As parents, we must navigate the myriad of mothercare and children’s products. So many products, so little precious time which should be spent with the children instead of doing research or shopping for them. But there are very few places that serve as a one-stop shop for busy parents with product recommendations, advice, and assistance. There lies the baby & kids marketplace business opportunity with tens of Shopify brands as sellers.
The cost of being a parent is nothing to sneeze at. It’s estimated that in countries like the US and the UK, the cost of raising a child to the age of 21 stands at a whopping $300K. Let that sink in for a moment. While the cost is inevitable, the choices you make do make a difference both for us parents financially and for our children's wellbeing.
Countless new and upcoming Shopify brands are ready to storm the market with their sustainably produced, eco-friendly, and child-friendly products, and they’re all looking for a way to enter the market and gain brand recognition from those who matter most - parents.
With a ship's worth of eager Shopify brands, a customer life span of up to 21 years, and a population that has never been more willing to purchase goods online, running a successful marketplace for children’s products has never been easier or more appealing. The only remaining piece of the puzzle is an automated eCommerce solution that forms the foundation of the business. That’s where Vendo comes in.
But before we explain how Vendo can support your marketplace business, let us first explore the baby and kids’ products industry.
Baby and Kids product categories
The global eCommerce toys and baby products market was worth $202.4 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2028. Demand for toys and baby items is rising in both developed and developing countries, and so is the eCommerce market penetration. Today's parents are millennials who grew up with constant access to the internet, and it is only natural for them to shop online not only for themselves but also for their little ones.
The COVID-19 pandemic has also contributed to accelerating the growth in baby and kids products' online sales. Not only due to the physical store being closed but because of the growing consumer awareness concerning child health and encouraging baby hygiene, which boosted the demand for healthy food, vitamins, and toiletries.
Trends in the baby and kids products industry
Consumer preferences are changing toward high-quality, utility-driven, and premium baby products, which is one of the key driving forces behind the market growth.
Moreover, parents look for products supporting their children's development at various ages and stages. They want items that will aid their child's cognitive, social, emotional, and physical development.
If you're thinking about starting a baby and kids marketplace business, it's essential to be up-to-date on the latest trends in the industry. This way, you'll know what types of products are in demand and how to meet your target market's needs best. Some of the latest trends in the baby and kids products industry include:
- Safety and quality over price: Parents have always wanted the best for their children, and this is especially true for millennial and Gen Z parents. For them, a "quality over quantity" approach is critical, and high-tech gadgets, organic food, and chemical-free baby items are worth the money. In future years, successful businesses in the sector will be those that can satisfy these young parents who seek for the finest for their babies. Quality will reign supreme.
- Natural and organic products: Parents are increasingly interested in buying natural and organic products for their children.
- Technology: Baby and kids' products that incorporate technology are also becoming more popular. For example, parents might be interested in products that track their child's sleep patterns or health data.
- Sustainable products: With the growing focus on environmental consciousness, many parents are interested in buying sustainable products for their children.
- Developmental needs by age group: Products and educational content that support children's development; for example, toys that promote cognitive development or books that help with social-emotional learning.
- Travel with kids: People do not want to stop traveling once they have kids, however, it does get more challenging. So anything that can make a journey with babies and toddlers safer and more comfortable is in high demand from car seats to specially designed travel kits.
- Gifts: Not only parents shop for babies and kids' goods. What about all the aunts and uncles, baby shower guests, and family members invited to birthday parties? Many of them do not have kids of their own and have no idea what to buy for the occasion. Providing them with inspiration and ready categories (e.g., birthday presents for 4-year-old girls) might prove a great strategy to increase sales and expand the target group.
- Balancing parents’ needs versus children’s preferences: Children nowadays have a stronger voice in what is purchased for them, and companies must consider this when addressing the market. Although growth depends on whether parents view the product as being beneficial for their children, decisions to buy are not only based on this perspective. Businesses must also take into account children's own interests and desires for interactive and entertaining solutions.
- Children’s tastes are evolving: Today's youngsters are more sophisticated and informed, largely due to widespread internet access and a wider variety of culturally diverse people. As a result, they acquire knowledge about adult fashions and want to copy their parents' preferences and choices at an early age. This is evident by the rising popularity of mini-me fashion items and children's growing desire to consume more adult food and beverages.
- The New Mom Economy: Millennials and Gen Z moms are more independent than ever, wanting to juggle parenting with work. But this new mentality can put a lot of pressure on young mothers. The rising power of women and modern parenting concepts have led to millennials preferring to "stand up for themselves," instead of obsessing over sacrificing everything for their families.
And it's no surprise that focusing on "making things easy" for mothers is a smart strategy for baby care brands, to begin with. According to Mintel Data, nearly half of all new baby items launched in developed countries like the United States and Japan during the last three years had "convenient" claims regarding the product. Pumping bras and hand-free baby carriers are some examples of new solutions that can alleviate burdens on moms.
