So You Want to Open a TCG Store? The Real Challenges Nobody Talks About

Gregory Thornberry
Nov 26, 2025
5 min read

The TCG hobby has exploded!

Pokémon, Magic: The Gathering, Yu-Gi-Oh!, Lorcana, One Piece, Dragon Ball Super; all of them are hotter than ever.

And with that growth comes a dream many collectors eventually have:

“I’d love to open a TCG store or start selling online.”

It feels natural. You love the hobby, you know the cards, and you want to be a part of the community in a meaningful (and hopefully profitable) way.

But the moment you go from collector → seller, you quickly learn the uncomfortable truth:

Becoming “direct” with publishers is extremely hard
Distributors don’t hand out accounts easily
Allocations are unpredictable
Margins are tight
Competition is fierce
And figuring out what to charge (retail vs. market price) becomes a moral and financial balancing act

So let’s walk through the real challenges, the pricing debate, the alternatives, and how to build a sustainable TCG business without becoming a scalper.

Becoming Direct With Companies: The Barrier Nobody Warns You About

Collectors often assume: “I’ll just apply to Pokémon or Wizards and buy product wholesale.”

But becoming direct is incredibly difficult.

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Direct accounts usually require:

A legitimate retail storefront
1–3 years of proven sales volume
A business plan
Consistent order history
Photos of your store
Community engagement
Sometimes references from distributors

Most new TCG sellers are rejected instantly, not because they’re doing anything wrong, but because publishers want established retail operations, not online-only sellers or hobbyists.

Wholesale Distributors Are the Next Step, but Not an Easy One

Most new stores turn to distributors like:

GTS
Southern Hobby
Alliance
PHD
Magazine Exchange
Hills
Peachstate
Golden

But even distributors often require:

A business license
A tax certificate
A physical retail space (often mandatory)
A minimum opening order
A review from a sales rep
Proof you’re not “buying to flip”

And when you are approved?

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You get tiny allocations at first.

2 booster boxes
A couple ETBs
Maybe a case if you’re lucky

Meanwhile, big stores get pallets.

This is where the pressure starts.

The Pricing Dilemma: Retail Price vs Market Price

Once you finally secure product — from a distributor, from direct, or from buying collections — you face a huge business question:

Do you sell at retail (MSRP)?

Do you sell at market value?

Both come with pros and cons.

Selling at Retail (MSRP)

Pros:

Builds trust
Builds a loyal community
Parents appreciate it
New collectors feel welcomed
Helps your long-term reputation
You become “the good guy” store

Cons:

You leave money on the table during hype drops
Your product sells out instantly
Resellers buy you out the moment you stock
You might actually lose money if distribution pricing is high

MSRP is noble, but it’s not always realistic for survival, especially for new stores with low allocations.

Selling at Market Price

Pros:

You stay competitive with online sellers
You make enough margin to actually stay in business
You protect your product from scalpers buying everything out
You can reinvest more into inventory

Cons:

Some customers might accuse you of “price gouging”
You can look like a scalper if you’re not careful
Parents and casual players may be priced out
You risk harming your brand image

Market pricing is not wrong — it’s simply supply and demand.But it must be done responsibly.

The Scalper Trap: How New Sellers Accidentally Cross the Line

Most people don’t start out trying to scalp.But it often happens slowly:

You can’t get allocations
Distributors won’t approve you
Retail shelves are empty
Your competitors are buying everything up
You need product to sell
You pay market price for a case
You list it slightly higher to make a small profit
Suddenly customers start calling you a “scalper”

The trap isn’t intentional — it’s structural.

The system pushes new sellers toward the edge.

But there is a better way.

A Healthier Approach: Build Demand Before You Build Supply

The biggest mistake new sellers make is trying to secure cases of sealed product first.

That’s the hardest route. Instead, build your TCG business like this:

1. Start With Singles, Not Sealed Product

Selling singles offers:

Higher margins
Lower risk
No allocations
No distributor approval
Easier storage
Faster turnover
True market-driven pricing

You don’t need pallets of sealed product to begin.You just need good cards and good customer service.

2. Buy Local Collections: Your Best Profit Margin

Buying collections gives you:

Huge inventory variety
Great value
Natural community engagement
A reason for players to visit
Content for socials
Massive margins when priced correctly

Collectors are ALWAYS looking to sell. You can provide that service.

3. Create Content & Build Community Trust

This is the secret that separates “random sellers” from “real stores”:

Box openings
Market analysis
Set reviews
“What’s trending” videos
Live buys/sells/trades
TCG education
Tips for grading or storing cards

Content builds:

Credibility
Brand recognition
Repeat customers
Organic inventory flow
Distributor leverage later

You can build a following before you ever touch a distributor.

4. Use eBay, TCGplayer, and Whatnot to Build Sales Proof

Distributors want to see:

Sales numbers
Order history
Community engagement

You can provide that by selling online first.

You don’t need pallets of product. You need consistent sales.

5. How to Avoid Becoming a Scalper (While Still Making Money)

Here’s the sustainable path:

✔ Price sealed product responsibly

Not crazy markups, not forced MSRP — but fair market pricing.

✔ Put limits on high-demand items

Prevent “clean-out” behavior.

✔ Focus heavily on singles

Your best margins with zero drama.

✔ Offer a buylist

Keeps inventory flowing.

✔ Be transparent in your pricing

Your community will respect this.

✔ Don’t chase hype

Chasing FOMO is how sellers burn out.

✔ Be the “fair dealer,” not the “cheap dealer”

People prefer honest pricing over unrealistic pricing.

Final Thoughts: You CAN Build a Real TCG Business — The Smart Way

Opening a TCG store isn’t easy.Allocations, pricing pressure, distributors, market fluctuations — the road is full of challenges.

But you don’t need to become direct.You don’t need pallets.You don’t need to scalp.You don’t need to fight bots and hype cycles.

You need:

Community
Trust
Consistency
Content
Good buying habits
Smart pricing
Sustainable growth

Start small.

Start fair.

Start strategically.

And your TCG business can grow in a way that feels good — not exploitative.

Thornberry Media