The Secrets of a Successful Six Figure Shoe Reseller

This is Allen Kuo. He’s standing in front of about $200,000 worth of shoes.

Watch his story here.

In this incredibly inspiring video, he is threatened by his parents to stop selling sneakers and to continue his college education.

He makes a deal with them:

If he doesn’t have $100,000 stacked up within the next year from selling sneakers, he would quit and go back to school.

He reveals that he had won the bet and now is one of the top sneaker resellers, after just a little over one year in the game.

Imagine being able to sell sneakers as your full time job.

With the value of a college education becoming more and more questionable, it is worth pursuing other options. Kuo made the jump and over time he succeeded.

Even if you don’t resell sneakers for long or if it isn’t your intention to reach a level that Allen Kuo did, selling sneakers teaches you valuable skills in entrepreneurship. He tells his personal story of building up bank in the 20 minute video. Here are some takeaways from the video with a legendary reseller.

4 Rules to Kuo’s six figure success.

Rule #1: Don’t smoke your own supply!

This statement for sure will get a lot of hate in the sneaker reselling community, but it’s one that is critical to your success if you want to quickly reach profitable levels in selling sneakers. So be careful with being public and open about this attitude, for the most part, keep it to yourself.
A lot of people hate resellers, even if they themselves are reselling. I mention this again because it is quite important: when dealing in person, keep this mentality on the low for sure or else you risk losing customers and your reputation! People would rather deal with one of their own than an outsider, so learn and immerse yourself in the sneaker culture, including in the verbage, lingo etc (**link to ebook purchase**), and provide value in the interaction, maybe by mentioning a future release that they didn’t know about, or about other shoe models that you have or have had in the past.

In the video, Allen mentions that he doesn’t himself like these shoes that he is selling. Although he doesn’t say this directly, this is critical to his success. Many make money reselling, yet all of their profits are funneled right back into the stuff that they’re selling, so in the end it’s a wash and they end up with little cash but usually a large collection worth thousands of dollars that they are not willing to sell. If it is your intention to have a couple thousand dollars in the bank account, it is incredibly attainable given that it’s common to see kids with a shoe collection worth thousands of dollars that they have accumulated with the help of reselling in as little as a year. So you have to ask yourself: What is cooler, having a collection of shoes worth $10,000, or actually having $10,000 in cold hard cash in the bank??

Rule #2: Practice the magic of compound interest
Did you know that $200, compounded at a 20% profit and reinvested 8 times, equals $860? And that if you reinvest that $860 another 8 times at the same return on investment, it becomes a whopping $3,697? This is the power of compound interest and reinvesting your profits! Allen talks about how he started with a small amount of shoes then worked up to a larger collection. Many people in finance and in the stock market will speak about this simple concept and how it can increase your portfolio over the years into retirement. However, the great thing about selling sneakers is that you can make gains of much more than 10% and reinvest much more quickly than yearly. Once you know what shoe models to buy and how to secure them and sell them quickly, you can double your money in a heartbeat! This is how Allen reached the account of six figures to prove his parents wrong about selling sneakers. Of course, when you get to the higher levels you need to practice precautions. If you want to REALLY make money, you have to learn not to cash out at all; think of it as a snowball that even when it’s big you don’t want to take away from it so you can make it bigger.

Rule #3: Start building your network
The easiest way to build your network today is to talk to every person you do business with . What I mean is, don’t simply do a business interaction with them, casually chat in a way meant to build rapport. So if you buy from someone on eBay, or if you conduct business with someone in person, simply ask if they have more shoes that they’d like to buy or sell. This will give you a gauge of how serious of a reseller they are. If they seem like someone you’d like to continue to do business with, get their contact info, preferrably their cell phone number. You never know who you might sell to: I have sold to professional atheletes and extremely wealthy kids before, all by going one step beyond simply selling and by adding the networking aspect. A protip: if you can afford it, purchase “heat”, as this will quickly build your reputation.

Rule #4: Operate like a businessman.
From my experience in other realms of business, sneakerheads are some of the flakiest, most difficult-to-communicate-with people to deal with. It is refreshing to deal with someone who operates in a business like manner, so your customers or your hook ups will be more likely to remember and come back to you for more.
In short, stay true to your word. When buying, be on time, have the money on you in the amount that you agreed on. When selling, be on time, have the shoes in the condition that you advertised them in. Present your shoes neatly and professionally in pictures, be ready to heed to the buyers request, like sending tagged pics (pictures of the shoes including a piece of paper with something written on it to prove you have the shoes).

So there you have it! The 4 rules that Allen used, the same rules that I used to scale the sneaker business to 5 figures.

In the full reseller’s field guide, you will have a crash course on the sneaker models that will ensure you don’t sound like a fool when reselling! It took me thousands of dollars in mistakes and nearly a year of experience to gain this knowledge , and this guide would have been so helpful in the beginning, so that’s why I put it together for all those who are brand new to reselling sneakers.

Also, be sure to check out the  YouTube channel for a bunch of free advice on the ins and outs of selling kicks!

As always, take care and I wish you all the best!

-JVG

The Best Basic Tools and Materials for an Efficient Arbitrage Operation!

What’s up guys!