Top categories of baby and kids products for your online marketplace
The global baby and kids products industry is divided into the following categories:
- baby and kids' apparel and accessories
- kids gear
- baby cosmetics and toiletries (baby skincare, bath, baby hair care)
- baby food (baby milk, frozen baby food, baby juice, baby food snacks, etc)
- baby safety and convenience (strollers and car seats)
- baby and kids' furniture
- school equipment
You can also categorize baby and kids products by age or development stage:
- newborn (0-12 months)
- infant (12-24 months)
- toddler (24-36 months)
- preschooler (36-60 months)
- school age kids (60+ months)
Where do parents look for recommendations for clothing and gear for their babies and children of all ages?
Parents often look to parenting bloggers and influencers for recommendations because they trust their opinion more than commercials.
Online parent communities and swap groups
Online parent communities and swap groups provide a way for parents to connect with other parents to ask questions, get recommendations, and find good deals on baby items and kids gear.
Friends and family members
Parents want to be sure that they are making the best choices for their children, so it is obvious for them to turn to the people whose opinions they trust most.
A baby and kids marketplace business has an opportunity to tap into this by becoming a trusted source of information for parents. By providing tips and tricks for choosing the right products, businesses can build trust with parents and become a go-to source for information. Baby and kids websites that are able to build trust with parents will be well-positioned for success.
Examples of successful baby and kids online marketplaces:
Massive marketplaces offering every kind of product like eBay or Amazon are not the best place for busy parents to look for kids and baby items. The first reason is that parents have to sift through a lot of listings to find what they want. Baby and kids products are also commonly counterfeited items on these platforms, which can be dangerous for children. In addition, many parents prefer buying from brands they know and trust rather than unknown sellers. Dedicated baby and kids marketplaces have the advantage of being able to offer more personalized service, including filtering products by age or child's development stage.
Maisonette is the leading baby and kids marketplace for stylish clothing and designer fashion. It has also launched its own inhouse brand called Maison Mini.
Kidizen is a baby and kids marketplace that allows parents to buy and sell both new and used children's clothing. It is similar to other resale marketplace businesses, such as ThredUp and Poshmark.
Babyish is an Australian online marketplace that provides a platform to buy, sell and hire baby goods.
Child-specific brand awareness
Children are not discerning with brands or reputation, so you only need to worry about an appealing product. Where it gets tricky is convincing parents that the item is worth their money. According to a survey conducted on parents of under-10s, the brands that are resonating most with those who hold the budget are as follows:
- LEGO 17.03%
- Disney 7.55%
- Fisher Price 4.48%
- Mothercare 4.10%
- Next 3.20%
- GapKids 2.18%
- V-Tech 2.05%
- Pampers 1.92%
- Nike 1.92%
- Tommee Tippee 1.54%
Baby and kids brands that are setting the trends
The Honest Company by Jessica Alba
Safe and sustainable products that are also effective are recommended by the Hollywood star Jessica Alba who is a mother of three. Besides baby items, there is also something for busy mums such as women's health and beauty products. Customers can save money by subscribing to custom bundles subscriptions.
Hello Bello by Kristen Bell and Dax Shepard
Hello Bello offers premium and affordable plant-based products that are mostly sold in bundles (fundamental bundle, diaper bundle, vitamin bundle, etc.)
Nudnik clothes are modern and timeless while being made from pre-consumer textile waste, or what is commonly known as 'cutting waste' or 'off/cut fabrics’. The creators utilize materials that would have gone to a landfill or an incinerator, which reduces pollution significantly. You can find sizes 1 through 7 years old available at Nudnik.
Jazzy Organics is founded on the idea that natural ingredients are better for children's delicate skin. They aspire to provide high-quality, soft, comfortable organic clothing for babies and kids. Their trendy yet simple designs include must-haves for babies like rompers and bodysuits, hats, or blankets as well as products for kids from 1 through 4 years old.
What features should a successful baby and kids marketplace have?
- Quick access to the right products:
- A user-friendly interface: A baby or kids marketplace should be easy to navigate and use. Product categories addressing the parents and children's needs are key growth drivers.
- Filtering: Making it easy for busy parents to browse through products not only by common categories but also by child's age and development stage
- Search: Looking for products with keywords, in certain categories or from certain brands.
- Expert advice: create content with parental advice and product recommendations. Vendo allows you to have a blog intertwined with shoppable products.
- Customer recommendations: Use Reviews.io and Vendo integration to monitor and grow your brand's online reputation.
- Bundles, kits, and subscriptions: Increase the average order value and customer retention rate by introducing product kits and bundles as well as a subscription service.
- Wishlists to help customers quickly and easily track down the product they previously liked but were not ready to purchase.
How to start a baby and kids marketplace business with Vendo in 5 easy steps
- Come up with a niche. What is your angle? Are you into single moms and dads? Into multi-generational families and rational gifting? Into child development? A certain parent and child demographic?
- Start a Free Trial and customize your online marketplace UX
- Find suppliers and leverage the seamless integrations with Shopify, WooCommerce, Magento, that Vendo offers.
- Onboard suppliers and sync their online stores with your marketplace.
- Start selling!
Start a baby and kids marketplace to help busy parents search for the exact goods they need for their children. Curate the products for your target group and provide them with expert advice. There are so many angles to make your marketplace stand out. Vendo will support you with your marketplace setup and vendor onboarding so you can focus on growing your business.