Sneaker Resellers: Why You Need a Resale Certificate (and How to Get One)

The U.S. sneaker resale market has exploded past $6 billion in annual volume. Platforms like StockX, GOAT, and eBay have turned what used to be a parking lot hustle into a legitimate industry. Thousands of resellers are buying limited releases, outlet finds, and wholesale lots, then flipping them for profit.

But here is the thing most sneaker resellers miss: if you are buying sneakers to resell, you are running a retail business. And retail businesses can purchase inventory without paying sales tax upfront. The tool that makes this possible is called a resale certificate.

How the Sneaker Resale Business Actually Works

The business model is straightforward. You buy sneakers at one price and sell them at a higher price. The spread between your cost and sale price, minus fees and shipping, is your profit.

Sources vary. Some resellers camp out for Nike SNKRS drops. Others hit outlet malls, scooping up discounted pairs that still carry resale value. Some buy wholesale lots from liquidation auctions. And a growing number source from other resellers on platforms like StockX and GOAT, flipping pairs across marketplaces.

No matter how you source, every dollar you spend on sales tax during the buying phase eats directly into your margin. On a $200 pair of sneakers in a state with 8% sales tax, that is $16 gone before you even list the shoes. Multiply that across dozens or hundreds of pairs per month, and you start to see why the resale certificate matters.

What a Resale Certificate Does for Sneaker Resellers

A resale certificate is a state-issued document that tells a seller: "I am buying this item for resale, not personal use. Do not charge me sales tax."

When you present this certificate to a retailer, wholesaler, or supplier, they are legally allowed (and required) to sell you the item tax-free. You then collect sales tax from the end buyer when you sell the sneakers, or the marketplace platform handles that for you.

This is not a tax dodge. It prevents double taxation. Without a resale certificate, you would pay sales tax when buying the sneakers AND your customer would pay sales tax when buying from you. The certificate ensures sales tax is collected only once, at the final point of sale.

The Real Math on Tax Savings

Here is what the numbers look like for a moderately active sneaker reseller:

Even at just 10 pairs per month, you are saving nearly $2,000 per year. At 50 pairs per month, which is common for full-time resellers, the savings climb to $8,640 annually. That is money that goes straight to your bottom line.

Where You Can Use Your Resale Certificate

Nike Factory Stores and Outlets

Nike Factory Stores accept resale certificates. You will need to set up a tax-exempt account at the store. Bring a printed copy of your certificate and your state sales tax ID number. Some locations handle this at the register; others route you through a manager. Plan for an extra 10 to 15 minutes on your first visit.

Once your account is on file, future purchases at that location should process tax-free automatically. If you source from multiple Nike outlets, you may need to register at each one.

Adidas, New Balance, and Other Brand Outlets

Most major brand outlet stores accept resale certificates. The process is similar to Nike: present your certificate, ask for a manager if the cashier is unfamiliar with the process, and get your account set up. Adidas outlet stores, New Balance factory stores, and ASICS outlets all have procedures for tax-exempt purchases.

Big-Box Retailers

If you source sneakers from stores like Nordstrom Rack, Marshalls, TJ Maxx, or Ross, you can present your resale certificate at checkout. Each retailer has its own process. Some require you to register online first; others handle it at the customer service desk. See our retail arbitrage guide for store-by-store details.

Wholesale and Liquidation Suppliers

Buying sneaker lots from wholesalers, liquidation companies, or pallet sellers? Your resale certificate is essential here. Most wholesale distributors require one before they will even open an account for you. Liquidation platforms like B-Stock and BULQ typically collect your certificate during registration.

Buying from Other Resellers

This gets more nuanced. If you buy sneakers from another reseller (say, a local sneaker shop or consignment store), you can present your resale certificate to avoid paying sales tax. The seller should accept it as long as it is properly filled out and valid.

Buying from individuals at sneaker conventions or through private sales? Those transactions typically do not involve sales tax collection, so the certificate is not relevant in that context.

StockX, GOAT, and Marketplace Facilitator Laws

This is where modern sneaker reselling gets interesting from a tax perspective.

StockX, GOAT, and eBay are classified as marketplace facilitators in all 50 states that collect sales tax. This means the platform, not you, is responsible for collecting and remitting sales tax from the buyer. When someone buys your sneakers on StockX, StockX adds sales tax to the buyer's total and sends that money to the appropriate state.

What This Means for You as a Seller

You generally do not need to separately collect sales tax on sales made through these platforms. The marketplace handles it. However, you still need a sales tax registration (and by extension, a resale certificate) because:

1. You need it to buy inventory tax-free. This is the primary reason.
2. You may sell through non-facilitator channels. Facebook groups, local meetups, your own website. For those sales, you are responsible for collecting and remitting sales tax.
3. Your state may require registration regardless. Many states require any business making sales to register for a sales tax permit.

Consignment Shops and Local Sneaker Stores

If you consign sneakers at a local shop, the shop collects sales tax from the buyer. You receive your payout based on the pre-tax sale price (minus the shop's commission). Your resale certificate comes into play when you are buying sneakers from a consignment shop for resale, not when you are consigning your own pairs.

