You've heard of house flipping made popular by reality TV, but you might not have heard of shoe flipping. Shoe flipping involves buying and reselling sneakers for profit. Some investors make as much as $10,000 monthly with a sneaker reselling or shoe-flipping side hustle. Learn how to flip sneakers and take advantage of this investment opportunity.
Understanding Flipping Sneakers
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.
Steps to Flip Sneakers
Like any investment, market research and education are the first step 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, Secretary of State’s office or 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 additional income stream from reselling shoes, you have the opportunity to 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
What does it mean to flip sneakers?
Flipping sneakers is like flipping real estate, except you purchase sneakers and re-sell them rather than homes. You can also flip domain names, property or furniture. With sneaker reselling, you need in-depth market knowledge and reliable sources to maximize returns.
How can I start flipping sneakers?
You can start flipping sneakers by researching current trends, limited releases and high-value sneakers. You can join forums and network with other sneaker investors to gain knowledge of the markets. When you’re ready, you can purchase a pair of sneakers to flip.
What are some key strategies for successful sneaker flipping?
Key strategies for successful sneaker flipping include purchasing sneakers in bulk, signing up for sales or exclusive events or purchasing at a discount through online marketplaces and sales. You can also consider sourcing highly-valued or limited-edition sneakers that resell more than 150% above retail value.
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.