Welcome to the first part of our series for tips on how to sell jewelry online. This series will cover various reason you are intrigued by this business. We will help to determine who your target buyer or consumer will be, in addition to the type of jewelry you want to sell. We will also breakdown the overhead costs of owning your jewelry business online.
The market for online jewelry is a billion-dollar industry. Selling jewelry online is appealing to the majority of the population, as you will find out in this series. Let us help you enjoy some of that profit by saving yourself time with our expert guide series.
Your Reason to Sell Jewelry Online
When deciding to take the leap into the ecommerce world, you will need to ask yourself a few questions. The most important question being, “Why do I want to sell jewelry online?” There could be several answers to this question. One being you may been making jewelry as a hobby, maybe even selling to a few friends and now you want to take it to the next level.
Another question to ask yourself is, “Do I want this online business to be my “full time” income or will it be more of a side hustle or hobby. Once you have determined how big or small your business will be, you can get started.
Regardless of your answers this series will make you feel confident and enable you to build a successful business presence online.
If you’re going to sell jewelry online, you need to understand your target buyer. This product, jewelry, appeals to a variety of cultures, ages and genders worldwide. Determining who you intend your target buyer or consumer to be will help decide on what your niche will be. A niche is a position or theme of an interest, topic or product that you feel comfortable with. In this particular case it would selling jewelry online. Once your niche is established it will make the fundamentals of this business seem less overwhelming.
Men enjoy shopping online as much as women these days. They have an idea of what they want when they go online and they make it happen. Business Insider or BI Intelligence reports that “When it comes to ecommerce, men drive nearly as much overall spending online in the US as women.”
- Men seem to want more of a straightforward shopping experience that is simple.
- They are more likely to want to spend money on themselves instead of others.
- They seem to be less interested in sales and deals. If they need or want the item/items they will purchase it.
- Research the products and read the reviews before purchasing.
- A very detailed description is another thing that men tend to look for when shopping online.
The majority of women like to shop, especially online. It is more convenient and it uses less of their time, being that you can shop from anywhere online. This convenience of shopping from a phone, tablet, laptop or any device makes shopping for jewelry online more appealing.
- Women are more selective when purchasing online.
- They like online chat features and customer service is a top priority.
- Reading customer reviews is also very important. They want to know what others think of their purchase. Women also like to share their opinion, if they were happy with their purchase they want others to know this.
- Marketing seasonal deals, coupons and discounts are more likely to grab their attention.
- They buy gifts for themselves but for others too.
- High quality visuals are also an enticing selling point.
All of the buyers fall into this category. Most men, women, teenagers and young adults at some point want to purchase the latest style of jewelry and keep up with the newest fashion trends. Especially when selling accessories such as jewelry, it is important to know what is trending and what is “hot” right now. Being on top of your game will give you the boost you need to sell jewelry online. There are several ways to keep up with the ever changing fashion industry.
- Follow jewelry blogs and websites.
- Network with others that have a similar interest.
- Join groups of like-minded people. This could be on social media or locally.
- Research. This could be reading the latest magazine or checking out fashion news sites.
- Get your customers feedback. What do they want to see in your store? What are their preferences? This can be done through a quick survey when they visit your online store or sent in an email.
Is your jewelry targeted to a specific culture? Do you make jewelry that looks like or aligns with the cultures from Asia, India, and Africa or does it have more of a European or Native American feel? You know your product and what audience it would resonate the most too.
These are all things to consider and depending on the type of jewelry you make or will want to sell will narrow in on your targeted buyer. Demographics such as income, age and lifestyle are all important factors to consider for your targeted customers.
Type of Jewelry
Everyone has their own style and type of jewelry they like. Deciding on what type of accessories you will sell gets you closer to narrowing down your demographic customer. The three top types of jewelry that most consumers know about are handmade, fashion and exclusive.
- Handmade Jewelry This is jewelry that was made by hand and is your own personal design. Making this jewelry is what a lot of customers like because it has your own personal touch. When purchasing handmade jewelry you are sure to get a one of a kind, unique piece. Even if you were to replicate the same piece it would not look the exact same due to the high skill level it took to make. This is because you are not using a machine to produce your product, it is made by hand every time.
