According to a report by Statista, the global market for sex toys was worth 28.9 billion U.S. dollars and is expected to grow by 9.3% annually. This shows that there is a high demand for these products and a profit potential. 

That’s why more and more people are planning to start a sex toy business these days. Here, we put together some important steps in how to sell sex toys you should follow. Without any further ado, let’s check them out.

Sex toys in 10 steps

1. Make a business plan

This needs to be the first step in how to start a sex toy business. A business plan is a document that outlines your goals, strategies, and financial projections for your sex toy business. It helps you define your target market, identify competitors, and plan your marketing and sales activities. A business plan also helps secure funding from investors or lenders if needed.

For instance, some of the key elements of a business plan for businesses that sell sex toys are:

• Business name and description: This is where you introduce your business name, logo, slogan, and mission statement. For example, Sexy World Browns Plains is a great name for a sex toy store that offers a wide range of products for all genders and preferences in a discreet and friendly environment.

• Market analysis: This is where you research the size, trends, and characteristics of your potential customers, as well as the opportunities and threats in the industry. You can gather data from online sources, surveys, interviews, or focus groups. For instance, according to Thrive Global Community, the global adult toy market is expected to reach $35.5 billion in 2023, with millennials being the main consumers.

2. Work on the financing application

This is necessary unless you have enough money to start your own store. A good place to start is your personal bank, where you may have a better chance of getting a loan. You should also inquire about a business checking account and how to accept customer credit card payments. 

3. Find a decent location

One of the most important steps in starting a sex toy business is finding a decent location for your store. You want to avoid areas where there is already a lot of competition from other sex shops. Instead, you should look for places where potential customers are interested in adult products. For example, you could choose a location near nightclubs, hair salons, dress stores, and other businesses that cater to adults.

A survey by the Sex Toy Association reveals that 67% of customers prefer to shop for sex toys in person rather than online. Thus, finding a decent location can boost your sales and profits.

4. Obtain licensing needed to start a sex toy business legally

How to sell sex toys legally? You need to obtain the necessary licensing from your city administration. The requirements may vary depending on your state and city, but you will likely need at least a business license. This is important because running a sex shop may involve many interactions with the government, such as taxes, regulations, and inspections. You can also contact a government-funded business advisory service for guidance on starting a sex business in your area.

5. Establish wholesale accounts with sex toy wholesalers 

A wholesale expo is a trade show where you can find various products and suppliers for your business. It is a great opportunity to network with sales representatives who can help you choose the best goods for your shop.

For example, if you want to sell men’s sex toys, you can find penis pumps at a wholesale expo. Penis pumps create a vacuum around the penis and increase blood flow. They are popular among men who want to improve their sexual performance or treat erectile dysfunction. 

6. Invest in a POS when you start a sex toy business

One of the essential steps to start a sex toy business is to invest in a reliable point-of-sale system like ConnectPOS. This system offers many benefits for your business, such as managing multiple warehouses, enhancing customer experience, and integrating with various eCommerce platforms. Moreover, ConnectPOS allows you to customize your store layout and create loyalty programs for your customers. 

As per a report by Statista, the global sex toy market is expected to reach $52.7 billion by 2026, so having a robust point-of-sale system can help you gain a competitive edge in this industry.

7. Employ an accountant as you start a sex toy business

This employee should have the skills and experience to use various accounting software, such as MYOB, cashflow manager, etc. These tools can help the accountant track income and expenses, prepare tax returns, and generate reports. 

According to a survey by Accounting Today, 82% of small businesses use accounting software to manage their finances. Therefore, hiring an accountant can ensure you sell sex toys smoothly.

8. Arrange your shop’s layout

You want to create a welcoming and comfortable atmosphere for your customers. For instance, you can position your cash register staff to face the front door so they can greet the customers as soon as they walk in. You can also display your products in a way that showcases their variety and quality. 

A survey by Statista shows that 68% of sex toy buyers consider the product's appearance as an important factor. Given that, you should ensure your shop’s layout highlights the visual appeal of your merchandise. 

9. Hire and manage your employees

To sell sex toys, you must hire and manage your employees effectively. A staff manual is a crucial document that outlines your policies, procedures, and expectations for your workers. It helps you ensure that your store operates smoothly and legally and that your customers are satisfied with your products and services. 

Some of the topics that you may want to include in your staff manual are:

• The mission, vision, and values of your business

• The code of conduct and dress code for your employees

• The health and safety rules and precautions for handling sex toys

• The customer service guidelines and best practices The inventory management and quality control procedures

• The payment methods and sales incentives

• The employee benefits and performance evaluation criteria

• The disciplinary actions and grievance procedures

10. Leverage front windows, showcase as a powerful marketing approach

You can showcase your style and quality by displaying attractive garments in your window and enticing visitors to explore your products. Also, consider using front windows to highlight promotions, new arrivals, or seasonal items that can appeal to different customer segments. According to research, window displays can help you boost foot traffic and brand awareness, differentiate yourself from the competition, and increase sales.

In addition to front windows, you can promote your shop via social networks and on the Internet. You may use platforms like Facebook and Instagram to connect with your target audience, share your story and values, and offer exclusive deals or discounts.

How to start a sex toy business and market it? Another way is to offer coupons and stage demonstrations on your opening day. Coupons can encourage customers to try your products and services and create a sense of urgency and scarcity. Demonstrations should showcase your expertise and skills, and provide value and entertainment for your customers. 

Among the steps above, getting a POS from ConnectPOS is crucial in selling sex toys successfully. For further information about it, contact us!

Source: Sell sex toys