Side Hustle: The Flip Side of Things

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The resale economy has ample opportunity. Ultra rare sneakers tend to resell for almost double the price.

By Dan Gonzales                                                                                                        January 30, 2019

The resale economy has ample opportunity. Ultra rare sneakers tend to resell for almost double the price.

By Dan Gonzales                January 31, 2019

Almost everyone nowadays knows someone who tries to turn a profit online. Maybe you've tried too?

Chances are you've thought about it; how can I make money online doing something that takes very little work that generates cash flow? We could all use a little extra cash in our pockets with costs of living rising and the myriad of complexities that life throws at us. So what are some options for selling online? Over the past two months, I have realized through reading Crushing It! by Gary Vaynerchuk and watching his videos that a reasonable side hustle we can all participate in is the art of flipping things. Whether that means selling unused clothes or unused kitchen items one man's trash can certainly be another man's treasure. Here is a video for more context on flipping items online: Trash Talk by Gary Vee.

I wanted to give selling sneakers on Goat, a popular online marketplace for resale sneakers, a try. I have been browsing the app for months since I love sneakers, Jordans, in particular, noticing that most shoes were above their resale value; I wondered if the sellers, individuals that listed their shoes on the exchange, were selling because they didn't want the shoe or they wanted to jump in a profit. In addition, the shoe prices for popular shoes were way higher than the shoe prices when the originally come out due to scarcity and selling out when the shoes initially get released. However, there is a plethora of fancy footwear that is reasonably priced. With the resale sneaker market eclipsing one billion dollars, there can be good money made through Goat or Stock X for that matter if one can get enough shoes out and make enough on margin. I personally would not flip shoes on this platform unless they were going for at one hundred dollars more than the price you bought them for or you just simply need extra cash.

While selling a shoe for $50 over the price purchased can seem like a lucrative proposition, Goat needs to make money too. The company has a 9.5% fee they charge for each sale. For instance, let's take the recently released Jordan 11 "Concords" a pair in size 9 was selling at $295. Goat would take 9.5% of $290 which is about $28 give or take leaving the seller with about $261. The Jordan 11s had originally retailed for $240 after tax and shipping leaving a profit of $21. But here's where hidden fees can sneak up. When I went to the UPS store to ship off the shoes, I needed to purchase a box big enough for them to fit. That cost me $5... Moreover, there is a 2.9% fee to transfer your funds from the app into Paypal or your bank account. Subtracting the cost of goods sold, I ended up with $249 credited to my Paypal and a true profit of nine dollars. All in all, this experiment served as a learning experience and taught me that the online resale market through Goat and Stock X was not as lucrative as I anticipated.

I think it can be worthwhile and profit-friendly if one were to sell multiple sizes of the same shoe along with multiple shoes. The difficult part is getting the shoes for their original retail price. That may mean standing in the cold outside, trying to win raffles, or waking up early to make a purchase through the Nike SNKRS app. For instance, someone can list five shoes with the average profit being $30 and that person made $150 not subtracting supplies and transfer fees which would likely drop the profit to $130. Moreover, I know someone who flips Supreme products, the most popular brand among youth that is popular simply because of their brand name. The resale economy for Supreme can be seen here on Stock X, there is easily a plethora of items going well over one thousand dollars that were not worth that much compared to the original drop. Selling these products requires buying products as soon as they are released online and people have even turned to bots to guarantee purchases.

I've given reselling clothes on Ebay a try and have had success generating over $100 in sales off of 2 items. I remember when I first listed a rare Golden State Warriors jacket from their first recent championship on Ebay not thinking that it would get any attention on Ebay. However, I was lucky as a sale happened within the first week. Ebay has a cost of sale as well. For my sale, I was charged an invoice of $18.22 bringing down my total profit to about $85. In this case, it was worth it. I spent about an hour of my time packaging the box and going to the post office which is right down the street. After I shipped the item, I raked in cold hard cash in my Paypal account. Another effective strategy is to start a bidding process that would have buyers set the buying price if you don't know how to properly price an item.

