Business Idea

Start A Sneaker Reseller Business

About

Starting a sneaker reseller business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell sneakers, or selling sneakers online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a sneaker reseller business ➜

Key stats

market size
$6B
revenue (monthly)
$4.5K
starting costs
$44.3K
gross margin
50%
avg product price
$500
time to build
7 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

About

Starting a sneaker reseller business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell sneakers, or selling sneakers online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a sneaker reseller business ➜

Key stats

market size
$6B
revenue (monthly)
$4.5K
starting costs
$44.3K
gross margin
50%
avg product price
$500

 

time to build
7 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800
Total Startup Costs $9,207 $76,247

Successful Businesses

Business URL Rank
Balenciaga Official Online Boutique US balenciaga.com #2,394
Stadium Goods stadiumgoods.com #14,944
Flight Club flightclub.com #19,559
Nice Kicks nicekicks.com #48,181
Kicks on Fire kicksonfire.com #57,835
SneakerStudio.com sneakerstudio.com #59,870
Offspring offspring.co.uk #69,029
Sneaker10.gr sneaker10.gr #70,444
Graffitishop graffitishop.net #120,369
Shelflife shelflife.co.za #142,324
ROOTED stay-rooted.com #157,740

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a sneaker reseller business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the sneaker reseller business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Control of workload With starting a sneaker reseller business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A sneaker reseller business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the sneaker reseller business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a sneaker reseller business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a sneaker reseller business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