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How to Start a Handbag Business: A Step-By-Step-Guide

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It’s likely if you’re here, you either have fun buying handbags, you feel like you have a knack for choosing handbags others would like, or you enjoy making them, and you want to know if starting a handbag business is a good option for you. In this article, we’ll discuss how to start a handbag business.

I’ll answer the following questions:

  • Is the handbag business profitable?
  • How does the handbag business make money?
  • What are the start-up costs for the handbag business?
  • How do I know if the handbag business is a good option for me?
  • How to Start a Handbag Business step by step?

I’ll also talk about the steps to get started. If that’s what you’re looking for, read on.

Is There Enough Room for Another Handbag Business?

According to a report released by Grand View Research, the global handbag market is projected to grow at an average annual growth rate of 5.4%, reaching $67.85 billion by 2025.

However, driven by unprecedented supply chain disruptions caused by the global COVID-19 outbreak, the apparel, footwear, and accessories industries have slowed down in 2020.

Nonetheless, given the increasing popularity of e-commerce, the fashion industry is likely to recover within the expected time frame. New fashion trends will support the growth of the market post-pandemic.

Hence, this may be a great time to plan and set up your handbag business to meet the growing demands in the future.

Is the Handbag Business Profitable?

To run a profitable business, you need to set a budget and ensure that your revenue exceeds your expenditure.

This is the formula used to calculate profit:

Revenue-Expense = Profit

You can definitely run a profitable handbag business as long as you make sure your prices are high enough that you can cover your expenses, pay yourself, and still have money left afterwards.

How does the Handbag business make money?

There are many ways a handbag business can make money. 

  • You can design your bags and sell them to wholesalers, retailers, or directly to the customers.
  • If you don’t want to design, you can sell handbags by established designers as an affiliate, dropshipper, or reseller.
  • You can add handbags to another line of fashion products like clothes and shoes that you already sell.
  • If you don’t want to invest much in stocking up the product, you can sell only pre-ordered handbags.

What are the start-up costs for the Handbag business?

The initial cost of setting up a handbag business depends on many factors: whether you plan to start a business at home or a store. The channels the bags are sold through. And many other decisions will affect your startup costs. However, let me give you a basic idea of ​​the expenses you are likely to incur in the process.

  • Raw materials
  • Designing Tools
  • Website
  • Photography
  • Advertisements
  • Labor charges
  • Transportation and Logistics
  • License and permits
  • Utility bills

How do I Know the Handbag business is a good option for me?

When you create eye-catching handbag designs and your friends and family are ready to pay you for these bags, turning your talent and passion into a business is a good idea.  You can also start a handbag business by procuring handbags from other designers in bulk and reselling them to retail customers.

 The fashion industry is competitive, but if you have a unique idea, a good fashion sense, and a strong will to make it great, you will get there.

How to start a Handbag business step-by-step?

If you are still reading, then I would like to believe that starting a handbag business is on top of your mind. And, I am excited to tell you more about how to establish a handbag business, step-by-step.

1. Create a Business Plan

Planning is the most crucial step. Before you start selling handbags to customers, you should have the brand name, business structure, and processes ready. You need to determine the type of bags you would sell and the way your business will operate. 

You also need to decide how to advertise and promote your business? What would your pricing strategy be, and what are your sales goals?

Your target customers

Handbags have a highly competitive market. Thus, finding your niche is important. Who do you want to sell your bags to, and how do you want to sell them? Do you want to appeal to cosmopolitan fashionistas with luxurious designs, or focus on the more casual and affordable segment? Would you like to sell as a wholesaler or a retailer?

The type of bags you want to sell is critical in determining how to find the customers and reach out to them. Make sure you are clear about your target customers when starting the design process.


You need money to buy raw materials, design tools, and fund other fixed and running costs. It is therefore important to decide how you will finance each expense. Depending on your niche and business size, you may use your savings or withdraw funds from outside in the form of loans and investments. 

Whichever type of financing you choose, make sure you don’t use all of your savings to build your business. I recommend consulting a financial expert for advice on the best funding options.

Prices and services

You shouldn’t set a price that is too high or too low in comparison to other handbag brands in the market. Consider your cost and the market price to determine a reasonable price for your handbags.

You can also get great insights into handbag pricing by researching e-commerce platforms like Amazon, Shopify, and eBay. Find out what types of bags are selling the most on these platforms and at what price. Accordingly, you can set a competitive price for your handbags.

