Key Concepts
Key Terms Every Sneaker Reseller Should Know
Whether you’re just starting out or trying to take your reselling game to the next level, understanding the terms below will help you avoid costly mistakes, make smarter decisions, and build long-term profit. These aren’t just buzzwords — they’re the language of successful resellers.
Brick
A “brick” is a sneaker that doesn’t sell out quickly or loses hype fast after release. While most resellers avoid bricks, brick flipping is a legit strategy. These pairs can often be scooped up under retail and sold locally or in bulk with low risk and steady, smaller margins.
COGS (Cost of Goods Sold)
This is your true cost per pair — not just the retail price. It includes:
Retail price
Sales tax
Shipping costs
Platform or processing fees Understanding your COGS is key to calculating real profit and deciding whether a flip is worth it.
Payout
Your payout is the net amount you receive after selling fees are deducted on platforms like StockX, GOAT, or eBay. Example: If a pair sells for $250 on StockX and the platform takes 12%, your payout might be around $220. Always calculate payout before listing or buying to understand your margins.
SKU (Stock Keeping Unit)
Every sneaker has a unique SKU, usually a 9-digit alphanumeric code. It helps you:
Search for accurate market pricing across platforms
Track restocks and monitor inventory
Avoid confusion between similar models or colorways
Learning to search and track SKUs is a basic but powerful skill for any reseller.
Undercutters
Undercutters are sellers who consistently lower their prices below the market to move inventory quickly. While frustrating, especially in tight markets, undercutters can also:
Create buying opportunities when prices dip too low
Signal when to avoid listings or switch platforms
Help you find undervalued inventory for local or bundle flips
Smart resellers learn to work around or even profit from undercutters rather than panic when they show up.
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