Introduction
The craze for exclusive and high-quality footwear among buyers has led to an unprecedented rise in sneaker reselling, as what was once an uncommon pastime has evolved into a billion-dollar industry. In essence, sneaker reselling involves acquiring sneakers through legitimate channels and then selling them later at significant markups. Several methods can be used to achieve this objective, including social media platforms and physical stores. It is not uncommon for resellers to wait outside stores for hours and sometimes even days to purchase a limited release.
The rise of sneaker resale has had both positive and negative effects. However, entrepreneurship in the sneaker industry has opened up new opportunities for those who wish to pursue their passion and make a living. In contrast, it has given rise to an overtly cutthroat marketplace where price surges may occur unnaturally, and entrance into exclusive release events is typically granted only to people with greater wealth. Through its constant evolution and expansion, the sneaker reselling sector remains an intriguing intersection between fashionistas, entrepreneurs, and customers.
The History of Sneaker Reselling
In the last thirty years, there has been a significant increase in growth within the shoe reselling industry. As sneaker enthusiasts from around the globe began exchanging rare pairs during the late 1980s, this is where everything began (Reinhold, 2020). Sneaker club establishments prior to 1990 facilitated these transactions and created opportunities for well-planned resale (Reinhold, 2020).
The burgeoning sector experienced unstoppable growth since then, and soon afterward, frameworks comparable to eBay made it possible for individuals specializing in sneakers or sports shoes to generate revenue from e-commerce transactions (Reinhold, 2020). Those with an understanding of market trends and good design skills could easily start profitable businesses, thanks to the widely available internet across the globe and sites like Stock X, which makes it more straightforward to flip sneakers for profit (Flores, 2020). This further increased the popularity of reselling and enabled a larger number of people to participate in it.
The emergence of the hype beast trend made the 2010s an iconic decade for sneaker culture. This was mainly attributed to celebrities like Kanye West, who highlighted sneakers as a fashion accessory rather than just athletic footwear. In return, the influence of celebrities made people realize the sneaker value as a highly sought-after commodity, and therefore, it can be resold for large sums of money (Yousef, 2022). With digital technology at their disposal, sneaker collectors could easily monitor and acquire rare footwear to expand their collections even further (Park et al., 2022). The passion for sneakers that led to the creation of dedicated forums and websites has resulted in a strong sense of community amongst its members, which is why the sneaker resale industry continues to thrive.
The growing demand for rare and limited-edition sneakers has further driven the sneaker reselling industry. People now strive to be the first to access a new shoe model as soon as it is released. Resellers have capitalized on this trend by using bots to jump the queue and purchase exclusive shoes in bulk (Weinhold, 2020). Furthermore, resellers are employing various strategies, including creating fake accounts and forming partnerships with retailers to obtain access to specific models (Flores, 2020).
There is great potential in the sneaker reselling market, as more people engage daily, leading to increased demand for rare sneakers and record prices for some of the most coveted shoes. Most resellers are now following the trend of buying large quantities of exclusive sneakers using bots to bypass waiting lines (Reinhold, 2020). Thus, the sneaker reselling industry has been driven by the increased desire for exclusive and rare sneakers, leading to the adoption of various tactics by resellers, such as bots, to purchase these shoes in large quantities and at premium prices.
Sneaker Reselling Market
The global sneaker reselling market has gained significant influence in the retail sector. Ahuja (2020) estimates that the sneaker reselling market was worth nearly $6 billion in 2020 and is expected to grow to $14.2 billion by 2025. This market enables customers to access rare and exclusive sneakers that are not readily available from primary retailers, as noted by Slaton and Pookulangara (2021).
The industry’s success is primarily driven by consumer demand for limited-edition and exclusive sneakers, fueled by celebrity endorsements, digital media campaigns, and increasing access to digital platforms for purchasing sneakers. Kulinicheva (2021) examined the phenomenon of sneakerheads as fans and sneaker fandom as participatory culture, highlighting the unique subculture surrounding sneaker collecting and reselling. The sneaker reselling market has become a platform for fans to engage in participatory culture, connecting with other fans and expressing themselves through various forms of self-expression. Furthermore, Ens et al. (2023) examined the dynamics of control on digital platforms and its impact on the sneaker reselling market. They emphasized the importance of digital platforms in facilitating transactions in this market, while also highlighting the need to address issues related to authenticity and trust.
In recent years, the sneaker resale market has witnessed a notable shift toward collaborative consumption models. Burgess (2020) notes that hip-hop culture has significantly driven this trend, as consumers have highly sought collaborations between sneaker brands and hip-hop artists. Additionally, Choi and Kim’s (2019) research has demonstrated that a strong brand community has developed among “sneakerheads”- enthusiasts who collect and trade rare and limited-edition sneakers.
Within the collaborative consumption models of the sneaker resell market, Slaton and Pookulangara (2021) have identified three categories: self-service, facilitated services, and full-service. Self-service involves direct peer-to-peer transactions through online platforms, while facilitated services involve third-party authentication services to ensure product authenticity. Full-service models involve a third party overseeing all aspects of a transaction, from sourcing the products to delivering them to customers. Advancements in technology and digital infrastructure have been a driving force behind the increasing acceptance of collaborative consumption models.
