Personal Shopping Business Overview
Personal shopping businesses provide customized shopping assistance to clients who need help selecting and purchasing items like clothing, gifts, groceries, or household goods. These professionals work with busy professionals, seniors, parents, and people who want expert guidance for special occasions or wardrobe updates.
Personal shoppers combine product knowledge with organizational abilities to source items that match their clients’ preferences, budgets, and needs. They often develop ongoing relationships with clients, learning their tastes and lifestyle requirements to make informed purchasing decisions.
The common business models for personal shopping services include:
- Independent Contractor: Individual shoppers who work directly with private clients on a per-service basis
- Corporate Service Provider: Shopping firms that contract with businesses to serve their employees or executives
- Retail Partnership: Personal shoppers who operate within department stores or boutiques to assist store customers
- Digital Platform: Shopping services that connect clients with personal shoppers through mobile apps or websites
Related: Checklist To Start A Business
How Do Personal Shopping Businesses Make Money?
Personal shopping businesses primarily generate income by charging clients for their shopping and consultation services. Most charge either hourly rates for their shopping time or flat fees based on the size and complexity of the shopping task.
Industry Statistics
Personal shopping and concierge services operate under NAICS code 812990 All Other Personal Services. Here are some statistics about the industry.
Personal Shopping Industry Size & Growth: The personal shopping and concierge industry generated $2.1 billion in revenue last year. Over the past 5 years, the industry saw an annual decline of 5.2%. However, projections indicate slow growth in coming years as economic conditions improve and demand increases for entertainment and leisure activities. (IBISWorld)
Number of Personal Shopping Businesses: There are 99,469 personal shopping and concierge businesses operating across the country. The industry remains highly fragmented, with no single company holding a significant market share. This creates opportunities for new business owners to establish themselves in local markets. (IBISWorld)
Personal Shopping Profit Margin: Profit margins tend to range from 20% to 30% based on business size, services offered, and operating costs. Personal shopping businesses typically maintain higher margins through value-added services like style consultation and corporate contracts. (IBISWorld)
Startup Stories
Costs To Start a Personal Shopping Business
Starting a personal shopping business typically costs between $2,000 and $15,000. This range includes both home-based operations and those with dedicated retail space.
There are several expenses to consider when starting a personal shopping business. Here are some of the larger costs:
Transportation: A reliable vehicle is necessary for shopping trips and client meetings. The cost of a used vehicle can range from $5,000 to $10,000, though many personal shoppers start by using their existing vehicle.
Inventory Management Software: Software systems help track client preferences and purchases and organize shopping lists. These systems typically cost between $300 and $1,200 annually, and options range from basic tracking tools to advanced customer relationship platforms.
Business Insurance: Professional liability and general business insurance protect against potential claims from dissatisfied clients or accidents while shopping. Depending on coverage levels, annual premiums typically range from $500 to $2,000.
Storage and Organization: While many personal shoppers work from home, some invest in storage solutions for client purchases and returns. Basic storage and organizational systems can cost between $200 and $1,000.
These estimates are approximate, and actual costs will vary based on location and business scale.