A pair of branded sneakers is like a reflection of one’s social standing today!
One post on social media wearing a limited edition or popular pair of sneakers, like the New Balance 550, can make you the talk of the town among your followers. More so if famous influencers and celebrities like Kanye West and Cardi B wear the pair.
It’s no wonder that the sneaker market is surging at an annual growth rate of 5.18%. In fact, as of 2024, the sneaker industry has generated a revenue of $80.19 billion. These figures show that the sneaker culture is thriving and will continue to do so.
That said, the rise in demand for limited edition releases and famous collaborations has also led to the growth of the underground sneaker market.
The sneaker resale market is omnipresent globally, with sneaker enthusiasts and entrepreneurs buying off limited editions and latest releases and reselling them at a higher retail price. So, let’s dive into this underground world of sneakers and explore its hidden secrets.
Exploring The Secondary Sneaker Market
The sneaker resale market is a subculture in the sneaker industry that is continuously growing without the general population knowing the extent of its size. Shoes retailing for a few hundred dollars are sold for thousands due to their high demand.
So, if you still need to grab the newest release from brands like Adidas, Nike, and New Balance, you know where to go. While Craigslist and eBay were primary marketplaces initially, stores like Sole Stage, Stadium Goods, and Flight Club have become popular avenues after questions on the safety of sneakers arose.
Even apps and websites like Facebook Marketplace, GOAT, and Stock X have been leading frontrunners in the legal sneaker resale market. GOAT has over 300,000 unique items up for sale with more than 1 million sellers.
That said, these days, people are a bit apprehensive about purchasing sneakers from Stock X. The reason is that Nike sued the company in May 2022, stating that the latter sold counterfeit products on its app. Stock X has, of course, denied these allegations, but the lawsuit is ongoing, so it’s too soon to comment on the matter.
Nonetheless, it’s a good place to stay updated on the latest trends in the sneaker market, even if you don’t buy anything on the platform.
How Has Sneaker Reselling Emerged As A Lucrative Business
The sneaker resale market is expected to generate a revenue of more than $30 billion by 2030 in the US. After all, the passion for footwear associated with celebrities and influencers will only increase among today’s generation.
Brands further enhance this hype by creating an artificial market scarcity. They limit the availability of the latest sneaker releases to create a scarcity that increases resale values.
When Nike released the Nike Air Jordan 4 Retro “Eminem Carhartt” Sneakers, only ten pairs were available on eBay. They were sold for a whopping combined total of $227,522! The three pairs that were available on Flight Club sold at prices between $14,000 and $20,000.
So, believe it or not, basketball shoes can be sold as collectables in the sneaker resale market for thousands of dollars, providing entrepreneurs with 10x profit margins.
Another factor that has helped the secondary sneaker market grow into a lucrative business opportunity is the automation of the buying and reselling process. Gone are the days when entrepreneurs and sneaker resellers would have to stand in long lines to buy off the limited edition stock released by big brands.
Resellers use exclusive software, proxy servers, and bots to automate the online purchasing process. This lets them buy multiple pairs of latest and limited edition sneakers at competitive retail prices.
They also have connections with the “insiders” of the sneaker industry, including store employees, who help them access information about early releases before the general public.
The business potential in the sneaker resale market is enormous despite the scrutiny it has faced from legal authorities and sneaker brands.
Resellers are leveraging social media to market their business and attract a diverse group of people as their target audience. They are also using certain strategies to increase the overall profit margins of the business.
While some make bulk purchases as stock, hoping their value will increase with time, others “flip” them almost instantly to make a quick profit.
That said, it’s important to keep track of the latest buzz in the sneaker world on online forums and communities, both as a buyer and seller. You can also stay on trend by checking out the GOAT and Stock X websites.