How I set up an online business selling farm toys

A background in educational farms and website design proved the perfect combination for Julia Lowe when she set up Farm Toys Online in 2008.  Despite launching in a recession, the business is thriving, as business writer Rachel Miller discovers

It’s hardly surprising that Julia Lowe hit upon the idea of selling farm toys online. Her parents run educational farms for kids and she herself managed one for a while. She has also run a web design business. “With Farm Toys Online I have been able to put into practice what I have been preaching,” she says.

She’s certainly doing something right. The business launched in March 2008, as recession was looming. The idea was to source products that were more realistic then most farm toys but not as complex and pricey as the exact replica models on the market. The range includes everything from puzzles, toys and lunch boxes to ride-on tractors.

“If you start in a recession, things can only go up really,” says Julia. “Business went well in our first year and we’ve doubled our turnover in our second year, so it’s fantastic.”

A focus on quality

There are a few key reasons for that success, not least the quality of the products themselves. “When times are hard, one of the last things to go is presents for children,” says Julia. “But it’s also about selling things that are well-made and that will last. When someone is buying over the Internet, there’s nothing more disappointing than getting a really nasty plastic toy.”

The Christmas season is a crucial time for Farm Toys Online. “Last year we did 65 per cent of our turnover in the six weeks leading up to Christmas,” Julia reveals. “This year, the sales started picking up in October half term. But the busiest time for orders is early December when people have had their November pay and have already spent time browsing.”

Anticipating demand and ordering the right stock is vital. “We have lots of different suppliers, mainly in the UK, and we hold most of the stock ourselves, apart from the big ride-on tractors,” explains Julia. “We work closely with our suppliers and our experience from last year has helped us to predict what the biggest sellers will be. There’s a lot of flexibility and we can react to demand quickly. What’s going really well are our wooden farms. Other popular items include model horses. And ride-on tractors are popular all year round.”

Halving acquisition costs through online advertising

The main marketing focus is online — search engine optimisation (SEO) and Google AdWords. “We don’t do any conventional advertising. We do a lot of PR though and we’re in the Telegraph Christmas supplement this year,” says Julia. “We use a specialist firm to manage SEO and AdWords. When we took them on, they were so successful that I was able to halve the spend per new customer acquisition. So it is well worth it.”

Customer service is very much at the heart of the enterprise and it’s driving new business through positive word of mouth recommendation. “We offer a really good customer service and keep in touch with our customers. People can actually ring us up and ask us about the products. We’re finding that our customers are very happy.”