The sneaker resell market had always been around, but during 2020 the market blew up. Due to the pandemic, supply chain issues, and retailers changing their release approach. Sneaker resellers become more prevalent.
Before SNKRS App or online raffles people had to wait in line for a pair of sneakers. When online sneaker drops grew this meant being able to click the buy button faster than everyone else.
This brought about the bot. The sneaker bot allowed people to buy sneakers at lightning speed and in large quantities. With a little savy programming anybody could become a a reseller. Let’s take a look at how the resell market is becoming a thing of the past.
Oversaturation
The market is flooded with resellers, both seasoned veterans and newcomers looking to make a quick buck. With more competition than ever, it’s increasingly difficult to secure limited-edition releases and command high resale prices.
Brand Intervention
Sneaker brands are cracking down on sneaker resellers by implementing measures such as limited edition releases, raffles, and anti-bot systems to ensure genuine fans have a fair chance at purchasing coveted kicks at retail prices. This diminishes the reseller’s ability to acquire large quantities of in-demand sneakers.
Fluctuating Demand
The demand for certain sneakers can be unpredictable, leading to fluctuating resale prices. What was once a hot commodity can quickly lose its appeal, leaving sneaker resellers stuck with inventory they can’t move at desired prices.
Rising Costs
Securing limited releases often requires investing in bots, proxies, and other tools to beat the competition, driving up overhead costs for resellers. Factor in shipping, storage, and platform fees, and the profit margins become increasingly slim.
Ethical Concerns
The sneaker community is becoming increasingly vocal about the negative impact of reselling on genuine sneaker enthusiasts. Many argue that resellers contribute to exclusivity and inflate prices, making it difficult for true fans to get their hands on the shoes they love at retail prices.
Counterfeit Risks
With the rise of counterfeit sneakers flooding the market, buyers are becoming more cautious, making it harder for resellers to offload their inventory without being subject to scrutiny and potential legal ramifications.
Market Saturation
As the sneaker resale market becomes more saturated, the perceived value of sneakers as investment assets may decline, leading to decreased demand and profitability for resellers in the long run.
In conclusion, while sneaker reselling was once a lucrative endeavor, the landscape has shifted dramatically, making it a challenge to thrive. From increased competition to brand intervention and ethical concerns. Resellers face numerous obstacles that make it difficult to turn a substantial profit. As the sneaker industry continues to evolve, resellers must adapt their strategies or consider alternative avenues within the market. For more sneaker new check out these upcoming releases.