The Hobby vs. Business Line

The IRS and state tax agencies draw a line between hobbies and businesses. If you are casually selling a pair of sneakers you wore and decided you did not like, that is a personal sale. No resale certificate needed, and in most cases no sales tax owed (though the platform still collects it on your behalf).

But if you are regularly buying sneakers with the intent to resell them for profit, you are running a business. The IRS looks at factors like:

• Regularity: Are you buying and selling consistently?
• Profit motive: Are you trying to make money, not just break even?
• Business-like conduct: Do you keep records, track inventory, maintain separate accounts?
• Volume: Selling 5 pairs is different from selling 50 pairs per month.

There is no magic number that separates hobby from business. But if you are reading this article, you are probably running a business. Get registered.

How to Get Your Resale Certificate

The process varies slightly by state, but the general steps are:

1. Register for a sales tax permit with your state's Department of Revenue (or equivalent agency). This is free in most states.
2. Receive your resale certificate. In some states, the certificate is a separate document. In others, your sales tax permit number is what you put on a resale certificate form.
3. Fill out the certificate form that your supplier or retailer provides. You will enter your business name, address, tax ID number, and a description of what you are purchasing ("athletic footwear for resale").
4. Present it to sellers when making inventory purchases.

The entire registration can often be completed online in 15 to 30 minutes. Processing times range from same-day to a few weeks, depending on the state.

We handle the full registration process for you if you prefer not to navigate your state's system.

Get Your Resale Certificate -->

Presenting Your Certificate at Retail Stores

Walking into a Nike outlet and asking for a tax exemption can feel awkward the first time. Here are some practical tips:

Bring a printed copy. While some stores accept digital versions, a physical copy avoids confusion. Print several and keep them in your car.

Ask for the manager or supervisor. Frontline cashiers often have not processed a resale certificate before. A manager will know the procedure or can call their corporate support line.

Be specific about what you are buying. "I am purchasing athletic footwear for resale through my business" is clear and professional. Do not try to buy personal items and resale inventory in the same transaction.

Keep the transaction separate. If you are also buying something for yourself, run two transactions. Using a resale certificate for personal purchases is fraud.

Get a receipt showing $0 tax. Before you leave, verify the receipt shows no sales tax charged. Fixing this after the fact is a headache.

Record Keeping for Sneaker Resellers

Good records protect you in an audit and help you understand your actual profitability.

For every purchase, track:

• Date and location
• What you bought (style, colorway, size)
• Cost per pair
• Tax charged (should be $0 with certificate)
• Receipt or invoice

For every sale, track:

• Platform (StockX, GOAT, eBay, local)
• Sale price
• Fees charged by the platform
• Shipping costs
• Net proceeds

A simple spreadsheet works for small operations. As you scale past 50 to 100 pairs per month, consider inventory management software or a dedicated bookkeeping system.

Common Mistakes to Avoid

Using your certificate for personal kicks. If you buy a pair to wear, pay the tax. State auditors do cross-reference purchase volumes against reported sales. If you bought 200 pairs and only sold 150, they will ask about the other 50.

Not registering in states where you have nexus. If you attend sneaker conventions in other states and buy inventory there, you may need a resale certificate in that state too. Review our guide on multi-state resale certificates for details.

Ignoring sales tax filing requirements. Having a resale certificate means you are registered to collect sales tax. That comes with filing obligations, usually monthly or quarterly returns. Even if you owe $0 (because marketplace facilitators collected everything), you may still need to file.

Not keeping receipts. A shoebox full of crumpled receipts is not a record-keeping system. Photograph or scan every receipt. Store them digitally, organized by month.

Scaling Your Sneaker Resale Business

Once you have your resale certificate and your sourcing routine dialed in, the natural next step is scaling. Consider:

Diversify your sourcing. Do not rely on one method. Combine retail sourcing, wholesale lots, online drops, and consignment buys.

Build supplier relationships. Some outlet managers will call you when they receive new markdowns. Building that relationship takes time but pays off.

Expand to multiple platforms. Listing on StockX, GOAT, and eBay simultaneously gives your pairs maximum exposure.

Track your data. Know which brands, models, and sizes generate the best margins. Let the numbers guide your buying decisions, not hype.

Get Started

A resale certificate is one of the first things any serious sneaker reseller should obtain. The savings are real, the process is straightforward, and it marks the transition from casual flipper to legitimate business.

Apply for Your Resale Certificate -->

Questions about sneaker resale and sales tax? Contact us for guidance.

Related Articles

• Retail Arbitrage: How to Use Your Resale Certificate at Major Stores - Store-by-store guide for using your certificate at Target, Walmart, Costco, and more.
• What Can You Buy Tax-Free with a Resale Certificate? - Understand exactly which purchases qualify for the resale exemption.
• Resale Certificate for eBay Sellers - Specific guidance for resellers who sell on eBay.