Inventory is one of the most important considerations for any retail business — but especially for a jewelry store.
You rely on inventory turnover to generate profits for your jewelry store; sufficient inventory ensures that your store has the products customers are looking for, leading to increased sales and customer satisfaction.
You want a customer to come into your store with a picture of a ring they found online and say, “Do you have this?”
“Yes, I do. Follow me to this case over here.”
Effective jewelry inventory management helps optimize profit margins by minimizing losses due to unsold or outdated items. It also improves cash flow by reducing excessive inventory investments and allowing your financial resources to be spent on other parts of your business.
But, first things first: How do jewelry stores source their products? In this blog, we’ll explore how jewelry stores get their inventory.
How Do Jewelry Stores Get Their Inventory? Purchase vs. Consignment
There are primarily two ways jewelry stores get and pay for their inventory:
- Purchase
- Consignment
The first way is to buy it, and the other way is to hold the product on consignment — or on memo.
Consignment
In the jewelry industry, a memo transaction, often referred to as consignment, involves a jewelry store holding a supplier's product for a predetermined time while the store markets and sells the supplier's product. Your jewelry store only pays the supplier for the product when a sale occurs. Otherwise, the product is returned to the supplier at the end of the specified period.
This arrangement allows you to showcase various products without the financial commitment of a direct purchase, providing flexibility in inventory management. The disadvantage is that merchandise acquired this way may come at a higher cost than goods purchased directly.
Purchase
There are jewelry stores that have all of their inventory on consignment, jewelry stores that own 100% of their inventory, and every combination in between.
No matter how your business sources its inventory, there are several different suppliers of jewelry inventory from designers to wholesalers. Your jewelry store should choose a mix of suppliers to diversify your selection and ensure a consistent supply of products.
Where Do Jewelry Stores Get Their Inventory?
Let’s take a look at where you can get inventory for your jewelry store.
1. Trade Shows
One of the first sources new jewelers go to for inventory is jewelry trade shows. Jewelry stores can get inventory from trade shows by connecting with manufacturers, wholesalers, and distributors showcasing their latest collections. These events provide a platform for buyers to discover new products, evaluate trends, and negotiate prices directly with suppliers.
Attending trade shows allows jewelry stores to stay up to date with the latest designs, identify potential business partners, and secure exclusive merchandise that may not be available to the public. Trade shows also offer opportunities for networking and building relationships with industry professionals, which can be valuable for future sourcing and collaboration.
2. Manufacturers
Many manufacturers have sales representatives who visit stores and showcase their latest collections. However, jewelry stores can also find manufacturers at trade shows and events where manufacturers exhibit their products and accept orders.
Some manufacturers operate online portals or e-commerce platforms where you can browse and purchase inventory directly. Establishing relationships with reliable manufacturers is crucial, as it ensures consistent supply, competitive pricing, and access to the latest designs.
Related Read: Networking and Collaborations: The Power of Partnerships in the Jewelry Industry
3. Designers
Jewelry stores can also get inventory directly from jewelry designers. Traditionally, stores would purchase finished products directly from designers at trade shows or through sales representatives. However, e-commerce platforms enable many jewelry designers to sell their products online, making them accessible to a wider range of retailers.
You may choose to partner with designers to create exclusive collections or collaborate on limited-edition pieces.
4. Wholesalers
Wholesalers are businesses that purchase large quantities of jewelry from manufacturers and then resell it to retailers at a markup. Dealing with wholesalers has several advantages. First, wholesalers often offer lower prices than manufacturers, as they buy in bulk and pass on the savings to retailers. Second, wholesalers typically have a wide variety of jewelry to choose from, making it easier for retailers to find the pieces they need. Finally, wholesalers can provide valuable support services, such as delivery and marketing assistance.
5. Buyer Groups
Buyer groups are organizations that pool the buying power of multiple retailers to negotiate better prices from manufacturers. This can be a cost-effective way for jewelry stores to purchase inventory, especially for large quantities of specific items. Buyer groups typically charge a membership fee, but the savings on inventory costs can often outweigh the cost of membership.
6. Integrated Jewelry Inventory Management
Your jewelry store can also leverage an integrated point of sale (POS) system to optimize inventory management and get inventory. These systems provide real-time inventory tracking, allowing stores to monitor stock levels, identify fast-moving items, and generate accurate purchase orders.
Integrated POS systems can be linked to suppliers' inventory systems, enabling seamless reordering. Additionally, POS systems can generate reports that provide insights into sales trends, customer preferences, and inventory turnover, which helps jewelry stores make informed decisions about inventory ordering and performance.
By utilizing integrated POS systems, jewelry stores can streamline inventory management processes, reduce manual errors, and ensure they have the right products in stock to meet customer demand.
7. In-House Custom Work
In addition to getting inventory from external sources, you can also create custom pieces in your in-house workshop. You’ll be able to offer unique, personalized items that are tailored to the specific tastes and preferences of your customers.
Jewelry stores that offer in-house custom work can cater to a wide range of customer requests, from simple repairs to intricate designs, providing a competitive advantage and enhancing customer satisfaction.
How To Get Inventory for Your Jewelry Store: The Easy Way
No matter how you get inventory for your jewelry store, it’s important to be able to see what you have in stock and manage your inventory levels. An effective jewelry inventory tracking system streamlines inventory levels, manages custom work, and monitors product availability online and in store.
If you’re struggling to manage your jewelry store inventory, Jewel360 has a solution for you. Jewel360 connects jewelers to thousands of suppliers’ products with integrated catalog data and product images.
Jewel360’s built-in inventory management features deliver a POS system made for retail jewelers that streamlines your jewelry store operations, connects you to suppliers, boosts profits, and keeps your customers happy.
Request a live demo today to see how we can help you manage your inventory!