The Rise and Fall of the Resell Market: What does it mean for you?

With the rise of social media, fashion, and celebrity influence, it became inevitable that brands like Nike, Adidas, Puma, Off-White, Supreme, etc. would take advantage of these social factors. Not only did the brands see an opportunity to push product through platforms like Twitter or Instagram, they found a way to make exclusivity a promotion of the brand, and through that, a raising of prices for models that have been around for year. Naturally, with a lower supply, and a higher demand, resellers came about, to push that retail price even higher to what economists call the “true market value.” It started as knowing a “sneaker plug” locally and paying a range of fees for a variety of shoe models, mostly Jordans. As many know, the reselling market, as well as collaborations, exploded from there.

At this point brands took notice to the rising popularity of certain models, and how exclusivity took color ways that were bland and re-used, to a whole other level, making them hot commodities on the market. Now the question is: how does this move affect the average sneaker-lover? The answer is “budget color ways.” You may notice more and more that when exclusive sneakers sell out, Nike or Adidas releases similar models with the exact same colors. This is the major corporations pushing weaker models through similarities with their more hyped models. Take a look at the YZY 350 Oxford Tan and the Adidas Tubular low:

Back to reselling, older resellers can attest that the growth of collaborations and the idolization of making money of reselling is pulling in the younger generation to simply flip shoes with no deeper understanding of why shoes are popular, or how to hold shoes for their hype to grow again. These resellers are also known as panic sellers, who sell the shoe the minute they get the order confirmation for a mere $5 profit. The fear of losing money has pushed younger panic sellers to try to make any profit possible, as long as its guaranteed. And they even cancel their orders if they don’t sell before the shipping confirmation.

Now, how can you take advantage of it?

If you’re a reseller, hold as long as you can; prices will go up and the market will respond to those who hold and reward according. If you’re not a reseller, take advantage of panic sellers but buyer beware: your order may get cancelled and the price can go up by the time you find out, so it may be better to wait until the market evens itself out.

That’s it today for The Twelve Hub Blog, for future shock drop info, release dates, and all your size 12 needs, come back as often as you think about sneakers.