SNEAKER RESELLING SIDE HUSTLE: Your guide to making thousands flipping hyped pairs of Dunks, Jordans, and Yeezys

kickzmalik sneaker reseller
Gautam Malik is just one entrepreneur making thousands of dollars by reselling sneakers.

With the sneaker resale market continuing to thrive, Insider is covering all aspects of how to properly scale a business in the booming industry. From which sneakers to purchase to necessary technological investments, made in the form of bots that entrepreneurs entrust to nab pairs online, the following covers everything you need to know about how to break into the market that Cowen & Co. estimates could reach $30 billion globally by 2030.

Getting started

Sneaker reselling is based on a simple concept that guides many other businesses: buy low, sell high. You’ll want to figure out how to track expenses and figure out net profit on each pair sold. One entrepreneur who made over $125,000 in sales since January 2019 showed us his spreadsheet that he uses for tracking profits. You’ll also want to figure out your strategy. While some people might prefer to invest in a few pairs and wait for them to grow in value, others utilize a high-volume sneaker resale strategy to make money by moving product quickly at slimmer margins. Others focus on acquiring rarer pairs that can fetch thousands at auction. Some have even developed mathematical formulas to determine the best way to buy and sell. Lastly, it can be helpful to take a look at some up-and-coming sneaker resale websites to learn about new ways to make money in the industry.

Read more: A 16-year-old who made $125,000 in sneaker sales reveals his pro tips for young resellers looking to break into the multi-billion dollar industry

A sneakerhead who made nearly $7 million in sales last year reveals his secrets to tapping into the exploding multibillion-dollar resale market

The top sneaker seller on eBay who made $1.5 million in sales in 2019 reveals how he grew business to dominate the platform

We got a look at exact spreadsheet a 16-year-old uses to make thousands of dollars in sales as a major sneaker supplier to stores and boutiques

5 up-and-coming sneaker websites that resellers and collectors should use in 2020 to boost profit and nab hyped pairs

A sneaker reseller whose store has made millions in sales since 2018 shares the mathematical formula he uses to determine which pairs will skyrocket in value

Scaling your business

Once you nail down the basics, here are some tools to guide you on the next steps of growing your business. While many sneaker resellers can start from humble beginnings, it can take just a few months to hit sustainable profit margins. Attending sneaker events like Sneaker Con is a great way to build connections and make fast sales. But as your business grows, it is important to keep track of all of your sales and expenses to ensure that you file your taxes correctly each year.

Read more: Here are 5 steps that independent sneaker resellers live by to pay their taxes every season

How a formerly homeless sneakerhead with just $40 to his name built a multi-million dollar resale empire in 6 years

A sneakerhead who has attended more than 20 Sneaker Cons reveals his top 6 secrets for making the most money at a resale event

3 sneakerhead sisters could fetch over $1 million by selling thousands of their classic Nike, Adidas, and Reebok shoes through an exclusive eBay auction

Sneaker botting

In the sneaker resale world, a “bot” refers to a software application that expedites the online checkout process and helps resellers nab hyped pairs online – including limited-edition drops. Though a controversial aspect of the sneaker world, bots are often essential for purchasing the latest releases at retail prices. In many cases, these bots are built by former sneakerheads and self-taught developers who make a killing from their useful product. Bots, like sneakers, can resell for hundreds of dollars. There are even some bots that are meant to help users nab sneaker bots at retail. While sneaker-nabbing bots can give resellers a leg-up, they are often the cause of much distress on the side of footwear companies who are looking to mitigate the problem.

Read more: A sneaker reseller who uses multiple ‘bots’ to nab mass quantities of expensive shoes the moment they drop explains why the controversial tech is worth it

Inside the controversial underworld of sneaker ‘bots,’ where coded scripts resell for thousands of dollars and Twitter monitors can make or break a release

A 16-year-old’s sneaker bot business charged $200,000 in fees since October. Here’s how his 600-member group secures the coveted software before anyone else.

How a self-taught developer with no formal training made $700,000 in sales this year from his sneaker bot, Splashforce, that nabs hyped pairs in just milliseconds

As sneaker bots explode, a veteran reseller and YouTuber with over 160,000 subscribers reveals 3 steps to profiting from the lucrative tech

In the arms race between teenage sneaker bot users and footwear companies, one side is winning – and it’s not the billion-dollar companies

Cook groups and online services:

While they normally charge hefty membership fees, cook groups are exclusive forums that supply information for anyone looking to break into the multi-billion dollar market. They usually offer members access to botting services in addition to exclusive details related to drops. We got a look inside a couple of these groups, including Polar Chefs, a thriving cook group with over 400 members that was started by a teenager who employs 23 people to help him run the group. Cook groups are often run on Discord, a messaging platform that has become a hotbed for sneakerhead activity.

Read more: Exclusive sneaker resale groups make millions by paying insiders to leak information on valuable sneaker releases before they happen. Here’s a look inside one of these members-only forums.

