Step-by-Step Guide to Start an Online Toy Store

Step-by-Step Guide to Start an Online Toy Store

Table of Contents

  1. Introduction
  2. The Growing Toy Industry
  3. Methods to Start an Online Toy Store
    • 3.1 Drop Shipping Store
    • 3.2 Buying and Holding Inventory
  4. Researching Toy Suppliers
  5. Registering Your Business
  6. Opening a Business Bank Account
  7. Buying Web Hosting
  8. Hiring a Website Designer
  9. Setting Up a Merchant Account
  10. Spreading the Word About Your Business
    • 10.1 Creating a Logo and Business Cards
    • 10.2 Online Marketing Materials
  11. Popular and Profitable Toys to Sell
  12. Startup Costs
  13. Finding Toy Suppliers
  14. Conclusion

How to Start a Toy Store Online

Starting an online toy store can be a lucrative venture, especially considering the steady growth of the toy industry. With children around the world receiving thousands of dollars worth of toys each year, the global toy market is expected to reach $25 billion by 2025. In this guide, we will outline the steps to start a successful toy store online, whether you choose to use the drop shipping method or hold your own inventory.


The toy industry has experienced consistent growth, making it an ideal market for aspiring entrepreneurs. Not only can starting an online toy store be financially rewarding, but it also allows you to make a difference in the lives of children. In this guide, we will provide you with all the information you need to kickstart your own online toy store and tap into the thriving toy market.

The Growing Toy Industry

The toy industry has witnessed remarkable growth year after year, with no signs of slowing down. The demand for toys is driven by new technologies and innovative products that captivate children's imaginations. This presents a significant opportunity for entrepreneurs to tap into this ever-expanding market and profit from the high demand for toys. The average child worldwide receives approximately $1000 worth of toys each year, making the toy industry a lucrative one to enter.

Methods to Start an Online Toy Store

There are two main methods to start an online toy store: drop shipping and buying and holding inventory. Each method has its advantages and considerations, and it is crucial to determine the best approach for your business.

3.1 Drop Shipping Store

A drop shipping store involves partnering with toy suppliers who handle the shipping process. As a drop shipper, you do not need to maintain inventory or manage the shipping logistics. Instead, when a customer places an order on your online store, you simply forward the order details to the supplier, who then ships the product directly to the customer. This method is ideal for those who have limited capital or prefer not to deal with inventory management.

3.2 Buying and Holding Inventory

Alternatively, you can choose to buy and hold inventory for your online toy store. This approach allows you to have complete control over the products and shipping process. You purchase wholesale toys in bulk from toy suppliers at a discounted price, store them in your own warehouse, and ship them out when orders are received. While this method requires more initial investment and inventory management, it offers greater flexibility and potential for higher profit margins.

Researching Toy Suppliers

Regardless of the method you choose, conducting thorough research to find reliable and affordable toy suppliers is crucial. Suppliers play a significant role in the success of your online toy store, as they provide the products you will sell. Whether you opt for drop shipping or buying and holding inventory, finding a reputable toy supplier is key.

Registering Your Business

Before you can start buying wholesale toys or partnering with drop shipping suppliers, you need to officially register your toy store business. This involves obtaining a Federal EIN number, forming an LLC or Corporation, and obtaining a reseller or retail merchant certificate, depending on your state's requirements. Registering your business not only legitimizes your operations but also enables you to purchase toys tax-free.

Opening a Business Bank Account

As a business owner, it is essential to separate your personal and business finances. Opening a business bank account allows you to keep track of your toy store's finances and provides a professional appearance to your customers. You can choose to work with a bank you already use or explore options specifically designed for business banking, such as Square, which offers free online business checking accounts.

Buying Web Hosting

To establish your online presence, you will need to purchase web hosting services. Bluehost is a reliable option for e-commerce stores and startup websites. They offer a range of plans that include a free domain, SSL certificate, and 24/7 tech support. Once you have purchased a hosting plan, you will receive login credentials that you can provide to your website designer.

Hiring a Website Designer

Creating an attractive and user-friendly website is crucial for the success of your online toy store. If you have little to no experience in web development, you can hire a website designer through platforms like Fiverr. Provide them with your Bluehost login details and communicate your vision for the website. A professional website designer will bring your ideas to life and ensure your online store is visually appealing and functional.

Setting Up a Merchant Account

To accept payments from your customers, you need to set up a merchant account. Popular options include PayPal, Square, and Stripe. Square offers a seamless payment integration process and enables you to accept payments online, via email, or over the phone. By providing your website designer with the necessary account details, they can complete the payment integration process on your website, allowing your customers to pay you conveniently.

Spreading the Word About Your Business

Once your online toy store is up and running, it's time to promote your business and attract customers. Effective marketing strategies play a crucial role in driving traffic to your store and increasing sales. Here are some methods to spread the word about your toy store:

10.1 Creating a Logo and Business Cards

Developing a unique and memorable brand is essential. Utilize resources like 99designs to create a professional logo and design eye-catching business cards. A visually appealing brand identity will make your toy store stand out and leave a lasting impression on potential customers.

10.2 Online Marketing Materials

Utilize online marketing tools like Envato or Canva Pro to create marketing materials like graphics and flyers. These platforms offer a wide range of templates, allowing you to design captivating visuals that promote your toy store. Online marketing materials can be shared on social media, websites, and other digital platforms to increase brand awareness.

Popular and Profitable Toys to Sell

To maximize your toy store's profitability, it is crucial to offer popular and in-demand toys. Some of the top-selling items in the toy industry include video games, dolls, action figures, learning games, and building blocks. Additionally, you can consider selling scooters, sports equipment, and water toys to diversify your product range and bring in additional revenue.

Startup Costs

The startup costs for an online toy store vary depending on the chosen method. Drop shipping stores typically have lower startup costs, ranging from $700 to $2000 on average. However, if you decide to buy and hold inventory, be prepared to invest a more substantial amount of money. Conduct thorough financial planning to ensure you have sufficient funds to cover inventory purchasing, marketing, web hosting, and other essential expenses.

Finding Toy Suppliers

Finding reliable and affordable toy suppliers is essential to secure a steady supply of products for your online store. For a comprehensive list of toy suppliers, you can refer to the link provided at the bottom of the video. This resource will assist you in connecting with reputable toy suppliers who offer discounted prices.


Starting an online toy store can be a lucrative and fulfilling business venture. With the right strategies, research, and dedication, you can tap into the growing toy industry and build a successful online presence. By following the steps outlined in this guide, you can navigate the process of starting an online toy store with confidence. Remember to conduct thorough research, identify popular toys to sell, and effectively market your business to attract customers and drive sales.