The sneaker reselling industry shows no signs of slowing down and is expected to continue its upward trend. Artificial intelligence software has emerged as a crucial tool for sneaker resellers in recent years, enabling them to acquire high-value products. Through data collection and analysis of the primary retail market, AI software can identify the most profitable items and quickly purchase them (Breebaart, 2022). This has enabled resellers to purchase products more quickly than ever, often at discounted prices.
AI technology has also enabled sneaker resellers to expand their businesses by selling items internationally and reaching new customers in different markets. However, it is essential to note that not all sneaker resale transactions are through secondary markets. According to BoPing’s (2021) research, many buyers prefer to purchase from primary retailers due to concerns about authenticity, product quality, and customer service. To ensure long-term success in the sneaker resell industry, sellers must prioritize customer satisfaction and maintain high standards for product quality.
Platforms for Reselling
Stock X
Over the past few years, StockX has established itself as a leading player in the sneaker resale culture, enabling individuals to buy and sell popular items at competitive prices. Referred to as the ‘stock market of things’ (Raditya et al., 2021), StockX is a significant player in global resale, offering rare and limited-edition shoes and apparel deals. On this platform, buyers can bid for products in an auction-style process, while sellers can list their items for a fixed cost or accept the highest bid.
StockX verifies all of its items to guarantee customers receive genuine goods before they are dispatched (Matthews et al., 2021). This ensures that purchasers won’t be disappointed with their purchases. StockX provides detailed price analytics on sneakers and apparel, enabling customers to make informed investment decisions. On top of that, its user-friendly interface makes navigating the website a breeze. StockX is an excellent choice for sneakerheads and resellers alike.
When it comes to buying and selling sneakers, StockX has emerged as a popular platform. However, Bonfanti and Yfantidou (2021) note that a memorable in-store customer shopping experience is still essential for sports equipment retailers. That said, StockX has limitations, which buyers should know before using the site. Slaton and Pookulangara (2021) highlight that the popularity of StockX has led to inflated prices due to increased demand. Furthermore, the platform does not guarantee purchases, exposing buyers to potential risks. As a result, buyers should conduct their research and exercise caution to get the best deal possible and minimize any associated risks.
Restocks
Restocks is a widely used platform for trading in sneakers and exclusive clothing. Its “alerts” feature notifies users when new items become available, allowing them to purchase products before they sell out (Backs et al., 2020). Additionally, Restocks’ mobile app makes it easy to access the website on the go.
Whether looking for hard-to-find pieces unavailable in stores or planning to resell your goods, Restocks will help buyers and sellers alike. However, customer trust is essential for successful transactions without fraud, so Restocks relies on ratings and reviews to build confidence (Musana & Basaza-Ejiri, 2020). Moreover, buyers can add an extra layer of protection by using third-party payment processors like PayPal or Apple Pay to process payments.
The Restocks platform is a prime example of how technology can foster the growth of a distinct subculture centered on reselling exclusive fashion apparel and footwear and unite individuals who share a passion for music, sports, and fashion. According to Musana and Basaza-Ejiri (2020), the Restocks platform provides a secure and effective way for buyers and sellers to conduct transactions for rare items, building trust.
Moreover, Restock’s mobile app makes it convenient for users to find and purchase these items within minutes. A study by Dolbec and Parmentier (2023) highlighted how resale has monetized desire, and the Restocks platform is an excellent example of this phenomenon. Restocks has successfully established a market that satisfies the high demand for rare items, resulting in elevated resale prices. This has created a situation where purchasers are willing to pay a premium to possess these sought-after items.
eBay
eBay is a highly popular online marketplace where users can buy and sell various products. Established in 1995, it has since become a leader in the second-hand market. According to Altaweel & Hadjitofi (2020), eBay provides buyers and sellers worldwide with items like antiques and limited-edition sneakers.
The platform also includes feedback mechanisms such as ratings and reviews, which have been found to influence sellers’ decisions (Dib et al., 2019). Additionally, collectors benefit from eBay’s ability to locate rare items unavailable on other sites (Lee et al., 2021). In conclusion, eBay allows buyers and sellers to conveniently conduct their transactions, making it one of the go-to sites for second-hand reselling.
Recent research indicates that eBay remains a popular and reliable platform for buyers and sellers due to its vast selection of items, efficient transaction processing, and trustworthy feedback system (Wirtz et al., 2019). eBay’s high activity level makes it a crucial tool in the secondary market for facilitating transactions and providing users with a dependable platform (Alaei et al., 2022). Furthermore, a recent trend in e-commerce research involves exploring the connection between social and sharing commerce. This approach highlights the significance of integrating social media into e-commerce strategies, as Attar et al. (2022) demonstrated. By adopting this strategy, businesses may enhance customer involvement, cultivate brand allegiance, and boost revenue.
Conclusion
Sneaker reselling has become a vast industry worth billions of dollars and has both positive and negative effects. The rise of sneaker reselling began in the late 80s, as sneaker enthusiasts worldwide started exchanging rare pairs. Before 1990, sneaker clubs enabled these exchanges and provided a foundation for organized resale. Rising demand for rare and limited-edition sneakers has propelled the resale market even further, with enthusiasts eager to obtain new releases immediately. The 2010s became a defining era for sneaker culture due to the hypebeast trend, and celebrity endorsements, including figures like Kanye West, have amplified its popularity.
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