Business Idea

Start A Personalized Gift Business

About

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

If you're interested in how to sell personalized gifts, or selling personalized gifts 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 personalized gift business ➜

Key stats

market size
$20B
revenue (monthly)
$91.4K
starting costs
$32.3K
gross margin
22%
avg product price
$235
time to build
6 months
growth
SEO
business model
E-Commerce
time investment
Full time

About

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

If you're interested in how to sell personalized gifts, or selling personalized gifts 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 personalized gift business ➜

Key stats

market size
$20B
revenue (monthly)
$91.4K
starting costs
$32.3K
gross margin
22%
avg product price
$235

 

time to build
6 months
growth
SEO
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $2,770
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800
Total Startup Costs $4,207 $60,223

Successful Businesses

Business URL Rank
Costco Photo Center costcophotocenter.com #28,015
Odditymall odditymall.com #45,652
Zazzle zazzle.com.au #50,483
Gifts gifts.com #51,471
Personalized Gifts personalcreations.com #59,221
Zazzle Inc. zazzle.ca #63,515
Canvas Prints easycanvasprints.com #66,277
LoveBook lovebookonline.com #73,001
Things Remembered thingsremembered.com #76,847
Knack knackshops.com #85,975
Home Bar Ideas and Bar Accessories homewetbar.com #101,214

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!
Pick & choose the clients you work with Personalized Gift Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Unlimited income potential With starting a personalized gift 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.
Amazing perks and discounts Working in the personalized gift business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Predictable income stream Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
Cons Description
Low margins The gross margins for your personalized gift business are typically around 22%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a personalized gift 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.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Time commitment With starting a personalized gift business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting a personalized gift business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    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.

  • 3

    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.