Money Analysed

Sneaker Resale: A Lucrative and Competitive Investment Opportunity

Investing in Sneakers

Sneakers have come a long way from being solely used for athletic purposes to becoming a symbol of status, style, culture, and an investment. Since the 1980s, sneakers have evolved from simple and affordable footwear to highly exclusive and expensive collector’s items.

As of 2021, the sneaker resale market is valued at $2 billion globally, according to Cowen & Co estimates. The growth of the industry can be attributed to the increasing number of fans interested in owning rare and limited edition sneakers, which are sold for higher prices than their retail value.

In recent years, there has been a surge of interest in sneaker culture worldwide and a boom in the sneaker resale market. Evolution of Sneakers as a Coveted, Collectible, and Tradable Item

One of the most iconic sneakers in history is the Air Jordan.

Michael Jordan’s signature silhouette launched in 1985 and revolutionized the sneaker industry. Today, Air Jordans remain one of the most sought-after sneakers on the resale market, with the earliest models selling for over a thousand dollars.

Sneaker Con, founded in 2009, is a traveling sneaker convention that brings together enthusiasts from around the world. Attendees buy, sell, and trade sneakers, while also showcasing their collections and participating in sneaker-related activities.

The culture surrounding sneakers has also given rise to various subcultures, such as “sneakerheads.” Sneakerheads are individuals who collect and trade sneakers as a hobby. Their passion for the shoes ranges from the design, rarity, and value to the history behind them.

Rise of Online Sneaker Resale Businesses

Online platforms have made it easier for buyers and sellers to conduct business. With the rise of the sneaker resale market, companies such as GOAT Group, StockX, and Flight Club have emerged as leaders in the industry.

GOAT Group, founded in 2015, is one of the leading sneaker resale platforms, specializing in authenticating and reselling sneakers. Its promise of a “100% authentic guarantee” has attracted a loyal customer base, making it a trustworthy platform for both buyers and sellers.

StockX, founded in 2015, operates as a stock market for consumer goods, including sneakers, streetwear, and luxury items. It allows users to buy and sell with full transparency, offering real-time pricing data and a bid/ask system.

This model creates a competitive marketplace that drives up prices for some of the most sought-after items. Flight Club, founded in 2005, is a consignment shop for sneakers.

The company has retail locations in New York and Los Angeles, as well as an online platform. It specializes in high-end sneakers and provides a platform for sneakerheads to buy, sell, and trade authentic sneakers.

Factors Affecting Resale Value of Sneakers

Demand, limited edition releases, condition, and investment potential are the primary factors that affect the resale value of sneakers. Demand plays a significant role in determining the resale value of sneakers.

If a particular sneaker is highly sought-after and limited in quantity, the price point will be higher. The hype surrounding the release of a new collaboration also drives up demand and resale value.

Limited edition releases are another factor that affects the resale value of sneakers. Companies often release limited edition collections with unique designs, collaborations with popular artists or brands, and higher quality materials, which offer potential for better returns.

The condition of the sneaker also impacts its resale value. Generally, sneakers in new or near-new condition sell for higher prices than those with signs of wear and tear.

A sneaker’s condition is assessed based on factors such as scratches, scuffs, sole wear, and creases. Investment potential is perhaps the most critical factor that impacts the resale value of sneakers.

A shoe’s investment potential is evaluated based on its past resale history and expected future value. Some sneakers become more valuable over time due to their rarity or historical significance.

Pros and Cons of

Investing in Sneakers

Investing in sneakers as a source of extra income can be a lucrative option for those with a passion for shoes, but it also comes with its challenges. One significant advantage is the potential for high returns.

With the right investment strategy, some sneakers can be bought for retail prices and resold for several times their original value. Investing in sneakers also allows investors to diversify their portfolio and gain exposure to alternative investment markets.

The competitive market is the primary challenge of investing in sneakers. The most desirable sneakers can sell out within minutes, and buyers must be quick to secure desirable sneakers.