- Fashion Jewelry
This type of jewelry is a little less expensive because it is mainly bought on an impulse to match an outfit or for a one time occasion. This jewelry is mostly made from stones such as crystals and alloys that contain precious metals.
Exclusive jewelry means that you only sell a certain type of jewelry. It lets people know what you sell and this could mean you only sell rings, necklaces, earrings. An example of custom jewelry would be that you sell only bridal pieces of jewelry.
Once the type of jewelry that you will be selling is established, it is another step to selling jewelry online and getting your business started.
Overhead Costs of How to Sell Jewelry Online
There is no clear cut answer to the exact cost of setting up your online business. Many different opinions exist on this subject and it is based on an individual as to what they prefer. A proven fact is that the setup costs are very minimal when owning a jewelry store online as opposed to having a physical store. A physical store would have rent, utilities and staffing costs right up front. This is not the case for an online store. As your business grows and starts to make money you can invest more into your business. There will be certain costs that need to be taken into consideration when selling jewelry online. Some of these costs would be a one-time cost, others a monthly or annual cost. It is important to break down these costs by doing research and being prepared.
The most obvious cost that is usually overlooked is the time and effort that will need to be put into the business. Being able to run the business once it is set up and to maintain it is the difference in being successful or not. Before starting to sell jewelry online, it is important to factor in the time that your business will require. This brings up another question, will you work alone or will you hire friends and family to help you maintain your jewelry store? If you are working alone it is very simple because your time is what you need and that does not cost a thing. If you plan on hiring others to help you with the other details this is a cost that will need to be considered.
The first cost to look at is your materials. Taking inventory of your materials is something you will need to do consistently. Knowing how much goes into each piece of jewelry will help to determine a price point when listing your items. When thinking about this cost you will want to ask yourself a few questions. Do you have a regular supplier of the materials you need to make your product? If so, will you need to buy any of the materials in bulk? How much will this cost? Since you probably have already been making your jewelry these questions should be rather simple to answer. If you have not previously been making jewelry then you can look into different sites and research the best places to buy your materials. Before starting to sell jewelry online you will need to have a supply of jewelry prepared to sell. Having this supply will allow you to spend your time elsewhere and you will already have the product on hand to sell.
The next cost to look at is how much it will cost to have your own store online. When starting up your own store there is some cost involved. Some of this cost is a one-time fee but things such as the maintenance and security can be a monthly cost. Annual costs of selling jewelry online would include the web hosting fees and any type of upgrades. Although these are not high costs they will still need to be figured into your budget. Later in this series we will cover more on the cost and benefits of having your own online jewelry store.
Another cost to consider would be how you will get paid. Is there a certain way you prefer to get paid or will you a few choices for your buyers? There are several options out there and researching which one is right for you is essential. Some business owners accept all credit cards, PayPal, etc. Also, checking with your bank to make sure they do not charge a fee for transactions is key to saving on costs. Having this function in place and knowing that it is not going to cost you a lot of money is very reassuring. You do not want to put in all of this hard work just to be losing a lot of money in fees to a payment provider.
Finally, you will want to budget for the shipping costs of your product. Most jewelry does not weigh very much which will help with the shipping costs but there are other aspects to look into such as packing materials. This product is delicate and will need to be properly packaged when being sold to customers. Something else to consider is will you offer free shipping. Free shipping when selling jewelry online is a great incentive for buyers but the product price will need to increase to absorb this. Some stores do this as a marketing tactic so the customer feels like they are getting a much better deal. If you are selling in the United States will you only ship to just the 48 states or to all 50 states. Have you considered shipping internationally and what will the overhead of doing this cost you?
Preparing is the key element to saving money not just at the start of your online business but all of the time from the overhead costs right down to the maintenance of your business. Being prepared is very helpful to sell jewelry online, because when running a business you will run into unexpected issues. When these issues arise having this cushion will help things to run smoothly and help your business not get off track. This is a business and you want to make a profit not as the saying goes “come up on the short end of the stick”. If managed properly and operated according to the plan that has been set in place selling jewelry in an online store can be a tremendously profitable business.
In the next installment of our “How to Sell Jewelry Online” series, we will be looking at creating a marketing plan for your business, ways to make your business stand out online and marketing tips on how to execute this plan.