Resellers guide to Success
Reselling shoes have become the Kickstarter for the year 2020. Covid-19 has caused a lot of problems throughout the year. A lot of businesses have either shut down or reduced their services by 50%. Because of this a lot of people were put out of work and are solely relying on unemployment. Considering that people are at home, more people are purchasing products online, thus creating a revenue flow for resale.
There are many different business models used in the resale business. In this blog, the focus is on the 2 main models Arbitrage and wholesale,. There are pros and cons to each one, however each model is proven to be very profitable and consistent.
Retail arbitrage is the act of purchasing a product from a store and reselling that product on a 3rd party market place such as Amazon, Ebay or Walmart. This is a profitable way to make money because you can buy things that are valued cheaper in store and sold at a higher price online (depending on the condition)[1]. For example, A clean pair of Jordan's are sold in a thrift store for 25 dollars. Online those exact pair are sold for 200 dollars. If sold the seller makes 175 dollars which is a 600% return on interest. The disadvantage about this model is searching for the right products can be difficult and there is always competition.
Wholesale is a more expensive model. The Online wholesale reselling business is a difficult, but rewarding. There are many ways to achieve success using this model. The idea is to buy as many of the same shoe as possible and sell at resale price. For example, The "Turbo Green" Jordan 1's at retail cost 120$. Considering that most stores only allow certain amount of shoes to be sold to one person, using online "bots" will help make that purchase[2]. Once 10 or more shoes have been purchased, you wait until the price of the shoe increases. In 2020, shoe prices increase and decrease like stocks depending on the hype of the shoe. Once the price increases, you sell the shoes for profit. In this case, 10 pairs or turbos green Jordan 1's cost 1200$. In return, if sold on the new price (which is 534$) the ROI is 231%, therefore each shoe will profit 289$ totaling 2890$ in profit. The disadvantage about this model is the competition and the expenses. Most times you would have to purchase from other resellers early if the shoe has sold out in stores. Which will make it more expensive starting out and the returns less rewarding [2].
There are a-lot of opportunities available in today's society to make money. Since the USA is the biggest consumer in the world, why not take advantage of the opportunities to make more money?
[1]Ugino, Michael. “Why Retail Arbitrage Won't Help You Scale Your Business.” Sellbrite, Sellbrite, 19 Nov. 2019, www.sellbrite.com/blog/retail-arbitrage/.
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