Sneaker Reseller Business

How Profitable Is A Sneaker Reseller Business? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Sneaker Reseller Business? (Updated for 2024)

So you want to start a sneaker reseller business?

And the first question that came to your mind was, “well, are sneaker reseller businesses actually profitable?”

Especially considering:

You could start a sneaker reseller business with as low as $5,000
Based on our data, sneaker reseller businesses generate an average of $450K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a sneaker reseller business.

Let’s dive in!

Is a sneaker reseller business profitable?

Yes, a sneaker reseller business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $450K per year with an estimated gross margin of 50%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your sneaker reseller business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your sneaker reseller business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a sneaker reseller business worth it?

If you’re wondering if a sneaker reseller business is worth it, the answer is a big YES. With sneaker reseller businesses, you have the potential to earn $450K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a sneaker reseller business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful sneaker reseller businesses case studies.

Examples Of Profitable Sneaker Reseller Businesses

Here are a few examples of profitable sneaker reseller businesses, and a few more details about them:

1. KickFlips ($48K/year)

Casey Woodard, the founder of KickFlips, came up with the idea for his business after years of successfully flipping items and receiving numerous requests from friends to teach them how to flip sneakers. He noticed a gap in the market for an affordable and effective resource for learning to flip sneakers, which led him to create KickFlips. Since its launch in February 2021, KickFlips has gained over 1,500 users organically through word of mouth and referrals, and is generating $4,000 in monthly revenue with minimal expenses.

Is it profitable? Yes
How much money it makes: $48K/year

I Started A $48K/Year Newsletter For Sneaker Heads

Founder Casey Woodard started KickFlips, a sneaker and streetwear flipping resource, which currently brings in around $4,000 per month in revenue with roughly $150 in expenses, boasting a little over 1,500 users almost exclusively through word of mouth and referrals.

Read this case study

Read by 13,926 founders

2. Dropout SRL ($1.68M/year)

Kola Tytler, the founder of dropout, came up with the idea for his business after learning about the underground sneaker resale market and self-teaching himself to code a sneaker bot. He later teamed up with others to create software that collected data and ran statistical analysis, which led to the creation of HypeAnalyzer. Frustrated with university, Kola decided to bring the ultimate sneaker shopping experience to Italy, leading to the birth of dropout.

Is it profitable? Yes
How much money it makes: $1.68M/year
How much did it cost to start: $120K

How I Started A $840K/Year Business Selling Limited Edition Sneakers [Italy]

Founder Kola Tytler managed to build a profitable business, Dropout, worth over $2.5 million by selling limited edition sneakers and streetwear, despite having no prior experience and juggling medical school; the company saw over 50,000 in-store visitors and over $100k in sales in December 2021 alone and raised €750k via equity crowdfunding in 6 days.

Read this case study

Read by 4,119 founders

Learn more about starting a sneaker reseller business:

Where to start?

-> How much does it cost to start a sneaker reseller business?
-> Pros and cons of a sneaker reseller business

Need inspiration?

-> Other sneaker reseller business success stories
-> Marketing ideas for a sneaker reseller business
-> Sneaker reseller business slogans
-> Sneaker reseller business names

Other resources

-> Sneaker reseller business tips

How much can you make with a sneaker reseller business?

With a sneaker reseller business, you can make an average of $450K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $5,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a sneaker reseller business make a week?

Based on our data, average weekly revenue for a sneaker reseller business ranges around $9.38K. As such, you could see monthly revenues of $37.5K.

To know if your sneaker reseller business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your sneaker reseller business.

How much do sneaker reseller businesses owners make?

The income of a sneaker reseller business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established sneaker reseller business is about $9.38K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a sneaker reseller business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Sneaker Reseller Business Profit Margins

Generally speaking, a sneaker reseller business can expect profit margin of around 50%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a sneaker reseller business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, sneaker reseller business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, sneaker reseller business owners can ensure long-term sustainability and profitability for their business.

Sneaker reseller business owner salary

The salary of a sneaker reseller business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established sneaker reseller business, in a prime position, might see an average weekly salary around the ballpark of $4.69K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a sneaker reseller business may be a promising business to start - but the success of your sneaker reseller business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable sneaker reseller business.

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Starting A Sneaker Reseller Business: Everything You Need To Know

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