Toys are one of those very few products that will be purchased independently over time. These are extremely popular products worldwide. Have you ever wondered if you can also begin your store and sell toys online? Is it even a profitable business?
Today, more and more brands are creating toys that are gaining popularity not only among their existing customers but also new ones. Hence, competition in this sector is growing. You can build your brand that targets a specific audience to find success and large profit margins online.
This blog discusses the potential of the online toy business and highlights the top strategies for ensuring its success.
Let’s dive in!
Analysing the Profit Potential of Online Toy Business
Innovation and creativity are constantly needed in the world of toys and games. These are products that will always be in demand. The toy market has reached a value of about 1.5 billion US dollars in the year 2022. This value is projected to become double by the end of the year 2027. Thus, the lucrative nature of this market is high. It is also seen that the profit margin while selling toys can range between 25% to 30% per annum.
Parents are likely to always buy toys for their children, which is why they are never out of fashion, particularly cloth dolls. Legos are the prime example of evergreen toys. Innovation and creativity can also run wild when it comes to toys. The kind of raw materials used to make the toys have become a key focus while manufacturing toys. Safe and fun toys are popularly sought after.
In India, the eCommerce market for toys falls under the category of the hobby and the leisure market. The Indian eCommerce toys market is expected to hit 2,093.5 million US dollars by 2024. This sub-category will account for 9.6% of the hobby and leisure eCommerce market in India. Growing at a CAGR of 21.2%, the toy eCommerce landscape is expected to reach a market volume of 4,523.6 million US dollars by 2028. These numbers promise quite a profitable future for the toy eCommerce industry in India.
And it’s not just in India. The global online market for toys and games is expected to grow by 17.84 billion US dollars between 2024 and 2028, growing at a CAGR of 6.32%.
A Guide to Launching Your Online Toy Business
Here are some steps that you must follow while building your eCommerce toy store:
- Picking a Niche for Toys: The world of toys is extensive. Choosing the right sub-category is critical. You must ensure that the toys you choose to sell stand out from your competitors. Although the toys are used by the kids, the parents become the target audience here. The toys that your target finds appealing include the following:
- Helps in the cerebral development of the child
- Uses creative methods to keep the child engaged
- Eco-friendly and non-toxic
- Have great significance to use and culture.
- Business Finances Management: How much should you invest upfront to begin your business? The good part of having an eCommerce business is that you can start with a very small sum. When you are ready to sell toys online, you can begin your online business. All you need is a laptop or tablet or even your smartphone with a steady internet connection. The areas that mainly require a small investment include the following:
- The shipping and logistics
- The packing material
- Inventory level management
- Marketing and advertising
- Sourcing the Products You Want to Sell: This is the area where you will need to conduct some research. You will have to understand which manufacturers sell the type of products you want to sell. You must analyse the costs here and pick one that suits your purpose best. Buying the toys or sourcing them in wholesale quantities can help you stock up your inventory at affordable prices. You can also choose to collaborate with local artisans and craftsmen.
- Pricing Your Products: All the costs involved in sourcing, packing, and logistics must be considered while pricing the toy for sale. The key to pricing your products depends on the factors given below:
- The gain you make at the end of the sale.
- The price your buyers are willing to pay.
- The price at which your competitors are selling the same products.
- Building Your Online Toy Store: Once you have sourced and placed your products, you can begin building your online store. You can start by developing a website for your business and slowly begin to establish relationships with your clients.
Different Types of Toys Sold Online
The different types of toys that can be sold online include:
- Toys for preschoolers and infants
- Ride-on toys
- Role-play toys
- Cars and remote control toys
- Board games and group games
- Playhouses and sports toys
- Set building games
- Educational and value-added toys
Best Selling Toys in the eCommerce Market
The trend in toys is continuously changing. With more creativity and innovation, the types of toys in demand also vary. The best-selling toys in the eCommerce market to date are listed below:
- Action figures
- Board and card games
- Building blocks and clay
- Dolls and educational toys
- Plush toys
- Remote control toys
Maximising Success in the Online Toy Business: Top Strategies to Follow
Creating visibility for your brand is crucial to being able to sell toys online successfully. As an online seller, you will have to do several things to bring your brand its visibility. The following strategies will help you bring success to your toy brand:
- Social Media: You can develop accounts on social media for your brand to show the users what you do and what they can get from you. Reaching your audiences and potential clients must be your goal. Creating relevant content that showcases your products and what makes your brand stand out can help bring in visibility.
- Paid Marketing Strategies: By paying to advertise your brand on different mediums like Google, you will be able to showcase your brand better. You must create high-conversion advertisements to sell toys online. While doing so, you must ensure that your customers are able to find what they seek.
- Optimising for Search Engines: Make your website search engine friendly through optimisation to sell toys online. Most people perform a Google search when they hear of a new brand. Thus, your target audience will look for your brand on Google, and your brand must rank high on this search engine for them to find you. Implementing effective SEO strategies and best practices can help you secure a spot in the top search results. For this, you must:
- Choose the right keywords so that your target audience can find your brand.
- Organise your online store categories.
- Ensure that all your product titles, descriptions, tags, etc., have the right keywords.
Conclusion
Today, visiting a store and making a purchase is almost non-existent. The trend has also reached the world of toys and games. Selling toys online is an extremely lucrative idea as the demand for toys is almost constant. Innovation and creativity are key to increasing sales rates and making more gains when it comes to toys.
Although toys are used by children, the parents form the target audience. Hence, you must market your products such that they seem appealing to the parents. Your toys must have a creative aspect combined with beneficial features that can help the development of the child. The material used for the production of the toy also matters. You must employ the right strategies to improve the visibility of your brand to sell toys online to more and more customers.
