Selling jewelry requires a high level of skill and a great deal of financial capital to purchase materials in bulk. Jewelry designers who make their own designs can start small, selling their creations at craft fairs and locally owned boutiques before moving on to larger retail chains or online sales platforms. When a designer does choose to sell through these channels, it is important to understand how these marketplaces handle fees, payment methods and shipping processes, as these will have an impact on the overall profitability of a sale.
A successful jewelry business starts with a solid plan, which includes an outline of how you will acquire customers and sell to them. You may decide to market your jewelry through a local magazine, newspaper, or website, or you might attend a trade show to connect with wholesale buyers and retailers. You will also need to determine if you want to produce your jewelry yourself or outsource the production process to a manufacturer.
Jewelry is a highly coveted commodity, and that means it has a high resale value. Jewelry stores often offer trade-in options where customers can bring in their old or unwanted jewelry for store credit. This gives people an incentive to spend money in your store, and it is a good way to rid your inventory of items that have lost their appeal or no longer meet customer expectations.
The quality of a piece of jewelry has a big impact on its resale value as well. If a diamond ring is covered in scratches, or if it has structural damage, it will not sell for the same price as a clean, unmarked piece. This is one of the reasons that it’s crucial for jewelry businesses to provide a thorough cleaning and inspection before a piece of jewelry leaves the store.
As with any industry, there are risks associated with the jewelry trade. Macro risk, such as political instability in regions where gemstones are mined, can have an effect on global demand and thus affect the price of a particular piece of jewelry. Micro risk, such as fake or misleading advertising, can lead to a loss in revenue and reputation for a jewelry business. This could include listing a plated piece of jewelry as gold or failing to disclose a metal that is known to cause an allergic reaction in some people.
If you are a new jewelry designer, it can be beneficial to work with a wholesale distributor who can help you source materials and manage the manufacturing process. These professionals will often negotiate discounted prices with manufacturers, which can save you a significant amount of money in the long run. Wholesalers can also help you develop a brand image and increase your sales potential by connecting you with influencers and other potential customers.
Another option for a new jewelry designer is to sell their pieces on consignment. This arrangement, also referred to as memo or on-memo, involves your jewelry store holding a supplier’s product for a set period of time while it is marketed and sold. This allows you to showcase a wide variety of products without the upfront investment, and it gives you more flexibility in your inventory management.
