I am often asked for advice on how to start a baby gift business. As owner of a leading baby gift company for more than 30 years, I guess I am looked upon as someone with the experience and track record to answer the question intelligently. 

Traditionally it has been a young designer looking for advice on how to start a business selling his or her own product ideas.  But in today’s world of e-commerce,  I am finding a more diversified group of people interested in the baby gift category, especially ones with excellent internet marketing skills.

Merits of a baby gift business

First, the baby gift category is recession proof to a large degree. Second, sales are year round and produce a steady & predicable cash flow. Third, baby gifts are profitable, especially in the higher end segment. Finally, the return rate on baby gifts is minuscule compared to other product categories.

Ways to start a baby gift business

1. Sell your own products. Definitely the hardest but potentially most rewarding way to go. In addition to having to design gifts that people love enough to buy, you also have the responsibility to manufacture and sell them wholesale retail or both.  Of course, some of this responsibility can be outsourced.  But the more control you have the better off you’ll be in the long run.  For perspective, Silly Phillie has been designing, manufacturing and selling its own unique products for more than 30 years!
2. Sell someone else’s products.  E-commerce has been a real game changer for the retail business. Many successful e-commerce baby boutiques today only sell products from other manufacturers.  In other words, they leave the hassle of creating products to others, and focus 100% of their attention on sales and marketing. Moreover, they usually have the products they sell “drop shipped” directly to their customer or gift recipient so they never even have to handle the product. Worldwide Brands is a good place to learn more about drop shipping.
3. Buy an established baby gift business.  For those without the patience or time horizon to start a business from scratch, buying an existing business with proven products and sales becomes an attractive alternative. Buying a business is also usually less risky and challenging. For example, someone interested in the baby gift business might consider buying a company like Silly Phillie® for its portfolio of proven product designs, established sales channels, manufacturing facilities and recognizable brand name. Those interested in buying a business should read The SBA article titled “Buy an existing business or franchise” for helpful information on the subject.

In summary, a baby gift business can be creatively exciting and financially rewarding if successful. However, getting started must be approached with a thorough understanding of the category, competitive factors, sufficient capital and a sound business plan. The Small Business Association (SBA) has a helpful article titled “10 steps to start your business” that everyone should read before jumping ahead.

I hope this article has been helpful. Please do not hesitate to contact me with any questions or comments. Thanks for reading!

Phyllis Gordon S’Dao

Owner-Silly Phillie®

phyllis@sillyphillie.com