Start A Gift Baskets Business
About
A gift basket is delivered to the recipient at the workplace or residence. A gift basket business is a noble idea because, with a proper strategy, you can remain in business all year round.
To start a gift basket business, choose a niche, a sales channel, and register your business appropriately. With a proper marketing strategy, you should be able to reach a broader customer base.
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
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
| Office Space Expenses | $0 | $7,000 |
| Employee & Freelancer Expenses | $151 | $352 |
| Website Costs | $223 | $7,215 |
| Business Formation Fees | $5,600 | $20,400 |
| Equipment & Supply Expenses | $66 | $700 |
| Retail Business Expenses | $1,250 | $11,650 |
| Inventory Expenses | $350 | $14,750 |
| Software Expenses | $162 | $3,094 |
| Advertising & Marketing Costs | $75 | $5,286 |
| Total Startup Costs | $7,877 | $70,447 |
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 |
|
Igourmet | igourmet.com | #123,165 |
|
Corporate Gift.com | corporategift.com | #162,646 |
|
Hickory Farms | hickoryfarms.com | #169,794 |
|
1800Baskets.com | 1800baskets.com | #176,287 |
|
The Fruit Company | thefruitcompany.com | #204,094 |
|
Design It Yourself Gift Baskets | designityourselfgiftbaskets.com | #371,817 |
|
All About Gifts & Baskets | aagiftsandbaskets.com | #393,010 |
|
Wine Basket | winebasket.com | #502,735 |
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
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1
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
-
2
Partnerships
A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.
Creating strategic partnerships with an existing business can be a huge win for a startup.
This is considering that a partnership creates a new slate of future options for your startup.
On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.
Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.
-
3
Social Media Advertising
Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.
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