Here, we show you how to become a shoe reseller, focusing on all the processes involved in setting up thriving operations. So, does sneaker resale sound like something you’d want to do?
Shoe resale can be profitable when done strategically. This requires basic knowledge of what it takes to get into the business, understanding the market forces, etc.
How to Become a Sneaker Reseller
If yes, you’ll need to read along as we’ve highlighted the basics, such as having a plan, the startup costs, risks associated with the business, and marketing strategies to adopt.
Also, you’ll find information on sourcing inventory, keeping abreast of industry trends, adapting to them, customer service strategies, etc.
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How Profitable is Shoe Reselling?
Profitability is vital for any investor seeking to go into any business activity. In other words, you’ll need to assess the viability of the business in terms of demand and sales.
Without a doubt, shoe reselling can be profitable when done right. Here, the responsibility for how it goes (regarding profits) rests solely on your shoulders as the business owner.
Making profits as a shoe reseller depends on how well you understand the business and the market. Also, your strategies will determine how much sales you make.
Here, location, marketing, pricing strategy, product demand, taxes, financial management, risk management, operating expenses, business environment, and cost of goods sold all play vital roles in determining sales volume and profitability.
To Become a Successful Shoe Reseller
Becoming a shoe reseller involves several responsibilities, including planning, working out startup costs, and assessing risks. What partnerships are there to take advantage of?
A marketing plan, finding reliable suppliers, having efficient marketing strategies, and knowing the pros & cons of online and offline sales are ways to start on the right footing.
i. Draft a Business Plan
To start a shoe reselling business, an effective plan must be drafted. This is the blueprint that contains business strategies and must be taken seriously.
In writing your shoe store business plan, key sections must be covered.
These include the executive summary, business description, products & services, market analysis, strategy & implementation, organization & management team, and the financial plan & projections sections.
ii. Work Out Startup Costs
It isn’t easy to know how much is required to launch a shoe reselling business without working out the costs involved. To determine the amount required, you’ll have to identify startup expenses.
These may include legal & accounting fees, equipment, marketing, inventory, rent or mortgage, utilities, insurance, and shipping costs. Note that these costs will vary based on need.
iii. Assess the Risks Involved
Are there risks associated with starting a shoe reselling business? Every business has risks, and you’ll have to identify yours.
Besides high competition, which can make it difficult to stand out, other possible risks associated with this business include market volatility, double or high taxation on profits, counterfeit products (shoes), and fraud.
Shoe reselling businesses catering to international clients may face high shipping costs, significantly affecting your profit margin. Market volatility is also a threat to business operations.
These risks must be identified and considered before setting up your operations. This action allows you to anticipate and plan for such scenarios, thus helping you better manage your business.
iv. Explore Partnership Opportunities
Shoe reselling is a business that thrives on partnerships. Obtaining inventory and reselling means you’ll have to do business with others.
Here, retailers, sneaker consignment stores, sneaker authentication platforms, bloggers & influencers, distributors & wholesalers, brands, online marketplaces, brand ambassadors, and other businesses are likely partnerships that may work to boost your business and sales.
v. Have a Marketing Plan
Marketing is tied to sales and cannot be overlooked when setting up your shoe reselling business. Your marketing plan should outline your marketing strategies and goals.
A good plan should include the executive summary, marketing objectives, situational analysis, marketing timeline, marketing budget, evaluation, and marketing objectives.
Marketing tactics should also be added to this plan. If you have no idea about writing a marketing plan, consider seeking professional help.
Here, marketing consultants, agencies, and freelance writers can help create a comprehensive marketing plan for your shoe reselling business.
vi. Find Reliable Suppliers
Suppliers play a strategic role in shoe reselling by helping such businesses find quality inventories. Finding the most reliable suppliers to work with becomes necessary based on their roles’ importance.
Ways to do so include research, networking with similar businesses, use of online resources, and attending trade shows & conventions.
vii Marketing Strategies are Crucial
Effective marketing strategies help create awareness for shoe reselling businesses. You’ll have to adopt word-of-mouth and content marketing to leverage such advantages.
Other strategies include loyalty programs, online advertising, business collaborations, customer referral programs, and email marketing.
viii. Know the Pros and Cons of Brick-and-Mortar and Online Sales
To start a shoe reselling business, you’ll need to know the pros and cons of operating brick & mortar locations and online-based companies.
Some businesses adopt both strategies and do well. When setting up, online-based shoe reselling companies tend to cost less than brick-and-mortar operations.
ix. Choose a Business Structure
Have you considered choosing a suitable business structure yet? You’ll need to.
Here, several considerations come into play, such as the amount of control you wish to have, the number of owners, the future growth of the business, and the tax implications of each structure.
Options you have include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
x. Develop Vital Skills
A range of skills are needed to run a successful shoe reselling business. These include retail experience, business acumen, and customer service skills.
More required skills include knowledge of the shoe market, patience, negotiation, and marketing skills. Your chances of success are boosted when these skills are acquired.
xi. Get Registered and Obtain the Necessary Permits
Getting registered and obtaining the necessary permits are among the requirements for getting started. Now, the types may differ based on your location.
That said, different types include resale licenses, business licenses, occupancy permits, sales tax permits, and zoning permits.
Your state’s Department of Commerce or the Small Business Administration (SBA) are places to inquire about registration requirements.
Starting a shoe reselling business will require following all the steps outlined above. It’s necessary to make adequate preparations through research to make informed decisions.