Becoming a wholesale toy distributor is not as easy as it may sound. Unlike other distribution businesses, you have to take into account kids’ health and safety measures. There have been a lot of incidents where the distributors had to take their stock back because the toys were not safe for kids.
A wholesale toys distribution business is more than just stocking up your shelves with kids’ playthings. Here we have gathered some information to help you start your wholesale toys distribution business in the right way.
So, shall we start?
Market Value of Toys
Before we move forward, let’s discuss the market value of toys globally and in the US and In 2019, the world toy market value was calculated at $90.7 billion. The North American market was leading with $22.10 billion in the US.
The market value of the toy industry is expected to grow many folds by the end of 2023. These statistics clearly show the potential for profitability and growth in the wholesale toys distribution business.
Steps to Start A Toys Wholesale Distribution Business
The following are some essential steps that you need to follow to start a wholesale toys distribution business:
1. Market Research
The first step to start any business is to conduct thorough market research. You need to have full knowledge about top-selling toys, their market rates, and where they have the most demand.
Also, you need to define your target audience. If you are uncertain about what your customers want, your shelves will stay stocked with the toys.
The deeper your market research is, the better chances you will of succeeding in the wholesale toys distribution business. Make a list of the toys that are in demand and narrow down your purchase items. The Wholesale Marketplace will give you an idea about their rates and demand.
2. Understand the Laws
One of the most essential steps in starting a wholesale toy distribution business is knowing about the rules and regulations.
The toy industry has recently become more daunting as parents have become more aware of their kids’ potential safety hazards. If you follow all the rules and guidelines, you can help your toy business avoid scandals and accidents.
Get a Toy Safety Certification Program (TSCP) from the Toy Industry Association (TIA). You should also attend trade shows held by TIA in major cities like New York, Dallas, Chicago, and Miami.
3. Create A Business Plan
After getting all the necessary information, you need to create a business plan for your wholesale toy distribution company. You can establish a strong business base by efficiently stocking up your warehouse and implementing a reliable inventory management system.
Be more considerate about your business investments. Make sure that you buy toys that are in demand. We suggest that, along with the business plan, you should develop a contingency plan. This plan should include ways to handles situations like overstock and out-of-stock.
4. Select Some Manufacturers for toys Wholesale
After stocking up your inventory, you can start looking for toy manufacturers. Contact manufacturers in the US and abroad.
Before getting into a contract, make sure that you hire an attorney to check your document. Because they can help you make sure that your document has all the important points listed, and always go for a toy manufacturer with a good reputation. Visit different wholesalers and distributors in the market to get information about the best toy manufacturers. Select a manufacturer whose rules and policies fit your business requirements.
5. Invest in Technology
If you are starting a Wholesale Business for toy distribution, make sure to invest in technology. For example, get X-ray Fluorescence (XRF) equipment to check toys for harmful lead-based paint.
You need to make sure that you are distributing toys that are 100 percent safe for kids.
In A Nutshell
Starting a Wholesale Toy Distribution business may be difficult, but it certainly has a high profitability rate. You can stand out among your competitors and make your place in the toy market by taking the right steps.
We hope that the information mentioned above can help start your wholesale toy distribution business. Good luck and stay safe!
Read More: How To Buy Beauty Supplies Products Wholesale?
