Risks of reselling trainers : fraud and losses

The risks of fraud in the resale of trainers a highly exposed market

The sector of trainers remains the e-commerce segment most vulnerable to fraud, according to Riskified's analysis. This exposure is explained by a combination of lucrative secondary market, strong demand for limited editions, and resale prices often double or triple. The data reveals an increase in +94% increase in sales volume during the NBA All-Star weekend in February, accompanied by +41% increase in attempted fraudduring this same period. The first three months following a limited release see the risks double, a period during which fraudsters concentrate their attacks. Even more revealing: 70% of orders from a major brand generate 75% of fraudulent activity., illustrating the concentration of attacks on high value-added models.

Shopping bots and Account Takeover

The fraudsters deploy sophisticated automated programs (SNKRS bots, specialized bots) capable of buying up limited editions en masse in seconds, before legitimate buyers even have time to complete their purchase. These tools bypass brand website security systems and snap up all available stock. Account Takeover (ATO) represents a complementary threat: hackers seize control of accounts legitimate customers To circumvent the per-person purchase limits imposed by brands, this technique allows them to place multiple orders without triggering security alerts. The consequences are immediate: exclusion of genuine customers, artificial stock shortages, and resale at exorbitant prices on the secondary market. Raffle and lottery systems intended to democratize access are also targeted, with fraudsters creating hundreds of fake accounts to maximize their chances. Access to physical stores thus becomes the last resort for honest shoppers in the face of this unbalanced technological race.

Counterfeits and fraudulent returns

The phenomenon of returns of counterfeit goods This constitutes a growing threat: a buyer orders an authentic pair of shoes from a platform, receives the product, then sends back a fake pair instead, getting their money back while keeping the original. Platforms must then implement... laborious and costly checks for each return, without any absolute guarantee of detection. The dark web facilitates this fraud by offering detailed guides and contacts for obtaining high-quality counterfeits, difficult to distinguish from the originals without in-depth expertise. Legitimate resellers suffer a double impact: direct financial loss when they unintentionally purchase fake pairs on the secondary market, and legal responsibility if they resell them in turn. Automated authentication systems are showing their limitations when faced with high-end counterfeits, forcing the use of time-consuming manual expertise. This fraud erodes market confidence and forces all stakeholders to increase their verification costs.

Address concealment and stolen pairs

The techniques of address concealment allow fraudsters to bypass anti-fraud controls based on geolocation or purchase history. They use temporary addresses, P.O. boxes, or forwarding services to mask their real identity and place multiple orders. The problem of pairs stolen from the supply chain This adds another layer of complexity: warehouse workers, carriers, or intermediaries steal stock that then ends up on the secondary market at bargain prices. Resellers who unwittingly purchase these products incur legal liability, even without knowing their illicit origin. The flawed authentication system doesn't always detect stolen pairs because they are technically authentic. Platforms struggle to trace the origin of products once they circulate on the secondary market, creating a blind spot exploited by organized networks.

Lost pairs and operational risks: the hidden costs of reselling

New resellers systematically underestimate the operational risks which erode profitability far beyond theoretical calculations. Poor inventory management, losses during shipping, customer returns, and cancellations constitute an “invisible tax” that drastically reduces actual margins. A return rate of 1 to 2% It may seem negligible on paper, but each canceled transaction completely wipes out the profit from a sale. The platforms impose penalties for cancellations or delivery delays, degrading the seller's status and increasing commission fees. The cost of secure shipping ranges between 10 and 14€ Depending on the location, this amount significantly erodes margins on low-value pairs. These accumulated micro-losses transform a seemingly lucrative activity into a fragile business model for those who neglect operational rigor.

Logistics losses: shipping, storage and insurance

The risks of loss during shipping remain underestimated: packages stolen from the doorstep, damaged during transport, or lost by the postal service. Without signature confirmation With enhanced tracking, the seller assumes sole financial responsibility in case of a dispute. Secure shipping with insurance becomes essential for high-value pairs, but mechanically increases unit costs. Resellers practicing long-term holding must also integrate the storage costs Space rental, maintaining the boxes in perfect condition, protection against humidity and dust. Even minor damage to the box can significantly reduce its resale value. 10 to 20% For certain models prized by collectors, insurance becomes a necessity to preserve the value of the stock. Insurance for pairs exceeding several hundred euros represents an additional cost that initial calculations frequently omit.

