OS Group Rises to $50 Million by Transforming Sneaker Resale Market

Founded in 2020 by Oscar Rachmansky, OS Group has rapidly evolved into a powerhouse in the sneaker resale industry, projecting revenues of $50 million by the end of 2025. Unlike many in the sector facing struggles, Rachmansky’s approach emphasizes bulk sales to independent retailers across the United States, positioning the company as a significant player in a shifting market.

Rachmansky, who started his journey as a sneaker reseller with just $1,000 from birthday money, has transformed OS Group from a small operation into a robust business-to-business (B2B) model. The company grew from $1 million in revenue in 2020 to its anticipated milestone by leveraging a network of over 800 sellers from around 30 to 40 countries. This strategy allows OS Group to fill a critical gap in the market by sourcing high-demand products for smaller retailers.

Adapting to Market Changes

As the sneaker resale market faces challenges, including a surplus of inventory and changing consumer preferences, Rachmansky remains optimistic. He notes that while traditional resale profits have declined, OS Group has thrived by catering to the needs of independent retailers. “We provide a one-stop shop for business owners,” Rachmansky explains, “allowing them to focus on growth while we handle sourcing.”

The pandemic played a pivotal role in OS Group’s development. After returning home during lockdowns, Rachmansky identified a growing demand from independent stores for reliable product sources. By offering wholesale buyouts, OS Group was able to acquire excess stock from retailers and boutiques, further establishing its position in the market.

One of the beneficiaries of OS Group’s innovative model is A Sneaker City, a multi-location resale chain. Founder Brandon Gutierrez attributes his rapid expansion to the support from OS Group, stating, “I’ve expanded to 12 locations nationwide and invested millions with them. They’ve been my preferred vendor every step of the way.”

Navigating a Competitive Landscape

OS Group’s clientele comprises around 70 percent small independent shops, with the remaining 30 percent including larger partners like StockX, GOAT, and TikTok Shop. Despite the overall downturn in traditional sneaker resale, where fewer than half of sneaker releases now sell above retail price, OS Group has carved out a lucrative niche by focusing on B2B transactions.

Rachmansky acknowledges the challenges the industry faces, noting that prices for popular sneakers like Air Jordan 1s have decreased significantly, now ranging from $70 to $80. However, he also highlights rising demand for brands such as Asics and New Balance, indicating that while some segments may decline, opportunities persist.

By fostering relationships with both retailers and emerging streetwear brands, OS Group not only aids in distribution but also helps to elevate lesser-known labels. Austin Morris, owner of the streetwear brand Retrovert, praises OS Group for connecting his brand with retailers across the country, stating, “They care about protecting our brand and building lasting demand.”

As OS Group continues to grow, Rachmansky envisions expanding its model to create a tech-driven ecosystem that connects brands and resellers with retailers. “I want to build a B2B version of Farfetch,” he asserts, aiming to provide software services, financing, and logistics. This ambitious plan could redefine the sneaker resale landscape, building on the company’s impressive trajectory over the past five years.

In a market characterized by uncertainty, OS Group stands as a testament to adaptability and innovation, proving that with the right approach, businesses can thrive even amidst challenges.