 have been known to resell for upwards of $1,000, with certain colorways and limited releases reaching even higher prices.

Profitable Niches in Sneaker Reselling

Apart from collabs, there are some other sneaker niches you’ll want to stick to that can often command high resale value:

• Underrated Brands: While Jordans and Yeezys dominate headlines, lesser-known brands can offer hidden potential. Researching rising brands with strong design aesthetics and limited production runs can unlock profitable opportunities. Think Doc Martens collaborations or a specific New Balance model experiencing a resurgence.
  

• Vintage Revivals: Classic sneakers can experience a resurgence in popularity. Identifying iconic models from past decades, particularly in pristine condition, can be highly profitable. Knowledge of vintage styles and proper authentication techniques becomes essential in this niche.
  

• Deadstock Delights: "Deadstock" refers to unworn, original sneakers, often still in the box. This niche caters to collectors seeking pristine examples of coveted releases. Staying tuned to market trends and identifying models with potential for long-term appreciation are key strategies here.

The BRR Method - Buy, Refurbish, Resell

To effectively make money from buying, refurbishing, and reselling sneakers, you’ll need to learn some sneaker surgery skills.

While the more intricate work like intricate stitching might take years to learn, there are some basics you can learn to majorly restore used sneakers to sell more high prices again.

Step 1: Sourcing Sneakers

Begin by identifying underpriced sneakers with potential for high resale value.

The secondary sneaker market has seen explosive growth, with platforms like StockX and GOAT reporting transaction volumes in the millions annually.

Sneakers can be sourced from thrift stores, online marketplaces like eBay, or directly from owners.

For instance, thrift stores often price valuable sneakers well below market value due to a lack of specialized knowledge, providing an opportunity to acquire sneakers at a fraction of their potential resale price.

Step 2: Refurbishing Sneakers

Once acquired, refurbish these sneakers to enhance their condition and market value.

Refurbishing includes thorough cleaning, deodorizing, and repairing any damage.

The refurbishment can significantly increase the resale price. For example, a study indicates that cleaned and restored sneakers can sell for as much as 40-80% more than their found condition.

Techniques such as un-yellowing soles and repainting can transform worn sneakers into desirable shoes, appealing to collectors and enthusiasts who are willing to pay a premium for sneakers in excellent condition.

Step 3: Reselling Sneakers

Resell the refurbished sneakers at a higher price, aligning with their market demand and rarity.

Effective sales channels include online platforms, social media, and sneaker conventions. The price should reflect the sneaker’s condition, brand, model rarity, and market trends.

A good trick is to utilize the "completed listings" filter on eBay to analyze recent sales prices of similar models.

This allows you to gauge what buyers are willing to pay.

On platforms like StockX and GOAT, compare the historical price trends and current 'ask' versus 'bid' values to understand market demand.

Factor in the rarity and condition of your sneakers by checking how frequently they appear for sale and the typical price range for sneakers in similar condition.

Finally, set your selling price slightly above the average if your sneakers are in exceptional condition or include original packaging, as these features can command a premium.

The Big 3 Sneaker Reselling Platforms

The big platforms for sneaker resale are StockX, GOAT, and eBay, each offering distinct benefits and challenges to both buyers and sellers. Here’s a detailed look at how to use these platforms effectively:

StockX

Benefits: StockX operates with a unique stock market-like model where users can bid or ask for sneakers, providing a clear view of the current market price.

It authenticates all sneakers before they are shipped to buyers, ensuring authenticity and quality.

This platform also offers detailed price histories and trend analyses, which can be invaluable for making informed decisions.

GOAT

Benefits: Similar to StockX, GOAT offers a robust authentication process, which is a significant draw for buyers concerned about counterfeit products.

GOAT allows sellers to list used sneakers as well as new, offering a broader marketplace. It also features a clean, user-friendly mobile app which is great for buying and selling on the go.

eBay

Benefits: eBay offers a massive, global marketplace with less restrictive entry barriers for new sellers compared to StockX and GOAT.

Over 10,000 pairs of sneakers are bought and sold on eBay every day, and it’s quick and easy to become a seller.

Recently, eBay has also introduced authentication services for sneakers over $100, enhancing buyer trust and making it a firm competitor to GOAT and StockX.

Biggest Mistakes To Avoid In Sneaker Reselling

The biggest challenge in this market is dealing with counterfeit products, which are pervasive.

Counterfeit kicks are a HUGE problem. In fact, the counterfeit industry is estimated at $600 billion, about 8x higher than the legitimate sneaker industry.

That’s why bro behind the sneaker counter is eyeing your shoes like a hawk and giving you the death stare within the first 10 seconds of meeting you. It’s seriously that widespread of a problem.

This is where the authentication services from GOAT or StockX really ensure the sneakers' authenticity.

When sourcing from less controlled environments, like meetups and conventions, developing an expertise in identifying fakes becomes crucial.

Second, building credibility is essential for success in the online resale market.

Developing a robust social media presence that showcases your sneaker knowledge and expertise can help build trust with potential customers.

@SneakerNews has a popular Instagram that positions them as experts and gets them steady business without paying for ads.

The BMM Takeaway

With major celebrities and influencers rocking the most sought after kicks and building huge sneaker collections, the popularity and value of limited edition sneakers has exploded in the past decade.

New sneakerheads are being cultivated by the day, and with the explosion of sneaker conventions, footwear blogs and pages, podcasts, sneaker trade in shops…The sneaker culture is literally everywhere.

In other words, if you’ve ever wanted to turn your passion for sneaker collecting into a crazy lucrative business or side hustle, now would be the time.