‘They earn more than me’: Australia’s resale market garnering more success than suppliers

The predatory practice of scalping has hit sought-after fashion brands, with claims that resellers cashing in on diehard fans are making more than the original designers.

Alyssa Chau (l to r), Adiba Zama and Angie Natasha are fans of streetwear brand GeedUp. Picture: Supplied

Fans of sought-after streetwear brands are being forced to fork out more as Sydney scalpers snatch up racks of stock and onsell them for large mark-ups.

Clothing designers claim resellers are making more cash from their designs than they do, through “scalping”, where a buyer purchases a large number of items from a limited-release clothing collection the moment it is available, before reselling it elsewhere at a higher price.

While a few lucky fashion fans get their hands on what little stock remains, pieces from high-end streetwear labels including Geedup, Supreme, Palm Angels and Essentials have been spotted in boutiques across the Harbour City for well above the recommended retail price.

A Team Logo hoodie from Sydney label Geedup cost $220 when it was released, but the same jumper was for sale on The Good Kid for $400, and cost $495 on online marketplace Pushas.

A different Geedup hoodie originally sold for $189 but is available at retailer Secret Sneaker Store for $385.

Geedup development manager ‘TK’ with Geedup clothing founder Jake Paco at their Sydney warehouse. Picture: Richard Dobson

Geedup owner and founder Jake Paco claimed resellers “make more than me” by onselling his clothes at “perceived market value”, which can reach “anywhere between 400-600 dollars”.

But Mr Paco has no plans to mark up his prices even if he misses out on cash.

Justin Truong runs Pushas, Australia’s largest resale market. Source: Supplied

Streetwear enthusiast Adiba Zaman has bought from resellers. Picture: Supplied

“It’s painful that some of our diehards, sometimes, a lot of the time, miss out, just because people are so ready with software and bots these days to scalp,” Mr Paco said.

“You will never beat them, we have accepted that.”

Instead, he and now tries to negotiate with resellers he deems “good operators”.

“We go and check their stock and make sure it is being authenticated properly and they’re not selling fakes,” he said.

Other label jumpers are listed for up to $500 at the Secret Sneaker Store, while Good Kid stores across Sydney list them for between $350 and $400.

Online, the prices go even higher, with some stores selling jumpers for $600-$900.

Reselling or scalping is not against the law, and there’s no suggestion of any wrongdoing by the businesses named above.

Shopping and retail expert Gary Mortimer said despite customers being squeezed more, “if the consumer is willing to pay for it can be placed at a higher price”.

Pushas CEO and co-founder Justin Truong, whose marketplace has listed jumpers including from Geedup for up to $900, claimed pricing was based on “customer demand”.

“Our sellers will sell what the item is worth; with less on the market, they become harder to come across and that puts the price up,” Mr Truong said.

“What is our responsibility is to make sure people are getting authentic products. The price is something that isn’t decided by us.”

A pair of Geedup track pants originally retailed for $139.95, but were advertised on The Good Kid for $320.

The original price of this Geedup hoodie was $220, and Pushas has a price tag of $495 for the same item.

The Secret Sneaker Store told The Sunday Telegraph the pricing of clothing was driven by popularity, scarcity, and cultural relevance.

Geedup global general manager Trevene Patrick Keuneman said while high resale prices were a “massive compliment”, they tried to limit scalping where possible.

“There is a full ecosystem out there that relies on this as a business ... we don’t encourage (reselling), but we do understand that it has a place,” he said.

Streetwear enthusiast Adiba Zaman has experienced scalping firsthand, scooping up pieces through resellers when she has missed out during clothing drops.

“It’s almost always more expensive on resale. You really have to weigh how much you want something versus how much extra you’re willing to pay,” Ms Zaman said.

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Originally published as ‘They earn more than me’: Australia’s resale market garnering more success than suppliers