I dropped a new term in this title, and that is arbitrage. Arbitrage is simply the process of taking advantage of price differences in a market to profit by buying low and sell high. One of the most effective ways to play this profitable game is to secure limited items from lesser known sources and to distribute them independently online.

Let’s get into the dirty work of the actual distributing, given that you have put in the homework and built the knowledge base to secure these rare goods. You’re a professional, man! So you will want to be equipped with the right tools to have an efficient operation. The more professional you are about this hustle, the more likely you are to succeed. So if you want to make more than just a few bucks and more like a few thousand dollars a month selling shoes, you need the correct toolbelt!

I remember being newer to selling kicks and whenever I would sell a pair online, whether directly through social media or through sites like eBay or GOAT, I would be simultaneously super pumped that I brought in a couple hundred dollars and roll my eyes and fret over the fact that I have to actually pack and ship the item.

This is the part of entrepreneurship that people don’t really talk about, the non glamorous, day to day mundane things like properly packaging and shipping out a pair of shoes in an accurate and efficient manner to ensure great customer service and less of a headache for yourself once you have a nice method you can go to every time you prepare to send a shipment out the door! The easier you can make these tasks, the more easily you can operate on a daily basis, and the more easily you can scale your shoe game.

I remember that I would literally just show up at the post office with my shoe box and the buyer’s address, and scramble there for materials to ship my shoes. I would either overpay for all the boxes, tape, and even the shipping, or I would be unsuccessful altogether at the post office and have to scramble over to some department or hardware store nearby to try and find some shoe reselling materials. Sometimes this would delay my shipment another day, and when you’re dealing with thousand dollar kicks like Yeezy’s, 1 extra day makes the difference between decent customer service and excellent customer service that’s memorable and causes repeat business.

The ideal method, and the method that I’m at now, is that you have all of the prep materials at home and you can quickly ready your kicks into a nice package and simply drop off your prepaid package at the post office or even schedule for a pick up. Don’t ever wait in line at the post office, and don’t ever pay full price for shipping (more on that in a bit.)

Here are a couple tools that will make your life a WHOLE lot easier.

 

  1. Shipping scale

Each package weighs differently and if you’re a noob with online sales and shipping, you might not think about how weight affects the price of the shipping for your item. You probably are used to just going to the post office and having them weigh it. Also, if you are just guessing the weight with the hopes of it being right, you are risking the chance of you underpaying for the package and having the post office sending it back, which will totally lose your customer and might even cause a refund request. So make sure you have the accurate weight so you’re not over or underpaying for package!

The scale above is the one I use. You can just go on Amazon and search whatever one you want, but this one has been sufficient for me and is the perfect size and fairly priced.

2. Boxes

uline.com check it out guys! These boxes above will fit most shoes and are priced well, and are just one of their MANY sizes.They even have boxes that are adjustable in size that you can customize. They’re also way cheaper than the boxes you’ll find in  the post office, and more of a custom size that is fit for shipping a shoebox. I remember reusing boxes from old Amazon purchases when I was new to reselling and cutting them down to fit the size of the shoe box, and although it worked functionally, I got occasional complaints and had to use way more tape. So have a process and buy at least 25 boxes! Not only will this make your life a whole lot easier, but it can give you a goal to work to use up all the boxes, and you’ll be surprised how quickly you can start running out of 25 boxes every month or even every week when you start moving the right shoes.

3. Bubble wrap

This is a really nice touch.It’s $20 for 350 feet of it, so it’ll take a while to run out. everyone does this so it’s memorable. I like this black bubble wrap to make it even more memorable. In fact, some online retailers don’t even do this, they just throw the shoe box right in the other box. Take the time to bubble wrap the shoebox before you throw it in the shipping box so the box arrives in absolute pristine condition. I remember a time when I received a pair of Yeezy Boost 750’s (super big and heavy shoe/box) from an eBay seller and he just threw it in another box and the Yeezy shoe box arrived damaged. I was really disappointed with this and made a note to never do business with him again and left him a neutral review on eBay. Don’t be that guy! Be someone that customers want to do repeat business with. Some people even throw in personal cards or thank yous but I personally think this is cheesy and have never done it but still had repeat buyers.

 

4. Tape!

I use this stuff. It’s easy to dispense. You can buy a 4 pack of refill tape for less than $10 at a store like Walmart. Way, way cheaper than the tape sold at your post office.

5. USPS online account!

OK this really isn’t a physical material, but having an account will give you 20% off shipping when you print a prepaid label through their site. When shipping can cost $20, this is a $4 savings, which adds up when you’re moving shoes. When you sell through eBay they offer the same discount through USPS, so just be sure to print your label at home.


So that’s about it for the physical materials. One thing I did omit was a label printer which will save you printer paper and tape, but for a newer reseller and for the sake of simplicity and the upfront investment, I decided not to mention it but Brother makes a pretty good printer for about $70, but the labels are on the more expensive side.

All the materials I listed can be had for less than $100 total, and the time you’ll save and the new professional mindset you’ll develop because of these shoe reselling materials makes these purchases well worth the investment. With the correct knowledge and mindset you are now well on your way to making thousands reselling Yeezy’s and Jordans and all kinds of shoes!

Take care and as always, I wish you all the best!