Returns and cancellation management

The impact of customer returns on profitability goes far beyond simple refunds: a seemingly profitable transaction can disappear entirely, leaving the seller with a worn or damaged pair of items, unsellable at the original price. Platforms severely penalize sellers who display a high cancellation rate, This can lead to account downgrades, increased commission fees, or even temporary bans. Seller metrics (satisfaction rate, shipping time, dispute rate) directly impact listing visibility and buyer confidence. Responsive customer support and a product verification Meticulous pre-shipment checks limit these risks, but require time and organization. Resellers handling dozens of transactions monthly see these minor incidents accumulate, transforming theoretical profitability into a disappointing net result.

Failed authentication and reseller liability

Buying counterfeit pairs on the secondary market poses a constant risk, even for experienced dealers. High-quality fakes regularly fool detection systems.automated authentication, requiring the use of specialized third-party services like StockX or GOAT. These platforms offer manual authentication by experts, but charge for this service. 5 and 15% of the selling price. Legal liability in the event of reselling counterfeit goods, even unintentionally, exposes the seller to prosecution for violation of the intellectual property of trademarks. The consequences range from permanent banning from platforms to fines and legal action. However, simply authenticating each pair before resale is not enough: it is a non-negotiable obligation to protect one's business.

Price volatility: understanding unpredictable market cycles

There price volatility trainers transforms reselling into a high-risk psychological activity: prices fluctuate dramatically according to hype cycles, celebrity influence, seasonality, and supply saturation. Riskified's analyses reveal that risk levels have decreased by 10% between September 2023 and August 2024, But this overall trend masks significant monthly fluctuations that trap uninformed dealers. Pairs generally experience a price appreciation in the first three months post-release, This is the period during which demand exceeds available supply. After this period, depreciation becomes possible, even drastic, when enthusiasm wanes or new releases cannibalize attention. Understanding these cycles allows you to choose between a quick flip strategy (immediate resale) and a long-term holding strategy (betting on future appreciation), each carrying its own risks.

Hype cycles and brand fatigue

The craze for a pair follows a predictable trajectory: strong initial demand Fueled by artificial scarcity and marketing, the market peaks in the first three months, then gradually corrects as attention shifts to new releases. Some collaborations maintain their value over the long term, becoming sought-after classics for collectors. Others suffer rapid “brand fatigue”: the example of… Yeezy Adidas The Kanye West scandal in 2022 illustrates how a controversy can cause the value of an entire line to collapse overnight. Models trading at 300-400€ They fell below retail prices within weeks, leaving retailers with unsellable stock. The influence of celebrities on prices remains unpredictable: an Instagram post can increase demand tenfold, while a controversial statement can kill a collaboration. Timing thus becomes the key trade-off: a quick flip to secure a modest margin, or a long-term holding strategy betting on increasing scarcity, with the risk of seeing the value collapse in the meantime.

Seasonality and key events

Seasonal peaks structure the resale market: the NBA All-Star weekend in February generates an increase in +94% increase in sales volume and +41% increase in fraud, This is the period during which limited-edition basketball shoes reach their peak value. Special collaboration releases (Fashion Week, anniversaries of iconic models) create predictable windows of opportunity. Sales and promotional periods from brands cannibalize secondary market demand, temporarily driving prices down. Savvy resellers anticipate these trends. seasonal cycles To maximize their profits: sell summer models in April-May before demand drops, and stockpile winter editions to sell in the fall. Supply dynamics also vary depending on events: some brands saturate the market with unexpected restocks, destroying the artificial scarcity that supported high prices.

Artificial scarcity and supply saturation

Brands deliberately create the artificial rarity through raffles, lotteries, and announced limited quantities, demand is stimulated by the fear of missing out (FOMO). This strategy keeps prices high on the secondary market but carries a risk of saturation when too many resellers enter the market simultaneously. Some initially limited-edition models see their value plummet after a surprise restock or unannounced overproduction. Supply saturation quickly transforms a rare economic good into a commonplace product: the Jordan 1 Mid, Items once sought after are now permanently available, eliminating their rarity premium. Resellers must therefore assess the conspicuous consumption real behind each model: some pairs are bought to be worn and displayed socially, maintaining a sustained demand; others generate only temporary speculative interest that evaporates as soon as collective attention shifts.

The revent of trainers It remains profitable for disciplined resellers who understand the actual calculations, methodically manage operational risks, and adapt to the inherent volatility of the market. The illusion of easy profits vanishes in the face of the reality of cumulative costs, logistical losses, and increased competition. A professional approach is based on precise pre-purchase calculations incorporating all hidden costs, rigorous operational management limiting returns and cancellations, and legal compliance protecting the business in the long term. Discover our guides to professionalize your business And access the resources that secure your journey in reselling. The market continues to offer tangible opportunities, but only for those who treat this activity as a true business requiring continuous training, strategic monitoring, and rigorous accounting practices. Explore our solutions for demanding resellers ➡️