Chances are you've thought about it; how can I make money online doing something that takes very little work that generates cash flow? We could all use a little extra cash in our pockets with costs of living rising and the myriad of complexities that life throws at us. So what are some options for selling online? Over the past two months, I have realized through reading Crushing It! by Gary Vaynerchuk and watching his videos that a reasonable side hustle we can all participate in is the art of flipping things. Whether that means selling unused clothes or unused kitchen items one man's trash can certainly be another man's treasure. Here is a video for more context on flipping items online: Trash Talk by Gary Vee.

I wanted to give selling sneakers on Goat, a popular online marketplace for resale sneakers, a try. I have been browsing the app for months since I love sneakers, Jordans, in particular, noticing that most shoes were above their resale value; I wondered if the sellers, individuals that listed their shoes on the exchange, were selling because they didn't want the shoe or they wanted to jump in a profit. In addition, the shoe prices for popular shoes were way higher than the shoe prices when the originally come out due to scarcity and selling out when the shoes initially get released. However, there is a plethora of fancy footwear that is reasonably priced. With the resale sneaker market eclipsing one billion dollars, there can be good money made through Goat or Stock X for that matter, if one can get enough shoes out and make enough on margin. I personally would not flip shoes on this platform unless they were going for at one hundred dollars more than the price you bought them for or you just simply need extra cash.

While selling a shoe for $50 over the price purchased can seem like a lucrative proposition, Goat needs to make money too. The company has a 9.5% fee they charge for each sale. For instance, let's take the recently released Jordan 11 "Concords" a pair in size 9 was selling at $295. Goat would take 9.5% of $290 which is about $28 give or take leaving the seller with about $261. The Jordan 11s had originally retailed for $240 after tax and shipping leaving a profit of $21. But here's where hidden fees can sneak up. When I went to the UPS store to ship off the shoes, I needed to purchase a box big enough for them to fit. That cost me $5... Moreover, there is a 2.9% fee to transfer your funds from the app into Paypal or your bank account. Subtracting the cost of goods sold, I ended up with $249 credited to my Paypal and a true profit of nine dollars. All in all, this experiment served as a learning experience and taught me that the online resale market through Goat and Stock X was not as lucrative as I anticipated.

I think it can be worthwhile and profit-friendly if one were to sell multiple sizes of the same shoe along with multiple shoes. The difficult part is getting the shoes for their original retail price. That may mean standing in the cold outside, trying to win raffles, or waking up early to make a purchase through the Nike SNKRS app. For instance, someone can list five shoes with the average profit being $30 and that person made $150 not subtracting supplies and transfer fees which would likely drop the profit to $130. Moreover, I know someone who flips Supreme products, the most popular brand among youth that is popular simply because of their brand name. The resale economy for Supreme can be seen here on Stock X, there is easily a plethora of items going well over one thousand dollars that were not worth that much compared to the original drop. Selling these products requires buying products as soon as they are released online and people have even turned to bots to guarantee purchases.

I've given reselling clothes on Ebay a try and have had success generating over $100 in sales off of 2 items. I remember when I first listed a rare Golden State Warriors jacket from their first recent championship on Ebay not thinking that it would get any attention on Ebay. However, I was lucky as a sale happened within the first week. Ebay has a cost of sale as well. For my sale, I was charged an invoice of $18.22 bringing down my total profit to about $85. In this case, it was worth it. I spent about an hour of my time packaging the box and going to the post office which is right down the street. After I shipped the item, I raked in cold hard cash in my Paypal account. Another effective strategy is to start a bidding process that would have buyers set the buying price if you don't know how to properly price an item.


A 5 billion dollar market as told via The Wall Street Journal

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It was worth the effort! For a link to my Ebay click on the link at the bottom of the page.

The flip game takes patience, DEDICATION, and discipline. Not everyone succeeds because they get lazy or give up easily. "If I have learned a thing or two from this, it's that trying new ways to create an income stream pays off. It is more practical than one thinks to flip everyday items people don't use any more than doing working for someone else. It teaches that with a little bit of hustle and creative copywriting that one can create supplemental income online. If I were to flip an item like this every month for the year I would make almost an extra $1,000. 

So what can you flip?

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