How To Become A Sports Card Distributor

Editor

Updated on

May 9, 2023

In recent years, more and more people are becoming interested in sports cards as an alternative way of earning money.

The reason is that a sports card distributing business can be highly profitable when planned and managed properly. However, becoming a distributor is more difficult nowadays due to greater competition.

To be successful, you must be aware of the challenges in setting up such a business, the various strategies that can be utilized, and several other factors. This guide shares all this information in detail so you can easily get started in the sports card industry.

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Becoming A Sports Card Distributor

1. Planning The Business

Like any business, the first thing to do is have a proper plan regarding how to become a sports card distributor. Planning will help answer important questions regarding the trading card business, such as the costs involved, who is the target market, and how much inventory is required.

While becoming a sports card distributor is not as easy as it once was, planning can make things a bit simpler. Taking inventory is one of the most crucial aspects of the planning process. And it is vital to have at least $5,000 to $10,000 in your inventory right at the onset.

This is important as most manufacturers are unlikely to deal with a distributor who does not have a minimal amount of inventory. Additionally, trading card manufacturers will require you to purchase products worth at least $1,000 annually, and they can cancel the contract if such conditions are not met.

2. Deciding How To Sell

You can start your sports card distributing business in various ways, such as through a brick-and-mortar store, online distribution, or a combination of the two. Deciding which distribution mode to opt for will play a major role in determining factors like how to handle orders and expand the business.

Fortunately, a special license is not required to set up a business that deals in the distribution of sports trading cards. But the standard licenses needed by a business to start work will be required.

3. Meeting The Qualifying Requirements

Sports card companies need to be convinced that you can handle the distribution business. To do that, you need to complete the application process and meet the prescribed requirements. The first step of meeting these requirements involves providing the manufacturer with evidence of the business and inventory.

For offline physical stores, take photographs of the store and its inventory and share them with the card manufacturers. Try to display as much inventory as possible for the best results. On the other hand, if you intend to start an online trading card distribution business, share a screenshot of the homepage of your website with the card companies.

Additionally, share a screenshot of the inventory on the site and details regarding the website host. Once this is done, it is time to scan and share various documents, including a resale permit or tax identification which has details regarding the store name or location. Other documents required include a business account check and your business license.

Similar details will need to be shared in the case of an online trading card distribution business. In this case, you will require details of the hosting account, including information about the owner, evidence of the site being hosted through that account, and your IP address.

After completing this process, you must fill out a wholesale distributor application provided by the trading card company before submitting it with the scanned documents. While filling out the application, pay attention to the tax resale part. It means that the distributor is eligible for a sales tax and serves as evidence to the state government regarding the existence of the business.

4. Getting An Edge Over The Competition

The sports card distribution business is extremely competitive, with many distributors constantly entering the market. To beat this competition, you will require strategies to help you get an edge. One way to do this is to buy out the business of an established sports trading card distributor.

Alternatively, you could target customers in an area where such a distributor is missing. In the former case, finding a distributor with numerous business contacts who is planning to retire or someone whose business is about to collapse may be advantageous. Purchasing such sports cards businesses and taking over is an easy way to get started.

If you’re looking to set up a sports trading card business in an area that does not have an established distributor, in-depth research will be required. It will help identify areas where setting up such a business will be profitable, and you can then pitch this idea to the trading card manufacturer.

5. Ensuring Proper Storage Space

Supply is an essential aspect of any business in the distribution industry that should never be overlooked. Proper storage space is required to hold inventory as you cannot store the sports cards at home or anywhere they can easily get misplaced.

Offline stores generally have a storage room or backroom to store inventory and hold shipments. If your store does not have that, investing in a storage container is advisable. This is also the best solution for businesses that deal in sports card distribution exclusively online.

6. Deciding On A Shipping System

The efficiency of your shipping system will be a significant factor in determining how successful your sports card distribution business is. For businesses that sell baseball cards online, fast shipping is necessary to provide customers with a good experience.

You will also need to set up notifications for orders and deliveries and may require assistance sorting through the shipments, picking them up, and dropping them off. It is important to understand that customer satisfaction will depend largely on whether the orders are delivered on time.

7. Growing The Business

With the internet, creating business contacts in the card industry and expanding your business circle has become slightly easier, but it still requires considerable effort and time. One of the best ways of promoting your business is through advertisements.

Advertisements can be very affordable or extremely costly, depending on the advertising business and the period for which the ad runs. There are several options to choose from, including business cards, local TV stations, billboards, social media platforms, newspapers, etc.

Even after customers are drawn in after seeing the advertisements, a lot of skill is required to complete a sale. You will need to maintain a high level of engagement with them to get them to purchase and turn them into repeat customers.

For businesses selling sports trading cards and memorabilia online, sports cards forums and blogs can be used for promotions. Streaming platforms have also become extremely popular, where distributors unbox new card shipments live.

This is an effective way of engaging both new and existing customers. Remember that retaining more customers is always beneficial and will prevent your inventory from stagnating.

Things To Keep In Mind

There are certain things to keep in mind for an online or offline dealer of sports cards and other collectibles.

1. Grading Systems

Sports cards have a grading system that can help you know about the value of a card. A higher-grade trading card will be more valuable and will cost more.

2. High-Demand Cards

Depending on the player depicted on the sports card, some cards offer more value than others. For instance, a card depicting a rookie player will be more sought after, as will sports cards for home-run hitters and strikeout pitchers. So, having these in stock can make a business profitable.

3. Card Value

Make sure to do proper research and determine the correct value of the sports cards in your inventory before making offers. You can take a card appraiser’s help for this purpose, which can help prevent spending on cards that won’t deliver a high profit.

Major Sports And Trading Cards Manufacturers And Distributors

The two main sports card manufacturers are Panini America and Topps. However, Topps has a monopoly deal with Major League Baseball that lasts till 2025, so dealing in its cards is a good idea. Some well-known distributors of trading cards include GTS Distribution, Mad Al Distribution, and Magazine Exchange.

Magazine Exchange is an Authorized Hobby Distributor for Upper Deck that manufactures both Topps and Panini trading cards. You can try contacting these distributors or researching how they run their businesses to better understand how to get started.

Final Thoughts

Starting a sports card distribution business requires considerable time, resources, and effort. You need to have a proper plan that considers all aspects of the business and helps it stand out from the competition.

In addition, learning from established businesses in the industry can be very helpful and can help you create useful contacts. Proper research is equally important, and you should strive to know about the different card grades, their value, and how much they sell for.

Once you have this information and an appropriate plan in place, you can get started in the trading card industry.

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