The sneaker industry has been through some things over the past couple years.

You cant ignore changes in the market, though.

As demand shifts, you have to adjust your business strategy.

A giant shoe shape is made out of old shoes.

Today well delve into the smartest ways to start your reselling side hustle in 2023.

In the time since 2020, a lot has changed.

Ye went off in new and alarming ways, forcing adidas to reconsider the terms of their Yeezy contracts.

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Commodities like designer sneakers arent a need, so not as many people are spending money on them.

The changes have been radical, but that doesnt mean that flipping sneakers is a futile effort.

Youll just need to approach things a little differently as you build your business to accommodate the shifting market.

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No Interest Til Almost 2027?

A post shared by Bryson Honjo (@untiedhawaii)

What Is Live Selling?

Live selling platforms are essentially online auction houses.

You get in front of a camera, set a base bid, and run your auction.

Theres an emotional aspect thats not there with ecommerce, said Honjo.

Youre not just engaging with a username.

This is a live person who is showing you on camera what the shoe looks like from every angle.

You cant come in with zero knowledge of the industry.

But today, selling new, hype sneakers is not a profitable endeavor.

Worn sneakers are better for building inventory in 2023.

Honjo notes that availability is going to vary a lot depending on where you live.

If youre inMississippi, its highly unlikely a convention is going to roll through town.

But if you live somewhere like LA, you could find several every month.

You dont necessarily want to stock a bunch of super hype, super expensive sneakers that wont move quickly.

Thats not where youll find the highest profit margin.

Instead, you want to stock a bunch of shoes that are reliably in demand.

Shoes to Buy: Best and Worst Returns

What are the best shoes to stock?

If youre going for volume, Honjo recommends Nike Dunk Lows and Jordan 1 Highs.

By and large, youll want to stay away from flipping Yeezys.

In 2023, that reliability is gone.

It might end up still being the case, said Honjo, but its just so unpredictable.

If he continues to implode his own reputation, the demand might not be there in a year.

Calculate Your Overhead Costs

Remember to calculate overhead costs into your profit margins.

Youll need to account for:

Now, the end consumer usually ends up paying for shipping.

On live selling apps, you might be better able to charge real shipping costs without impeding sales.

Another huge expense you better account for is taxes.

When youstart a side hustle, youre technically self-employed and no ones withholding taxes from your earnings for you.

You do have to be honest with yourself, though.

Its just going to be harder to gain traction than live selling.

Is Becoming a Sneaker Reseller Right for Me?

Possibly even enough money to replace your 9-to-5 income if you hustle hard enough.

It can also be ideal for those who might already know they enjoy collectible industries.

Even if the product is different, the experience of the work is similar.

She is a regular contributor to The Penny Hoarder.