BloomNation, dubbed ‘the Etsy for florists,’ is an online platform that modernizes the way independent florists operate their businesses. By allowing these small businesses to keep 90% of a sale, it has transformed how customers select floral arrangements. Since its inception in 2011, BloomNation has expanded to include a network of 3,500 florists across the United States and Canada, boasting an impressive average annual growth rate of 25%.
The idea for BloomNation emerged when co-founder Farbod Shoraka noticed diminishing foot traffic in brick-and-mortar florists. With consumers increasingly turning to online platforms for purchases, independent florists faced challenges from large brokers like FTD and 1-800-Flowers. These entities commanded commissions that severely reduced the revenue for local florists. With a background in finance, Shoraka sought to create a solution that empowered florists to sell directly to customers without intermediaries.
BloomNation's innovative business model not only facilitates direct sales but also provides florists with tools for managing their entire business operations. In addition, it launched a B2B arm that helps florists enhance their e-commerce capabilities, significantly boosting their sales by 30% to 40%. The company's performance-based revenue model also incentivizes florists by ensuring they retain a large percentage of sales revenues.
BloomNation remains committed to community impact by requiring its florists to be local and to provide hand-delivery of their arrangements. By keeping the emphasis local, the company highlights the multiplier effect of small business spending, where money spent within the community circulates and revitalizes local economies.
Recently, BloomNation expanded its reach by acquiring UK-based Floom, enhancing its service offerings and aligning with its mission to support florists with comprehensive tools and technology. Shoraka emphasizes the importance of unit economics for startups, inviting them to analyze profitability effectively.
Through its efforts, BloomNation exemplifies how innovative business models can successfully support small businesses in adapting to the digital landscape while promoting creative freedom and local economic strength.