The profit margin on sneakers is typically about 15-20%. The industry average for retailer margins is approximately 50%, which means a brand like adidas or Nike sells a $100 shoe to their partners for $50.
Profit Margin Statistics
An average shoe store makes about $851,076 in sales, yielding a profit of about $127,363 for the owner. Shoe stores offer a big return on investment, sitting at about 46.1 percent. The biggest expense you’ll face when opening a sneaker store is the cost of inventory.
Popular sneaker brands usually have high-profit margins when compared to not-too-popular sneaker brands. Typical sneakers or sports shoes have a markup of 50 to 100 percent. The average shoe store’s profit margin is 8.3%.
Successful Selling Strategies
eBay is a good place to buy and sell sneakers. Setting fixed profit margins can help ensure a consistent level of profitability for the reseller. Generally speaking, sneaker reseller business makes a profit margin of around 50%. To maintain healthy profit margins, sneaker reseller business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers.
Sneaker Markup Insights
What is the average markup on sneakers? Sneaker companies spend $15 on overhead and $2 on taxes, netting a $4.50 profit on each pair sold to wholesalers for $50. Retailers then double prices to $100.
Popular sneakers see 100-500% markups.
Startup Costs
Startup costs for a shoe business range from $500-$5,000 for an online store. It’s over $100,000 for a physical retail store. Costs include website, marketing, inventory, shipping, and more.