The upfront costs of investing in sneakers can also be high and deter some investors from entering the market.

How to Invest in Sneakers

Finding the Best Shoes to Sell

Retail stores, online purchases, mobile apps, and discounted stores are some of the ways to find the best sneakers to resell. Retail stores are a good starting point for those new to the sneaker resale market.

Mobile apps such as Sneaker Releases, Goat, and StockX can be used to track new releases and price trends, allowing investors to act quickly.

Reselling Shoes through Secondary Sneaker Resale Websites

To sell sneakers, investors can use secondary sneaker resale websites such as StockX, GOAT Group, and Stadium Goods. These platforms provide authenticating and shipping services to customers, making it easier to sell high-ticket items with confidence.

Fee structures vary from platform to platform, so investors should research each one when deciding which to use.

Reselling Shoes on Online Consignment Shops

Online consignment shops such as Mercari, OfferUp, Poshmark, thredUP, eBay, and Amazon offer a way for investors to sell sneakers directly to buyers. These platforms have more flexible fee structures, but investors must handle the authentication and shipping processes themselves.

Using Social Media and Creating Quality Listings to Increase Chances of Successful Reselling

Investors can use social media sites such as Instagram to showcase their collection and attract potential buyers. Creating quality listings with clear pictures, descriptions, and price points can also increase the chances of successful reselling.

Fractional Shares of Alternative Assets on Public

Investors can also invest in fractional shares of alternative assets on public platforms that securitize sneakers. Platforms like Rally Road and Otis allow investors to buy shares in high-value assets such as sneakers, collectibles, and cars.

Investing in sneakers requires research, patience, and a sound investment strategy. The sneaker resale market is a competitive space, but with careful planning, investors can profit from the industry’s growth and demand for coveted sneakers.

Potential ROI of Sneaker Resale

Sneaker resale can be a potentially lucrative business venture, but the profitability levels vary depending on several factors. Some individuals treat sneaker reselling as a hobby and make extra income from their sales, while others operate full-time sneaker reselling businesses.

Factors that Influence How Much Money Can Be Made Reselling Shoes

The primary factor that affects how much money can be made from reselling sneakers is the sale price. Investors must buy sneakers at a lower price than their expected resale value to make a profit.

For example, if a given sneaker has an expected resale value of $500, the investor should aim to purchase it for as low as possible, say $300. This way, the investor would make a profit of $200 from the resale.

Another factor is the business operating costs. These can impact the profit margins of a sneaker reselling business.

The costs may include expenses such as renting a storage facility, travel expenses, shipping costs, and labor costs, among others. To maximize profits, investors need to keep their business operating costs low.

Verifying Legitimacy of Sneakers to Avoid Buying Fakes

One of the challenges of sneaker reselling is the presence of counterfeits in the market. Investors run the risk of losing money by reselling fake sneakers.

Therefore, it’s essential to verify the legitimacy of the sneakers to avoid buying fakes. To avoid buying fake sneakers, investors should focus on purchasing from reputable sellers who have had a history of supplying genuine products.

Verification can also be done by examining the packaging, comparing the product with verified versions, and confirming the product’s authenticity through the brand’s authentication process.

Challenges of Sneaker Resale

Competitiveness of Sneaker Resale Business

Sneaker reselling is a highly competitive business, and the competition continues to rise. High demand for limited editions and exclusive releases, as well as popular collaborations, drive up the competition in the market.

To combat the competitiveness, investors must stay ahead of the curve by keeping a close eye on the market trends and working with reputable retailers. Networking with other investors and using social media can also increase the chances of finding new leads and exciting deals.

Upfront Costs, Fees, and Shipping Processes

The upfront costs associated with sneaker reselling can be challenging for some investors. Start-up costs may include purchasing storage facilities, transportation costs, and operating costs such as electricity and other utilities.

