In a report by Statista, at least 29 million people buy jewelry (fine jewelry) every day? Can you imagine how much you’d make in the jewelry business if you tapped into a small percentage of this audience?
There’s also the fact that if done right, investing in the jewelry business could yield good profit margins of between 25 and 75%. Imagine that!
So, if you have been on the fence about starting a jewelry business, it’s time to stop doubting yourself. Put in that little money, you have set aside as capital and get started. As you can tell from your mentors and the tens of business success stories you’ve read online, it always takes one step – overcoming your doubt and fear.
Today, however, we’d like to step things up for you and help you take that step of faith in the jewelry business. Overcome your fear and have faith in yourself.
In this article, we acknowledge that starting and running an online jewelry business successfully is not an easy thing to do. But nothing is. Besides, out of all the other niches, you could try your hands on, selling jewelry is an excellent niche since people will always wear jewelry and buy from you, especially if you understand your market’s unique needs.
It’s also worth mentioning that unlike other niches like electronics, the jewelry business has great potential since most of the time, customers have no way of determining the how you came up with the price tag on your pieces, and even if they estimate the cost of the stone on that piece, they will not account for the value of the jewelry, not exactly. All that matters is for you to look for pieces that your customers will find pretty, and good value for their money. And this is where your opportunity lies – find (or design) unique pieces of jewelry that your online audience will find worthy of your money.
Sounds like an interesting and rewarding online business venture, no?
Keep reading to find out exactly how you can create and run a successful online jewelry business.
But first, a look at the benefits/ advantages of starting an online jewelry business
Why Online Jewelry Business?
- Easy and cheap shipping– when it comes to shipping jewelry, you are not dealing with bulky stock orders. Jewelry is lightweight, and your package will not cost much in shipping. Also, there’s a very slim chance of your jewelry pieces breaking during shipping. Therefore, you won’t spend much on shipping or packaging.
- The diversity in insane– the other reason why we’d recommend online jewelry business to anyone looking for online business ideas is that there is a very large variety database for you to choose from. Jewelry comes in different shapes, designs, and materials. You can sell cubic zirconia studded sterling silver or diamond-studded jewelry, and you will always find someone to buy, as long as you maintain high-quality standards. And besides the classic, you can also sell plated jewelry, custom jewelry, tungsten, titanium, or stainless steel jewelry, and people will buy. Besides materials, can we talk about how you can be the one-stop-store for earrings, necklaces, bracelets, rings, anklets, etc. and no one will judge you? How about sets and styling opts? Simply put, in the jewelry world, your options are only limited by your imagination.
- Endless Customization Opportunities– you could be thinking that the online jewelry business is not for you because everyone else is doing it, but have you thought of all the customization options you could tap into. How could you turn a boring ring into a masterpiece that sells above and beyond your expectations? With an open mind, the jewelry business could be your best and biggest money-maker. People are always looking for something different, but they don’t really know what they mean by different until you present the difference to them.
- Multiple sourcing options– The other reason why you should take a venture in online jewelry business seriously is that you will never miss a sourcing option. You can source your pieces from anywhere in the world. All you need is an understanding of the logistical and sourcing processes.
Now that you know all the advantages and benefits that you could enjoy from running an online jewelry business let’s look at how you could get started.
Getting Started on The Right Foot
By the end of 2018, the jewelry business was worth over $11Billion with the online share of the online jewelry and accessories market expected to grow by 11% by 2021. At the same time, global online sales from jewelry businesses are expected to reach about $340 Billion by the year 2023 and $645 billion by the year 2035.
Looking at these numbers, it’s clear that now is the best time for you to take a step into the online jewelry business.
How do you get started?
The most important step you will take as you prepare to launch your online business is to run comprehensive research into the current market.
For the right data, evaluate the performance and trends followed by the top performers in the online jewelry business. Research gives you an idea of what you should or shouldn’t do.
And by research, we mean that you need to look at things the websites for eCommerce first. For starters, the top-rated online jewelry businesses have user-friendly website designs which are also responsive and very mobile-friendly. The sites also have seamless cart functionality, management systems for their promotional campaigns, mobile optimization, as well as high-quality marketing and product content.
Also, the sales funnels are well-optimized allowing web users to navigate their sites seamlessly – say from the landing pages to the homepage, product page, and checkout pages.
You will also notice that the leading online jewelry vendors focus on their landing pages, also called the gateway marketing content, which focuses on their current promotions, seasonal collections, as well as new products. Their web pages also offer detailed product details in terms of concise product information, product specification, and reviews.
The branding features for these online stores are also important, and you can see that they are a result of hard work.
At the end of the day, your decision to run an online jewelry business should be guided by all these elements. Yes, it’s a lot. But once you have these things in place, everything will run smoothly.
- What Jewelry Will You Sell?
Part of your research involves identifying the kind of jewelry you will sell.
Will you sell fine jewelry, handmade, vintage, or costume jewelry?
Fine jewelry is the jewelry made using precious stones (sapphires and diamonds) and high-quality metals. These pieces have been created with a superior level of craftsmanship, meaning that every piece places emphasis on the quality of the materials and craftsmanship. Though the materials or bulk pieces are not cheap, these pieces promise higher returns.
Costume jewelry is the other jewelry category you could venture into. Costume jewelry lays emphasis on trendy, fun, and often mass-produced jewelry pieces that are made from cheap materials. Investment in this kind of jewelry is easy, and it doesn’t require much in initial capital. If you target the right market, these affordable pieces will return good profits.
