Requirements
Sneaker TradingRequirements for Starting a Sneaker Trading Sidegig
Essential Equipment
- Smartphone with reliable internet Essential
- Computer/laptop for monitoring releases Essential
- Storage solutions (clear boxes, shelving) Essential
- Shipping supplies (boxes, tape, labels) Essential
- Authentication tools (blacklight, magnifying glass) Recommended
- Bot software for competitive releases Optional
Required Skills
- Market Research: Ability to identify profitable sneaker models and predict market trends
- Authentication Knowledge: Ability to distinguish authentic sneakers from counterfeits
- Digital Literacy: Proficiency with online marketplaces, apps, and payment systems
- Inventory Management: Organization skills to track purchases, sales, and profits
- Networking: Building relationships with other resellers and retail connections
- Time Management: Ability to monitor release dates and respond quickly to opportunities
Startup Costs
| Expense Category | Estimated Cost | Notes |
|---|---|---|
| Initial Inventory | $1,000 - $2,000 | Capital for purchasing 5-10 pairs to start |
| Storage Solutions | $100 - $300 | Clear boxes ($5-10 each), shelving units |
| Shipping Supplies | $50 - $100 | Boxes, tape, labels, packaging materials |
| Authentication Tools | $30 - $100 | UV light, magnifying glass, reference materials |
| Software Subscriptions | $50 - $150/month | Release monitors, cook groups, inventory tracking |
| Bot Software (Optional) | $300 - $5,000 | One-time purchase or rental for competitive releases |
| Total Minimum Startup | $1,230 - $2,550 | Excluding optional bot software |
Note: Successful sneaker trading requires significant upfront capital. Starting with at least $1,500 is recommended to purchase enough inventory to absorb potential losses and capitalize on multiple opportunities.
Legal & Regulatory Requirements
Business Structure
- Sole proprietorship (most common for beginners)
- LLC recommended when scaling beyond $3,000/month
- Business license (may be required in some localities)
Tax Obligations
- Self-employment tax (Schedule C filing)
- Quarterly estimated tax payments
- Sales tax collection (varies by state)
Important: Platforms like StockX, GOAT, and eBay now issue 1099-K forms for sellers with $600+ in annual sales. Keep detailed records of all purchases, sales, and business expenses for tax purposes.
Platform-Specific Requirements
| Platform | Account Requirements |
|---|---|
| StockX | Valid ID, bank account, credit/debit card, address verification |
| GOAT | Valid ID, bank account, PayPal account, address verification |
| eBay | Valid ID, bank account, PayPal account, seller limits for new accounts |
| Grailed | PayPal account, identity verification for high-volume sellers |
Recommended Qualifications
Knowledge Base
- 1 Familiarity with sneaker brands and models
- 2 Understanding of sneaker release patterns
- 3 Knowledge of authentication details for popular models
- 4 Awareness of seasonal trends and market fluctuations
Community Integration
- 1 Membership in sneaker communities (Discord, Reddit)
- 2 Relationships with other resellers for information sharing
- 3 Connections with retail employees (helpful but not required)
- 4 Access to premium information groups (cook groups)
Pro Tip!
Start by focusing on 2-3 specific sneaker models or brands rather than trying to cover the entire market. Specialization allows you to develop deeper expertise in authentication and market patterns for those specific products.
Consider allocating 70% of your initial capital to "safer" releases with moderate but reliable profit margins (Jordan 1s, Dunks, Yeezys) and 30% to higher-risk, potentially higher-reward limited collaborations.