Additionally, sneaker reselling platforms charge fees to cover processing or transaction fees. These fees can be a percentage of the sale price, which can eat into a seller’s profits.

Furthermore, the shipping process can also be costly, especially for international buyers.

Limitations in Locating High-Value Shoes to Resell

Sneaker reselling is challenging because of the limited availability of highly sought-after sneakers. The demand for popular brands and models is higher than the supply, which makes it difficult for investors to secure high-value shoes to resell, especially when there are restrictions on purchasing and resale.

Thrift store finds are one alternative for investors to find hidden gems. However, it takes time and patience to sift through the piles of sneakers to find a profitable pair.

In conclusion, investing in sneakers for resale purposes can offer investors exciting possibilities for profit. Sneakers are fast becoming a valuable alternative investment globally, with enthusiasts willing to pay a premium for limited edition and rare pieces.

However, sneaker reselling also requires a substantial amount of knowledge, time, and resources to be successful. By understanding the challenges and strategies for success, investors can maximize their profits and thrive in the industry.

Investing in sneakers can be a smart way to make money and diversify your investment portfolio. It is a side hustle that can turn into a full-time venture if executed correctly.

However, it is essential to do thorough research and understand the sneaker industry before diving in. In this article, we have discussed several factors, including the growth of the sneaker resale industry, how to invest in sneakers, potential ROI, challenges, and limitations.

Summary of

Investing in Sneakers as a Means of Earning Money

Investing in sneakers has become a popular way to earn extra income. The sneaker resale market is a multi-billion-dollar industry, with sneaker enthusiasts, collectors, and resellers fueling demand for exclusive and limited-edition sneakers.

The competition in the market has increased, with many investors seeking smarter ways of investing in popular brands and models. As such, more platforms have emerged to enable investments in fractional ownership of alternate assets, such as sneakers, collectibles, art, and more.

Importance of Doing Research and Understanding the Sneaker Industry

A critical aspect of earning money through sneaker resale is doing thorough research and understanding the sneaker industry. Investors must familiarize themselves with market trends, sneaker culture, and popular brands and models.

Additionally, investors must have access to reliable resources, such as sneaker conventions, reselling platforms, and expert opinions. By keeping up with the latest trends in the industry, investors can stay ahead of the competition and make better investment decisions.

Potential Benefits of Using Public to Invest in Alternative Assets

Public is a new platform that enables investors to invest in fractional shares of alternative assets such as rare sneakers. This model makes it possible for smaller investors to participate and benefit from premium and exclusive assets traditionally reserved for the wealthy.

The benefits of investing in fractional ownership include the ability to diversify your portfolio, lower investment risk, and increased access to exclusive assets. Public also provides tools and resources for smart investing, such as educational content and price change alerts.

Investors can access a community of like-minded investors to share ideas and learn from one another. By using Public, investors can invest in alternative assets confidently, knowing that they are backed by a trusted and regulated platform.


Investing in sneakers has become a lucrative and exciting way to earn extra income. However, success in the industry requires having an understanding of the market trends, staying ahead of the competition, maintaining relationships with sellers, and using reliable resources.

Fractional ownership of assets on platforms like Public provides an affordable and accessible way for investors to get involved in this competitive market. By doing thorough research, being aware of market trends, and staying up to date with the industry, investors can make smart investment decisions and make the most out of their sneaker resale venture.

Investing in sneakers for resale can be a lucrative side hustle or full-time venture. The sneaker resale market is valued at $2 billion globally, and it continues to grow.

However, success in this industry requires an understanding of the market trends, competition, and authenticating processes. Reselling on platforms like Public can provide a more accessible way for investors to get involved and diversify their portfolio.

By doing thorough research, staying ahead of the competition, and using reliable resources, investors can make smart investment decisions and maximize profits. Ultimately, investing in sneakers for resale purposes can provide exciting possibilities and financial rewards for those willing to put in the time and effort.

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