After the immense growth of the adult industry, another segment called the sex toys industry is taking the market by storm. The global sex toy market was valued at USD 32.7 billion in 2022.
Furthermore, the usage of sex toys is on the rise worldwide, and it is expected to increase at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2031.
Now, you may also be wondering how to sell sex toys, and this blog will give you an idea of the types of sex toys business models you can adopt to sell adult toys.
What is a Sex Toy Business Model?
A sex toy business model is a blueprint of how a sex toy business should operate to reach its target audience and generate revenue. Selecting a proper business model is crucial to making your business successful.
Understanding the involvement of legal, logistical, and market requirements can be a game-changer for any business. Incorporating a strategy to deal with all the factors involved is nothing but your unique business model.
It would be a good idea on your behalf if you also understand the finances involved with the sex toys business and know how much it really costs to start a sex toys business.
10 Types of Sex Toys Business Models
1. Brick-and-Mortar Stores Model
It is the most conventional way of selling a product. A physical sex toy shop that sells sex toys can be your business model choice if you want to sell your products the conventional way and give a more personalized shopping experience to your customers.
2. E-commerce Fulfillment Model
E-commerce is the trending way to sell your products. A retailer who has an online sex toy store and a proper website that allows visitors to go through a wide range of your sex toys collection present in the store.
Every product should be described in detail on your website, along with any kind of regulatory certification or license required as per the location or law of the land.
Remember that only high-quality products can lead to the successful establishment of your adult e-commerce site. The buyers should be able to rate the products they purchased on your website. Good ratings and reviews can help build trust among potential customers and help close a sale.
3. Dropshipping Model
This is the business model that can be adopted by those who don’t want to invest in the inventory of sex toys. You, as a dropshipper, can approach an unlimited number of sex toy manufacturers to help them sell their products under your name.
Basically, you will host a website selling sex toys and put the products of different manufacturers on your website.
If someone purchases any product on your website, the delivery details of the product will be transferred to the manufacturers, who will send the ordered product to the customer. After successful payment for the delivery, you get a commission out of it.
4. Subscription-Based Model
This model requires you to sell your product on a subscription basis. As a sex toy service provider, you can ask your customers to take monthly subscriptions to your sex toys and surprise them with new curated and personalized toys every month.
This kind of business model is new and can be very fruitful because of the surprise factor involved.
For this model to succeed, you should have every information about your customer’s sexual likings and preferences. You can also make your customers fill out a form each month on what new they want to try for their sexual pleasure.
5. Personalized Product Model
In this model, your business is responsible for manufacturing personalized sex toys on your customer’s demand. This type of model can help you get B2B orders, plus orders from professionals or people who are very passionate about sex toys.
You can charge an advance fee from your customers, which must cover the cost of your product development, and the rest of the profit part can be collected after the personalized product is delivered.
You should follow this business model if you are very passionate about customer needs and the research and development of sex toys.
6. Sex Toy Manufacturer Model
As a sex toy manufacturer, your initial investment is in the design and development of your products. Once you grasp the standard market design requirements, you can scale up production to create sex toys in large quantities.
You can contact both online and physical stores to inform them about your production and follow the B2B model. In most cases, you will get bulk orders from sex toy businesses all around.
7. Affiliate Marketing Model
In this business model, you work as an affiliate marketer for sex toy businesses and earn commission-based money. This type of business model can be adopted by individuals who want to earn an extra income from sex toy companies. You can do it full-time or part-time based on your interest.
With the help of this model, you can be a part of the growing sex toy industry without really investing any money. All you need is a good affiliate marketing strategy and a valid affiliate link.
8. Sex Health Education Model
Sex education model focuses on the sexual well-being of an individual. If you adopt this business model, your primary focus should be on providing the proper education and counseling to your customers. Here, you primarily charge fees for education and counseling.
If your present customers feel that the counseling and knowledge they are receiving is helping them improve their sexual life, then they will surely try the sex toys you recommend to them, and thus, this can lead to a sale of your sex toys product.
You can buy an inventory from a manufacturer or wholesale retailer and later sell it to your customers.
9. Technology Incorporated Model
This is the modern-day business model that Generation Z age groups most like. You have to be a technology enthusiast to keep up with emerging technologies in the market.
Currently, there are technologies like app-enabled sex toys and Bluetooth-integrated toys that help couples who are in a long-distance relationship spend some romantic time with their partner.
The latest VR-AR technology has entered the sex toy industry and is being used by many. AR-VR can help your customers who like to use tech-assembled toys get a good user experience in terms of sexual pleasure.
10. LGBTIQA+ Niche Model
It is a niche business model that is specifically for a group of people with particular sexual preferences and orientations. This type of model distinguishes your business from others. Focusing on a particular group of people makes it easier for them to notice you.
To start a model like this, you need to do proper research on the sexual preferences of the specific group and sell products to meet their unique sexual needs.
We are now at the end of the article, and I expect that by now, you will have an idea of the different types of business models you can choose from to start a sex toy business.
Out of all business models, the one model that easily allows you to start your journey in the sex toys industry and has the potential to make you rich is the dropshipping model.
However, the dropshipping model has some disadvantages, such as you can’t sell your own product or establish your own brand. But in xMarketplace by Adent.io, you can sell your own products, which can be the solution to this problem.
xMarketplace is an adult ready-to-use ecommerce script that can help you sell adult toys and help in the establishment of an online adult sex toy store without any inventory.
It also comes integrated with international dropshipping APIs that give you instant access to 20,000+ products with discreet shipping.
FAQs Related to the Sex Toys Business Models
1. Which sex toy business models should I choose?
Selecting a business model for your sex toy business depends on many factors, like your target audience, the initial investment you can make, your preferred niche, your targeted location, etc.; all these factors decide which business model will be fruitful for your business.
2. Which sex toy business model needs the least investment?
The dropshipping business model can be your choice if you want to start your online sex toy business with low investment. This model allows you to start your venture without any inventory and without really investing much. You can earn in the form of commission from the retailers.
3. What is the most profitable business model in the sex toy industry?
The most profitable business model for you in the sex toy industry depends on the amount of investment you want to put in. To consider a business to be profitable, you need to generate more money from the business than what you invest.
All the sex toy business models can potentially make you some profit corresponding to your investment. But, the size of profit you want depends on your business’s scale, size, or reach.