How to Resell Sneakers and Streetwear Part Two – Business Basics, Ethics, and Tips
How to Resell Sneakers and Streetwear
Part 1: Getting Started
Part 2: Business Basics, Ethics, and Tips
Part 3: Buying
Part 4: Selling
Part 5: What now?
This is a multipart guide aimed to bring value to all kinds of resellers. Whether you’ve been in the game for years or you’re just getting started, this should be useful. If you’re 13 or you’re 30, there is always more to learn.
“Reselling streetwear” refers to buying limited sneakers and streetwear items and selling them to others for a profit. It doesn’t matter when or how you buy the product if you can buy something and sell it for more than you paid you are reselling.
While reading, keep in mind the lessons in this guide can be applied to more than just limited streetwear.
Business Basics, Ethics, and Tips
When reselling sneakers and streetwear you need to treat it like a business. It is! There are some basic things you need to do while running any business.
One of the first things you need to do is create two spreadsheets. One spreadsheet will cover your inventory and sales.
Here is a google spreadsheet template you can use. To duplicate the spreadsheet you should go to File -> Make a copy.
The next spreadsheet you need is one that covers all of your business expenses. This will include any money you spent on the business – PayPal fees, eBay seller fees, logo design, website hosting, advertising, etc.
These expenses take away from your net profit so they are tax deductible. Once your PayPal account reaches $20,000 total revenue and 200 orders in a year you will be issued a 1099-K form issued by the IRS (if you’re in America). It’s incredibly valuable to have all of your expenses in one place to ensure you pay the correct amount of taxes.
If you are just getting started you may feel this is a waste of time. Evaluate the goals you wrote down in part one – what do you want to get out of reselling? If you wrote down big goals, you will thank yourself later for tracking expenses now.
Tracking your expenses and sales is also useful because there are a lot of issues that can arise while reselling. If a customer emails saying they haven’t received their package, you need to be able to quickly look up the tracking number and deal with the situation. When you start to get more orders, organization is crucial.
A new platform designed specifically for organizing your reselling business is coming soon. Copmetrics is worth checking out if you’re looking for something more sophisticated than a google spreadsheet.
Business Ethics + Tips
Another important aspect of running a business is the moral code you will follow. You will deal with pushy customers, scammers, and everything in between. Knowing how to deal with these situations correctly will determine whether or not you’re successful.
The customer is always right, even when they are wrong. Whether you’re dealing with a pushy customer or a regular, you need to be polite. Appreciate every single customer supporting you and your business. Never be rude and always try to help.
A good customer experience can lead to a better reputation and more exposure for your business. You never know when being polite to the right person will pay dividends, so be polite and helpful to everyone.
Even if you’re dealing with hundreds of orders at once, take the time to reply to every single email and message you get. Don’t complain about it. What is there to complain about? You have too many customers? You have too many people supporting you?
A single conversation can lead to a lifelong customer or life-changing opportunity.
Keep your word
Keeping your word is tremendously important to a successful business venture. Situations will arise such as the following:
You buy a pair of Yeezys on release day and list them for sale. You receive an offer for $750 and accept it. You send the buyer an invoice and they pay right away. An hour after making the sale, you receive an offer for $850 from another interested party that was late to reply.
The $850 buyer is ready to pay. They’re offering you $100 more, and you haven’t shipped the shoes yet. You refund the $750 buyer and take the extra hundred, right? No. Never cancel a transaction in order to get more money elsewhere.
You can learn a few things from this kind of situation. Customer satisfaction is #1. You aren’t losing a customer if you say no to the $850 buyer, you’re just telling them the shoes are sold already. They’ll be back next time. However, if you canceled the $750 buyer’s order, you would lose a customer.
This type of situation also shows that patience pays off. If you were looking for the extra $100 short term, you don’t have enough patience.
Scammers are very prevalent in the world of reselling because there is money everywhere. If you are scamming people you’re probably looking for a short-term solution to a financial issue. This will ruin your reputation and makes it impossible to have long-term success. Never work with scammers, buy from scammers, or scam.
The dishonest scammer will never, ever do the numbers honest businesses are doing. If they do, those numbers will not last. If you get scammed take the loss and move on. If your “friend” steals $100 from you, look at it this way – It only cost $100 for you to get that person out of your life!
Don’t say yes right away
Building business relationships can take time. Don’t be so quick to work with the first person that you can. Just because you have the chance to secure Yeezys at a bulk price doesn’t mean you should. Take the time to figure out more about the other parties involved.
Do they have a good reputation? How well is their business doing? How do they come across when speaking to them? These things can help you decide if this is a person that’ll actually help your business.
To summarize this section, doing the right thing is always the right thing. Figure out how you are going to run your business, how you’ll treat customers and situations. Stick to your plan and be patient, this will pay off eventually.
This is part two of a five-part guide on How to Resell Sneakers and Streetwear. Part three will be linked to this article once it is complete.
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