Inside a teen’s exclusive sneaker cook group that makes him 6-figures in sales, employs 23 people full-time, and nabs pairs of the hottest sneakers on the market

How Discord went from gaming and alt-right hub to a sneaker cook group hotbed, where resellers charge fees to share their secrets for cracking the $2 billion resale market

A college dropout runs a multi-million dollar sneaker cook group, AMNotify, with thousands of members across the world. Here’s how he launched one of the first exclusive sneaker forums from a hospital bed in 2017.

Navigating the industry during the pandemic

While slowdowns in shipping and supply chains caused some problems for the sneaker industry early on in the pandemic, the value of certain pairs, like the Air Force 1 and Air Jordan 1, has remained strong. Experts say that some pairs, like the Nike SB Dunk Low Travis Scotts or the Jordan 5 Retro High Off-Whites, will likely skyrocket in value after the pandemic. The CEOs of GOAT, Stadium Goods, and Bump all predicted that the sneaker resale market will continue to grow, and the proof is in the businesses. One teen entrepreneur that we spoke to said his business soared during the pandemic, bringing in close to $500,000 in sales during quarantine.

Read more: The CEOs of GOAT, Stadium Goods, and BUMP outlined the best ways for sneaker resellers to navigate the multi-billion dollar market in the pandemic

The coronavirus outbreak is wrecking the sneaker resale industry, but investing in specific pairs can soften losses. Here’s how to navigate the market in crisis, according to the head of China’s Sneaker Con.

These are the sneakers most likely to skyrocket in value when the coronavirus panic dies down, according to the founder of the largest sneaker event in the world

A 17-year-old entrepreneur made close to $500,000 in sales reselling sneakers during quarantine. Take a look inside his pandemic-proof business model.

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The maker of Lil Nas X’s ‘Satan Shoes’ has settled a trademark dispute brought by Nike, and will buy back doctored Nike shoes it has sold

Lil Nas X's "Satan Shoe" collaboration with MSCHF.
Lil Nas X’s “Satan Shoe” collaboration with MSCHF.

  • Nike settled its lawsuit with MSCHF over the controversial “Satan Shoe,” the retailer told Insider.
  • The terms of the settlement include a voluntary recall for MSCHF buy back the shoes.
  • “The parties are pleased to put this dispute behind them,” Nike said in a statement.
  • See more stories on Insider’s business page.

Nike has settled with the maker of Lil Nas X’s controversial “Satan Shoe” for an undisclosed amount.

Nike filed a trademark infringement suit on March 29 after art startup MSCHF collaborated with Lil Nas X on a shoe that knocks off the Nike Air Max 97 and claimed to insert a drop of human blood to the midsole.

The terms of the settlement include a voluntary recall that allow MSCHF to buy back the Satan Shoes for their original retail price. MSCHF said on April 1 it had shipped at least 200 pairs of the shoe before a judge granted Nike’s temporary restraining order to stop processing the orders.

“If any purchasers were confused, or if they otherwise want to return their shoes, they may do so for a full refund,” Nike said in a statement to Insider. “The parties are pleased to put this dispute behind them.”

Read more: Nike tried to sue the controversial ‘Satan Shoes’ out of existence. Instead, it’s fueling hype as pairs sell for thousands of dollars on the resale market.

Nike added customers who do not want to return the shoe or encounter a “product issue, defect, or health concern,” should contact MSCHF. The shoe giant reiterated Nike had no role in selling the Satan Shoe.

MSCHF has made a reputation selling unorthodox, “meme-worthy” products, including a $10 toaster bath bomb and an app for making stock investments based on astrological signs.

Last year, the startup sold a Jesus-inspired sneaker filled with holy water that also appeared to be altered Nike Air Max 97s. The “Jesus Shoe” will also be part of the voluntary recall as part of Nike’s settlement.

“If we can make people a fan of the brand and not the product, we can do whatever the f–k we want,” Daniel Greenberg, the head of commerce at MSCHF, told Insider’s Paige Leskin last year. “We build what we want. We don’t care.”

MSCHF was not immediately available for comment.

Read the original article on Business Insider

The sneaker resale market exploded in 2020. These were the most expensive sneakers that sold on The RealReal this year, where some pairs went for up to $20,000.

Most expensive sneakers of 2020
The sneaker resale industry has continued to thrive amid a pandemic.

  • The sneaker industry thrived in 2020.
  • Hyped collaborations and a surge in demand for the Air Jordan brand helped keep the sneaker resale market hot.
  • Luxury consignment platform The RealReal shared a roundup of the most expensive sneakers to sell on the platform in 2020.
  • Visit Business Insider’s homepage for more stories.

2020 was a fantastic year for sneakers, pandemic notwithstanding. 

While lockdowns and store closures initially hurt production, the industry quickly bounced back, thanks to a variety of factors that helped ignite demand for certain pairs.

