Business Idea

Start A Souvenir Shop

About

Starting a souvenir shop requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell souvenirs, or selling souvenirs 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 souvenir shop ➜

Key stats

market size
$18B
revenue (monthly)
$2.5K
starting costs
$28.3K
gross margin
20%
avg product price
$998
time to build
6 months
growth
Email marketing
business model
E-Commerce
time investment
Full time

About

Starting a souvenir shop requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell souvenirs, or selling souvenirs 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 souvenir shop ➜

Key stats

market size
$18B
revenue (monthly)
$2.5K
starting costs
$28.3K
gross margin
20%
avg product price
$998

 

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

Startup Costs

Min Startup Costs Max Startup Costs
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 $150 $2,470
Advertising & Marketing Costs $75 $5,536
Other Expenses $0 $800
Total Startup Costs $3,445 $53,173

Successful Businesses

Business URL Rank
Utshob.com utshob.com #24,349
hardtofind hardtofind.com.au #84,808
Ace Hotel Shop shop.acehotel.com #110,558
PREZZYBOX prezzybox.com #126,659
The Catholic Company catholiccompany.com #135,790
RNLI rnli.org #158,643
GiftsnIdeas giftsnideas.com #169,585
New York Transit Museum Store nytransitmuseumstore.com #195,222
The Jerusalem Gift Shop thejerusalemgiftshop.com #202,055
Gifts Australia giftsaustralia.com.au #234,554
Kpopshop kpopshop.com #252,282

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 souvenir shop. 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.
Unlimited income potential With starting a souvenir shop 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 souvenir shop comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Cons Description
Low margins The gross margins for your souvenir shop are typically around 20%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a souvenir shop, 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.
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 souvenir shop, 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 souvenir shop, 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.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

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

    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.