Marketing and advertising

Great designs and quality handbags will make your business profitable. However, before that, you need to market your bags to the target customers. How would they know that your business exists? The marketing and advertising strategy and budget are the most crucial part of a business plan. Before you start selling, plan your marketing channels and advertising expenses. Work on the brand name, logo, and website. Determine whether you would like to sell online, offline, or both, and allocate a budget for each channel. Today, however, a successful business thrives on a robust online presence with the help of a website and social media promotions.


With a pre-defined income, you can better plan your expenses, prices and sales. Include in your business plan how much revenue your business should earn each quarter and annually.

Now you know what to include in a business plan, click here to download our free business plan template.

2. Incorporate

It is critical to establish a legal business entity to save yourself from personal liability if your business gets into legal trouble. You can choose to set up your business as a sole proprietorship, partnership, or limited company. 

If you are not sure which direction to go, turn to legal services such as  Incfile and Swyft Filings for the best way to start up. They also keep the records, help you with the annual reporting, payment of taxes, and other legal requirements you may need to get your business running.

Get licenses and permits

Depending on your state government, you may or may not need licenses and permits to operate your Handbag business. Terms and conditions and fees may vary depending on the location and type of incorporation. Remember, not getting these licenses can lead to legal issues.

Click here to learn more about your state licensing requirements.

3. Build a Website and Social Media Presence

As I said earlier, to run a successful business today, you need to invest in your website and social media promotions. Remember, a bag sells better through a visual medium. 

So, creating a website that resonates with your brand can make the handbags stand out. Add quality pictures and descriptions for your audience to enquire more about your bags.  Make sure the website is mobile-optimized. 

You can try these platforms to create a website and landing page for your handbag business.

Bigscoots Hosting: Provides you with custom WordPress hosting plans that will make it quick and easy to design your website.

Leadpages: It provides a landing page builder that can showcase your Handbag business in a top-of-the-line way.

Having a website is a must, but don’t miss out on social media promotions. The fashion industry has grown exponentially with the help of social media platforms like Instagram, Facebook, and Pinterest. 

If you are in the bag business, you shouldn’t ignore the potential of these channels. Use these platforms to get there to target customers and connect with them instantly. You can easily and quickly convert your leads to customers by using these platforms properly.

4. Map your Customer Journey

Another crucial step in running a business is to map your customer journey. Answer questions like:

  • How do your customers buy handbags? 
  • Do they search for the product online, or do they prefer a store visit? 
  • What are the best sellers and what is not liked by your customers? 

When you read your customers’ buying behavior, you get to know them better. With this data, you can design better handbags and reach your customers with the right sales pitch.

You can survey your existing customers to understand their expectations and analyze their online purchase behavior through tools like Google Analytics. I also encourage you to research other handbag sellers to understand the gaps in the buyer expectations and their offers. Once you have a clear idea of what your customers are looking for, you can meet their needs and establish a niche.

5. Get More People to Know About Your Business

You have to promote your offline and online store to reach more and more people. Network with handbag wholesalers and retailers in your area to map your prospective customers and communicate with them through effective advertising. I recommend the following to you:

  • Optimize your site with GoogleAdwords to rank high in the SERPs
  • Promote your handbag designs on social media. Create quality content on Facebook and Instagram
  • Attend fashion fairs
  • Ask your family and friends to promote your website and social media accounts
  • Connect with other fashion retailers to promote your handbags
  • Ask your customers to write feedback and recommendations

You can use your marketing budget to promote your bags through fashion bloggers and social media influencers. They have a strong follower base on social media. Find out which influencers resonate with your brand and leverage their public reach.

There are many more ways you can promote your business. Schedule a Free Consultation to understand how to make more people familiar with your business. Also, check out our Startup Entrepreneur’s Toolkit.

6. Sell Your Product or Service

It’s essential to choose the right sales channel for your business. Even though you make brick and mortar retail stores your primary sales channel, I encourage you to promote and sell your product online. Software such as ThriveCart E-commerce and Shopify E-Commerce provides a convenient platform for selling online. You can use them to set up an online store, upload pictures and descriptions of your cards, attract customers and make sales.

Make Money

These steps can help you start your business and achieve your income goals. It is not the end but the beginning. To grow in today’s highly competitive world, you need to keep improving your process to meet your business objectives. Here are some things to do consistently:

  • Evaluate and set goals and a plan
  • Promote your Handbags consistently
  • Maintain the legal and financial requirements of your local area
  • Improve the design and quality of your handbags by capturing customer feedback


Good planning and correct guidance can help you lay a strong foundation for your business. These tips can help you get your foot in the door. If you’re ready to start your handbag business from here, don’t miss out on our free consultation. Book here to speak with a marketing pro about the next steps. Quality mentorship can help you sail through the tough times as an entrepreneur.

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