Across all sneakers available on resale platforms, Air Jordan soared above the rest in 2020, in part, thanks to the launch of ESPN’s Michael Jordan docuseries “The Last Dance.” 

Read more: In the ‘year of Jordan,’ GOAT CEO says demand for the retro sneakers has skyrocketed for reasons other than the ‘Last Dance’ documentary

Beyond Air Jordan, a slew of interesting new releases this year also fueled the hype.

The controversial Ben & Jerry’s-themed “Chunky Dunkys” and the Grateful Dead SBs are still fetching more than $1,100 and $700 on StockX, respectively.

Thus far, the $2 billion sneaker resale market has proven to be somewhat pandemic-proof. GOAT, a leading sneaker resale platform, saw a surge of new sellers joining the app at the start of pandemic. StockX, another leading sneaker resale platform, announced in a July report that it had surpassed 10 million lifetime sales and had its two biggest sales months ever during the months of May and June.

As 2020 draws to a close, Luxury consignment retailer The RealReal shared a roundup of the most expensive sneakers to sell on its platform in 2020. From the always popular “Back to the Future” themed Nikes to the Tom Sachs Mars Yard, here were the top sellers:

10. Nike Air Force 1 Low Scarr’s Pizza

Nike Air Force 1 Low Scarr’s Pizza

Sold for: $5,000

These sneakers were a result of a collaboration between Nike and Scarr’s Pizza, a New York City restaurant. The shoes were released for friends and family in August of 2019 and were inspired by the restaurant’s retro look. 

9. Nike SB Dunk Low “Reese Forbes Denim”

Nike SB Dunk Low 'Reese Forbes Denim' Sneakers

Sold for: $5,250

Released in 2002, this sneaker marked skateboarding legend Reese Forbes’ second Dunk collaboration. The denim-on-denim silhouette has made this pair iconic.

8. Nike x Tom Sachs Mars Yard Shoe 1.0

Nike x Tom Sachs Mars Yard Shoe 1.0 Sneakers

Sold for: $5,300

Designer Tom Sachs collaborated with Nike to launch this sneaker that was inspired by his experiences with NASA scientists. The sneaker initially launched in May of 2012 and was re-released in 2017.

7. Jordan 1 Retro Legends of Summer Red Glitter

Jordan 1 Retro Legends of Summer Red Glitter Sample Sneakers

Sold for: $6,500

These glittered sneakers launched during Justin Timberlake’s and Jay-Z’s fall 2013 “Legends of Summer” tour. At the time of the release, only a few pairs were given to fans.

6. Nike Air Force 1 Low G Dragon Peaceminusone Para Noise

Nike Air Force 1 Low G Dragon Peaceminusone Para Noise Sneakers

Sold for: $8,000

This low-top sneaker features a yellow leather Nike swoosh and daisy embroidery on the tongue.

5. Jordan 1 Retro Legends Of Summer

Jordan 1 Retro Legends Of Summer Sneakers

Sold for: $8,000

These limited edition Jordan 1s are were also from Justin Timberlake’s and Jay-Z’s fall 2013 “Legends of Summer” tour. This pair only surfaced on the resale market about a year after it dropped at the concert. 

4. Nike MAG “Back To The Future”

Nike MAG ‘Back To The Future’ Sneakers

Sold for: $9,995

The shoes inspired by the ones Michael J. Fox’s character Marty McFly wears in”Back to the Future Part II” was released in 2011. A product description on the Stadium Goods website describes the shoe as “perhaps the most sought-after sneaker of all time.”

3. Jordan 3/8 Retro ‘Kobe Bryant’ PE Pack

Jordan 3:8 Retro ‘Kobe Bryant’ PE Pack Sneakers

 Sold for: $11,875

The Jordan brand released these special-edition Jordans on February 14, 2016, to celebrate basketball legend Kobe Bryant. These sneakers are a tribute to Bryant’s 20 years in the NBA and feature the colors of the Los Angeles Lakers.

According to Amir Azarcon, The RealReal’s sneaker and streetwear expert, this limited edition pack became even more popular after the sudden death of Kobe Bryant in January.

2. Air Jordan 1 High OG Dior

Air Jordan 1 High OG Dior

Sold for: $16,500

Designer Kim Jones collaborated with the Jordan brand for this iconic Dior sneaker, which Azarcon described as the sneaker of the year. Launched in April of 2020, this pair represents a successful cross between sneaker culture and the luxury fashion space.

1. 2005 Parra x Nike Air Max 1 Hyperstrike Albert Heijn Amsterdam

2005 Parra x Nike Air Max 1 Hyperstrike Albert Heijn Amsterdam Sneakers

Price sold for: $20,000

These sneakers were one of two pairs designed by Dutch artist Pieter Jansen (Parra Patta) that were inspired by his hometown of Amsterdam. The colors on this pair represent Albert Heijn, a Dutch supermarket chain.

“This is one of the most coveted Air Max’s in the world, and this pair sold in less than 24 hours on our site,” said Azarcon.

 

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