How to Start a Gift Basket Service? [Step-by-Step Guide]

. 6 min read
How to Start a Gift Basket Service? [Step-by-Step Guide]

Starting a gifting business can be highly profitable because the demand for gift items is high in the market. It is one of those small-scale business ideas that you can start from your home. Many people buy gift baskets for their friends and families. So, you can start this business to earn income. You can also customise the gifts as per your customers’ requirements to make them more personalised.

A gift basket business requires several steps for its establishment. It includes developing a niche, sales channels, registration of the business, licensing and permits, design, marketing plan, business plan, etc. It can be overwhelming to start this business without prior knowledge in the fields. But we got you covered. You can refer to the steps below to start your gift basket business.

How to Start Gifting Business?

The gifting business is one of the best business ideas to start in India. You can start your business by following the steps listed below:

1. Find a gift basket niche

The first step in starting your gift basket business is to find a niche. A niche helps you stand out from your competitors. A niche will also help you focus on the needs of your target market. It is essential to provide the best services to your customers who are interested in your business’s products.

You can find a niche by listing your interests in a gift basket business. It includes your passions and the goals of your business. Once you list your goals, determine the audience potential. You need to make sure that your gifting business has a localised demand in your area. After that, research your potential profits. You need to make sure that your idea is profitable and aligns with customers’ needs.

2. Create a business plan

A gifting business is one of the best unique business ideas, and it requires a proper business plan. It is essential to plan out the nitty-gritty details of the business. It helps you streamline your next business steps. A business plan will elaborate on the business operations expenses, management costs, and how long it will take to earn profits. A business plan consists of various components, such as:

  • Market analysis: Your business plan must include market trends and research of your competitors’ businesses. It must meet your customers’ expectations and requirements.
  • Business name, location, and logo: Your business must have a catchy and trendy name aligned with our business goals and vision. It should explain the purpose of your business. It helps your customers understand your business better.
  • Marketing plan: The marketing plan includes the advertisement and promotion of your business. You need to set a budget for your marketing costs that will help you promote your business as you go.
  • Financial projections: Financial projections help you determine the profits, revenues, and sales of your business. You can forecast the financial data to budget your cash flow and expenses.

3. Capital and investment

The next step in starting your gifting business is raising capital and investment. It is essential to draw up a budget for your business first. The initial investment required for a

is between INR 1 lakh and 3 lakh, depending on the scale of the business. It can go as high as INR 10-15 lakhs. It can be expensive because it requires decorations and interior designs to attract more customers.

It is one of the most profitable small business ideas from home. You need less capital if you are starting this business from your home. You can sell your gift baskets online via a professional website or social media platforms.

4. Choose a sales channel

The next step is to choose a gift basket sales channel. It is essential to choose where and when to sell the gift baskets. If you are starting the business from home, it requires a website. However, a storefront requires more investment, a proper location, and renting process. A physical store makes your business more visible and enables faster business growth.

You can also sell your gift baskets online. It is a more flexible and cost-effective way to sell your gift items. On the flip side, it can be hard to build a customer base as there are several gift basket businesses online already. It can be hard to sell your products initially. But, with proper marketing and promotion, it can be easy.

5. Source products for gift baskets

You can source your gift products from various wholesalers and retailers. You can use an online directory to find the wholesale suppliers near your area. You can also attend merchandise trade shows to source your supplies. Apart from that, you can purchase from wholesale distributors directly. You can also order wholesale products through POS systems.

6. Design and price your products

After you identify your suppliers, you need to design the products and price them right. To decorate your products, you need empty baskets, bows, ribbons, tags, crafting tools, paper shreds, fillers, heat guns for packaging, etc. Another important aspect is pricing. You need to price your products according to the customers’ needs. If you price them too high, customers might not come. If your prices are too low, it will affect your revenues and profits.

7. Advertise your business

The gift basket business is one of the small business ideas. So, it requires promotion and marketing. It will help you reach a large audience. You can advertise your business by combining traditional and modern marketing tactics. You can advertise using your own website or by using e-commerce platforms. You can also use paid ads to promote the business.

a man is using laptop and laptop shows advertising on screen


A gifting business is one of the unique small profitable business ideas that you can start from your home. However, starting a gift basket business can be overwhelming because it involves multiple series of steps. It is considered one of the best new business ideas as it calls for creativity, passion, and purpose. If you are looking to start a gift basket business, you can refer to the step-by-step guide mentioned in the article.

Also read:

1) How to open a gift shop in 7 easy steps?
2) Wedding Season is On! Here are The Best 20 (+1) Gifting Ideas for Wedding
3) Here's How You Can Create A Perfect Business Plan in 8 steps
4) How To Do Planning & Manage An Online Business?

5) OkCredit: All you need to know about OkCredit & how it works.

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Ans. There are many popular gift items that you can put in a gift basket. It includes crackers, cheese, popcorn, beauty and health products, cookies, nuts, pretzels, doughnuts, make-up products, toys for children, chocolates, beverages, etc. You can also add customised products for your customers as per their requirements.  

Q. What problems can I expect while starting my own gift basket business?

Ans. Every business faces problems at the start of the business. The common problems faced by a gift basket business include gifts delivered to wrong customers, delivery delays, cancelled orders, customers requesting a new gift, broken products, etc. You can open 24/7 query services for your customers to provide the best customer service.

Q. What is the average price of a gift basket in India?

Ans. Pricing is essential for the gift basket business. The average price of a gift basket is INR 1,300 to INR 15,000. It depends on the gift items and the size of the gift basket. You can customise your gift items to increase or decrease the prices of a gift basket as per your requirements.