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Gift Wrapping

By: Startup 101
Last Updated: December 20, 2024

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Annual Revenue

N/A

Number of Businesses (in US)

N/A

Average Annual Revenue

$500 - $2,000

Startup Costs

60%

Average Profit Margin

0 - 5%

Projected Annual Growth

Table of Contents

Table of Contents

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Gift Wrapping Business Overview

Gift wrapping services transform ordinary packages into beautifully presented gifts for customers who want professionally wrapped presents. These businesses serve individuals who lack time, skill, or materials to wrap their own gifts, as well as those seeking a higher-quality presentation than they could achieve themselves.

Professional gift wrappers work with various package shapes and sizes, from small jewelry boxes to oversized items like furniture. They stock multiple paper designs, ribbons, and embellishments to match different occasions and personal preferences. Many gift wrapping businesses also handle special requests such as eco-friendly materials or custom color schemes, while offering convenience through flexible drop-off and pick-up options.

The most common business models for gift wrapping services include:

  • Retail Location Model: Operating from a fixed retail space, often in malls or shopping centers
  • Mobile Service Model: Traveling to events, homes, or offices to provide on-site gift wrapping
  • Online Order Model: Customers ship items to the business for wrapping and delivery back to them
  • Kiosk Model: Temporary or seasonal locations in high-traffic areas during peak gift-giving times

Related: Checklist to Start a Business

Industry Summary

Gift wrapping services operate in the Personal Services sector under NAICS code 812990: All Other Personal Services. This industry classification includes various personalized services that enhance special occasions and daily life.

Gift Wrapping Services Industry Size & Growth The gift wrapping industry maintains steady business through e-commerce platforms, retail locations, and independent services. While the rise of online shopping has changed how people buy gifts, it has created new opportunities for gift wrapping services. Many e-commerce platforms now partner with wrapping services, expanding the market beyond traditional retail settings.

Number of Gift Wrapping Services Since most gift wrapping businesses are small, privately owned services, precise industry data remains limited. The business landscape consists primarily of independent operators and seasonal services, with some larger retail operations offering gift wrapping as an additional service.

Gift Wrapping Services Profit Margin Gift wrapping services maintain a profit margin averaging 60% on their wrapping services, indicating strong profitability potential when operations are managed efficiently. This margin accounts for the cost of materials and labor against service pricing.

Market Factors The industry sees consistent demand from birthdays, weddings, anniversaries, and holidays throughout the year. However, consumer spending patterns influence the market, with economic downturns often leading customers toward do-it-yourself options. Despite these fluctuations, the continuous nature of gift-giving occasions supports ongoing demand for professional wrapping services.

Costs To Start a Gift Wrapping Service

Starting a gift wrapping service typically costs between $500 and $2,000, reflecting home-based or mobile operations.

There are several costs when starting this type of business, but here are some of the biggest expenses:

Initial Inventory: The starter inventory should include a variety of wrapping papers, ribbons, bows, and decorative elements to serve different occasions and preferences. Quality wrapping materials in sufficient quantity typically cost between $200 and $600.

Equipment and Tools: A gift wrapping service needs various cutting tools and measuring devices. Basic equipment includes professional-grade scissors, paper cutters, measuring tools, and storage solutions. A complete equipment package ranges from $150 to $400.

Mobile Setup: A portable workspace requires folding tables, storage bins, transport equipment, and display items. Setting up a mobile operation typically costs between $200 to $600.

Payment Processing: A reliable payment processing system, including a card reader and basic accounting software, ranges from $100 to $400.

These estimates provide a general idea of startup costs, but actual expenses will vary.

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