Michael Jordan was the best thing that ever happened to Nike and you might be surprised to hear that the market for Air Jordan sneakers is now much higher than when Michael was playing. How is that possible?
Well through some ingenious marketing strategy and supply and demand manipulation, Nike developed a reseller’s market that is now worth over $1.2 billion dollars. In fact the reseller’s market in 2015 for second hand Nikes were higher than all of the revenue of Sketchers!
Jordans for sale are going for 2-4x the retail price. A lot of people hate the fact that resellers are flipping Jordan’s for astronomical prices but they provide a wanted service to those who, for whatever reason it may be, couldn’t buy the shoes on release day.
Adidas is getting into the reselling game with Kayne West’s Yeezys. Under Armour is starting to do the same.
Where to Get Information
Online sneaker retailers often announce restocks via their Twitter feeds, so if you want to be kept in the loop then it’s crucial that you’re subscribing to their tweets. You’ll always be in the know whether a restock is happening or not. Here are some accounts to subscribe to who’ve been known to tweet out a restock here and there:
Some Twitter personalities such as @SOLEMARTYR and @SOLELINKS are known to drop “early links” to products prior to the official launch on a retailer’s website. I don’t know how they know but they seem to have some kind of insider information.
How to Buy
Make sure your up at least 30 minutes prior to the launch time to have everything set up on your computer. Make sure you open up multiple browsers with product page URLs open for shoes that only allow one per customer. Make sure you also have different credit cards and if possible with different billing information. If you’re trying to cop from smaller retailer websites (and sometimes large ones), be prepared for site slowness or crashes. Keep hammering away at the orders and if you’re lucky, one will go through.
Should you flip right away and how should they be listed?
This is a tough one for flippers but you’ll have to know how to gauge the marketplace and at forecasting demand. Another depends on your financial situation since pairs can be hundreds to thousands of dollars. If you’re buying a much hyped general release pair of sneakers, most likely you’ll want to flip right away. Because once the market gets flooded then the price will drop. But if you get your hands on a super limited pair of sneakers, those only go up in value with time. If you can hold then do so and reap the rewards down the road.
General release shoes vs limited edition shoes also determines how you should set up your listing. If you’re selling a general release shoes with more and more supply going up, you’ll want to use a fixed price listing. List it as low as possible and sell it right away. The worse is for you to sell it last when the market value has dropped hundreds. If you have some limited edition sneakers then there is a good chance that your sneakers could start a frenzy where a live auction would be better.
Where to Sell
There are now a few specialized sites for selling sneakers. A new site called Grailed sells men’s clothing only including shoes. The best part about selling on Grailed is avoiding the 10-percent fee eBay takes. But with more specialized buyers, expect to be low-balled at least a few times. They might be buying to flip themselves or just looking to get a new pair for their collection for cheap.
The other new site is called Flight Club which has a huge presence and storefronts in NY and LA. Most of the time they only take new pairs of sneakers unless you’re unloading some rare masterpiece. If you happen to live in LA or NY, then you can drop off your sneakers at their stores. If you don’t then you have to ship your sneakers to them. They will do all the heavy lifting in terms of handling of the selling, shipping and money transaction for you but they do take a 20% cut.
Other good selling places would be of course the tried and true places, eBay and Craigslist. eBay as you know is good for selling anything including sneakers. Make sure you scope your competition. And if you like to deal in person without giving up any of your profit in fees, then list up your sneakers on Craigslist. You’ll have a lot less people interested but it’s worth it if you want a quick cash transaction.
Make Great First Impressions
I talk about the importance of great first impressions in my 4 Insider Tips on How to Maximize eBay Profits
blog entry. Please take a look so you know exactly what to do when listing your sneakers online. Doesn’t matter where, the same principles still applies. But with sneakers, there are a few other things that make a huge impact if you still have them.
Having the original box and receipt is huge. People love original boxes for their own collection and receipt proves if your sneakers are legit. Don’t be worried about showing what you bought the pair of sneakers for, the buyer know you’re making a profit. With anything that is high in dollar value, you might get buyers that ask for a lot of pictures or ask you a lot of personal questions. Do what you can to keep them happy and think about if the role was reversed, would you do the same if you were the buyer?