Business Idea

Start A Gift Baskets Business

About

Starting a gift baskets business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell gift baskets, or selling gift baskets online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a gift baskets business ➜

Key stats

market size
$3B
starting costs
$44.3K
gross margin
25%
avg product price
$47
time to build
8 months

About

Starting a gift baskets business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell gift baskets, or selling gift baskets online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a gift baskets business ➜

Key stats

market size
$3B
starting costs
$44.3K
gross margin
25%

 

avg product price
$47
time to build
8 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Software Expenses $150 $3,044
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800
Total Startup Costs $6,992 $81,680

Successful Businesses

Business URL Rank
The Gift Basket Association gift-basket-association.thinkific.com #2,198
bigbasket business.bigbasket.com #5,665
MrsFields mrsfields.com #64,117
See's Candies business-gifts.sees.com #76,997
Igourmet igourmet.com #123,165
Business Gifts | Corporate Gift Baskets | CorporateGift.com corporategift.com #162,646
Hickory Farms: Gift Baskets & Specialty Gourmet Food Gifts hickoryfarms.com #169,794
1800Baskets.com 1800baskets.com #176,287
The Fruit Company thefruitcompany.com #204,094
The Popcorn Factory thepopcornfactory.com #216,659
Gift Baskets by Design It Yourself Gift Baskets designityourselfgiftbaskets.com #371,817

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Meaningful business connections You never know who you will meet as a gift baskets business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Unlimited income potential With starting a gift baskets business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A gift baskets business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your gift baskets business are typically around 25%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the gift baskets business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a gift baskets business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Word of mouth

    The most tried and true way to grow a gift baskets business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 2

    Partnerships

    Starting a gift baskets business is all about building relationships and becoming an integral part of your community.

    Many entrepreneurs make the mistake of thinking they can do everything on their own. In reality, other businesses (even your competition) and members of your community can be a huge piece of your growth strategy.

    When forming any type of partnership, a lot of energy and time can go into this.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to gift baskets business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