Vintage jewelry or estate jewelry could also be a great start for you with these pieces gaining popularity in the jewelry world. Vintage jewelry sells best around people with a keen eye for detail and people known to scour estate sales and flea markets. So, you must also have a keen eye for details.
Handmade Jewelry is your ideal option if you prefer designing unique pieces that show your unique artistic style. These pieces often involve the use of unique materials and semi-precious stones. If you target the right market, handmade jewelry could be a great venture too.
- Identify your Niche
Knowing that you want to sell fine, handmade, costume, or vintage jewelry is not enough. You must know who you are selling too. Factors like age, culture, and geography will, therefore, be important considerations for you. So, if you choose to focus on traditional styles of jewelry, you will need a deep understanding of their motifs and the associated traditions. And if you go for custom jewelry, be ready to watch and match the current, new, and future trends.
Now that you have the basics covered, it’s time to curate a brand idea. Brand development might take time, especially since we don’t all wake up with dreams of what our brands will look like. Sometimes, it takes days other times; it takes weeks of brainstorming. And the process can be overwhelming, but you shouldn’t rush it. You will know when you have the right brand name, color, logo, image, etc.
Keep your brand attractive and sale-sy.
- Work on Your E-Commerce’s site Functionality
After researching, you should start working on your website; knowing what you need is not enough. You need to implement those requirements.
For site functionality, you are looking at the user-friendliness of your site, its mobile optimization, SEO functionality, customizable URLs, social media integration, and promotional campaign management. You should also consider your up-sell and cross-sell capability, security functions, shipping options, advanced payment systems, as well as FAQ and return policy terms.
Now that you have the branding, niche, and product category covered, it’s time to look up and ask about the best places to source great jewelry from.
Remember that this process is always easier when you first figure out the niche you will be targeting. So, if you are focusing on fine jewelry, tungsten rings, or stainless steel rings and necklaces, you will be looking for the best places to find these items.
Now, you have your sourcing options: you could either buy your pieces in wholesale or you could do dropshipping.
Wholesale sourcing involves buying jewelry pieces in bulk, storing, and dispatching them depending on your orders. Wholesale sourcing is faster and cheaper, you get control over the quality, and the storage costs are low. On the flip side, you’ll be forced to hold on to large volumes of inventory, and the process might be costly. Also, you have to take care of shipping logistics and packaging.
Dropshipping, on the other hand, involves partnering with a dropshipping supplier who will handle the packaging, storage, and shipping, while you run the website, handle customers, and market. In the long run, dropshipping is cheaper, you don’t have to worry about shipping/ packaging, and you don’t need storage space. The downsides of Dropshipping include lack of control over shipping, you don’t get to verify the products you are selling, and handling customer service and complaints is harder since you don’t have any control over the returns and shipping processes, or even the state of the product.
Comparing these two sourcing options, we’d recommend wholesale sourcing for starters. You can save money thanks to wholesale discounts offered by top wholesalers on the market today.
- Vetting Suppliers
Don’t place an order before you vet the suppliers.
In the vetting process:
- Ensure that the quality of the marketed products match your expectations (picture should look like the real thing).
- Confirm access to a reliable and honest contact/ point person who you can check in with in case of delivery problems or problems with the product specifications.
- Also, make sure that you are working with a reputable supplier who is not only compliant but also financially healthy. Gathering such details requires expansive research, asking hard questions, requesting documents for verifications, talking to other buyers, and checking their sites for information. Also, make sure to hold one or more phone and Skype conversations. You can tell more about a supplier by how they answer your questions when you contact them.
Don’t forget to ask for samples.
- Upload All the Relevant Product Information
You now have a supplier, and you might have some pieces in your garage, it’s time to sell.
Ensure that you have the essentials mentioned above. But in addition to those, check the setup of your online store to make sure that the customer journey is streamlined. You could learn from sites like Shopify, although most online stores have more of the same designs.
You want to make sure that your customers can see your products clearly, as well as their prices and the descriptions, as well as any other important product information necessary. Stick to a theme.
- Consider Your Overhead Costs
The initial stock or materials cost could quickly add up and exceed your initial budget. So, factor in all the costs needed to set up your online business and factor in the hours you will need. If you need someone to run the website, factor in these costs too.
In the months that follow, track all your expenses and product price fluctuations, to figure out your total average overhead costs and also the minimum retail prices for your pieces.
Adding all the expenses helps you in calculating the profitability of your business, and you will also know how and when to tweak things.
- Promote Your Brand
You’ve done everything necessary to have your jewelry pieces live on your website; now it’s time to promote the jewelry and your brand.
You need to be creative, just as much as you need a strong social media presence. Social media allows you to reach multitudes easily. So, set up Instagram and Facebook pages that match your brand and start selling.
So, post your jewelry as much as possible and tell your friends about your page for them to share your page/ products.
- Promote your products on social media and run ad campaigns on Instagram and Facebook.
- Always take great photos of the jewelry on and also off people
- Start an email list and integrate it with rewards and coupons
- Wear your jewelry proudly,
- You could also tap into Amazon, eBay, or Etsy to sell your jewelry.
Finally, listen and be ready to adapt as your online jewelry sales increase. Remember to always invest in your online jewelry business.