Here’s How To Buy Jewelry Wholesale and Sell Retail (+ 6 Tips)

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To create a sustainable jewelry business, you need the right suppliers.

Some of your best options for jewelry suppliers are jewelry wholesalers, who tend to sell larger quantities of jewelry at relatively low prices. You can often negotiate prices with a wholesaler, allowing you to get a better deal than you would with other suppliers. You can then set higher prices at your retail jewelry store — creating a significant profit margin.

However, there are many wholesale jewelry suppliers to choose from, and determining which supplier or suppliers are the right pick for your store can feel overwhelming.

In this blog, we’ll explain how to buy jewelry wholesale and sell retail so you can increase profits at your jewelry store.

How To Buy Jewelry Wholesale and Sell Retail: 6 Tips

In the U.S., wholesalers must register with the federal government in order to sell wholesale products to retailers. Retailers then mark up these items to turn a profit, and sell individual items to customers. As simple as this process sounds, it takes insight and strategic thinking to find the right suppliers for your jewelry store, price and market jewelry items correctly, and turn a profit.

Let’s go step by step through the process.

Step #1: Find Your Jewelry Niche

Before you determine which suppliers you’ll work with, you need to determine what kind of jewelry store you want to run. There are a variety of niches you can fill.

Here are a few examples of types of jewelry you can specialize in:

Vintage
Custom-designed
Sustainable
Fine
Affordable

Understanding what kind of jewelry you want to sell — and the kinds of jewelry your target market wants to buy — helps you determine which wholesale suppliers to work with. While some offer a variety of products, others are more specialized.

Tip: Find a unique jewelry niche. What type of jewelry you choose to sell will depend on your preferences and the market you want to service. Do research to determine what competition exists near your jewelry store and what types of jewelry are being sold. Try to identify gaps in the market that your store can fill. The more different your jewelry store is from the competition, the easier it is to compete.

Step #2: Identify Trustworthy Jewelry Suppliers

Wholesalers come in all shapes and sizes. Once you’ve found one or a few suppliers who sell the types of jewelry you want for your store, you need to make sure you can rely on them. Before committing to working with a supplier, try to assess the trust they’ve earned in the industry. Are their products genuine and high-quality? Do they keep their promises?

Take a look at online reviews, references of other customers, and industry certifications to get an idea of how a wholesaler operates. You can also visit supplier facilities in person to check their materials and operations for yourself. Attending jewelry trade shows is a great opportunity to meet with suppliers in person and explore your options.

Build positive relationships with wholesale suppliers by keeping your word. Negotiate prices your business can afford and pay them on time. Try to find a supplier with open channels of communication, too, so you can ask questions (and get answers) when necessary.

Tip: Start with a small wholesale order to ensure quality. Though you may typically place large orders with wholesalers, it may be best to place a smaller order to start. If the quality isn’t quite where you thought it would be, it’ll be easier to move a smaller order of inventory so you can choose a different product or vendor in the future.

Step 3: Price Jewelry Strategically

Finding the right price for the jewelry you sell is key to running a profitable business. Jewelry bought from wholesalers and sold at retail can be marked up to double the retail price or more, depending on the item, the material, and other factors.

Remember to factor in your overhead expenses when you set your prices. These include shipping, cost of rent at your physical location, marketing, and any other business expenses. While you may be turning a profit on a single order, you need to keep your entire business in mind to keep it profitable.

Inventory costs fluctuate over time. Pay attention to these costs and adjust your prices accordingly.

Tip: Research competitors’ prices. Always be aware of what your competitors are charging for similar products. While different stores offer different types of jewelry and serve different markets, having prices that are much higher than those of similar stores makes it difficult to compete in the market.

Step 4: Present Your Products Accurately

Ensuring potential wholesale suppliers are accurately representing the items they’re selling is essential — in turn, you need to accurately represent these items to your customers. Study up on the details and specifications of the products you offer so you can answer customers’ questions. If you run an online store, post high-quality images and detailed descriptions that give customers a good idea of what they’re buying.

When it comes to authenticity, pay attention to the details. Be sure to accurately report materials, dimensions, prices, and other important product information. Regularly update your online store with new products and remove products you don’t sell anymore so these listings are always up to date.

Tip: Ask for certificates of quality from suppliers. Quality certificates signify that materials have been professionally endorsed and confirm their authenticity. These certificates reassure both you and your customers that the jewelry items they’re purchasing are genuine.

Step 5: Market Jewelry Effectively

Once you’ve obtained your wholesale jewelry items, it’s time to market them. To effectively market, you need to know what your jewelry niche is and who your target market is. Whether you’re selling fine, custom, or affordable jewelry, find a unique selling point (USP) that appeals to your target market — then, choose the right channels to communicate with them.

There are many channels to choose from to market your jewelry store, including social media, email campaigns, and collaborations with other organizations. Depending on your audience, you can also look into traditional forms of advertising like television, radio, and print advertising.

When you’re creating content to advertise your jewelry store, it helps to have something specific to advertise, like a new product or promotion. Be creative as you come up with advertisements to give customers an extra incentive to choose your store.

Tip: Feature jewelry experts in social media videos. Social media is a fertile ground for marketing, and your content will be more effective if it features professional jewelry experts. Whether this is you or you seek out a third party collaborator, a jewelry professional can be recorded discussing the features of a certain jewelry item to educate the public. This kind of content builds brand authority.

Step 6: Stay Up to Date With Jewelry Trends

Once you’ve created positive relationships with suppliers, found your target audience, and started making sales, it can be easy to get into the habit of selling all the same products. But in the jewelry industry, it’s important to stay current with trends and seek out new jewelry items to sell so you can maintain interest and effectively compete.

A great place to discover new trends and innovations is at industry trade shows. Here you can see new products for yourself and meet other jewelry professionals to hear their observations about which items are selling well. You can also ask for feedback from your customers about what kinds of jewelry items they’d like to buy and what you might add to your inventory.

Tip: Subscribe to jewelry publications and newsletters. Jewelry publications provide a steady stream of knowledge about the industry to keep you informed about new developments. Keep your eye on these sources so your store can keep up with your competitors.

Buying Wholesale Jewelry for Retail With Jewel360

In this blog, we’ve discussed how to buy jewelry wholesale and sell retail, a multi-step process that requires expertise and good judgement.

As you go through this process, you may make mistakes. You may choose a supplier that isn’t reliable, delivers low-quality products, and fails to meet deadlines. When you discover these issues, expand your search until you find suppliers you can trust.

Remember: Be authentic with how you present jewelry items, and market them effectively. Pay attention to trends in the industry so you can continually draw in a new audience. Following these steps and making course corrections as necessary will help you create brand loyalty and keep your business profitable.

To help with this, you need a solid point of sale (POS) system. POS systems give you access to jewelry suppliers, tools for e-commerce and marketing, and much more. To be even more effective, you need a POS system designed specifically for jewelry stores: Jewel360.

Jewel360 is an all-in-one system designed to help you manage your entire jewelry store from one spot. With jewelry-specific features like appraisals and work orders, you’ll have everything you need to run your store. Schedule a demo today!