How To Offer Jewelry Financing at Your SMB: 5 Tips

Jewelry financing options have become increasingly popular in recent years. The retail segment of the “buy now pay later” market secured 74% of the share. Retailers offering financing options have seen increased customer conversion rates, as this approach allows customers to purchase high-value items like jewelry through manageable payments. This makes these items more affordable for those without the funds upfront.

Offering financing doesn't just make high-end jewelry more accessible for your customers; it opens the door to increased sales and customer loyalty. But how do you get started with jewelry financing? What should you consider to ensure it's beneficial for both you and your customers?

We'll review five tips for offering jewelry financing at your small jewelry business, from understanding the basics to choosing the right financing partner.

Let's get started.

Understanding Jewelry Financing

To successfully offer jewelry financing at your small business, it's important to understand what jewelry financing is and what benefits it can bring. Jewelry financing allows your customers to purchase pieces through manageable installment payments. 

Jewelry financing can benefit your business in many ways, including:

• Increased sales: Encourage more purchases by allowing customers to break the total cost into payments made over a period of time.
• Enhanced customer loyalty: Customers appreciate the flexibility and are more likely to return for future purchases.
• Broadened customer base: Attract customers who may not have considered purchasing high-value items otherwise.

With the rise of buy now pay later services, many customers have come to expect flexible payment options. You will attract new customers with jewelry financing options, which ultimately creates more flexibility for your customers.

Now that you have a clear understanding of jewelry financing and its benefits, let’s start moving on to tips for offering jewelry financing at your small business.

Tip #1: Know Your Jewelry Customer

Before implementing jewelry financing, it's essential to understand your customers' unique needs and preferences.

• Identify your jewelry store’s target audience: Are your customers younger shoppers who prefer online shopping solutions, or are they more traditional and value in-store experiences?
• Segment based on behavior: Segment your customers based on their purchasing behavior to tailor financing options effectively.
  • Younger customers may prefer short-term financing with minimal interest.
  • Seasoned customers could appreciate long-term plans for high-value pieces.

Each customer has unique needs and interests. Understanding your target audience helps you create personalized jewelry financing solutions and improve overall satisfaction and loyalty.

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

Tip #2: Choose the Right Financing Partner

Next, make sure you’re confident when selecting a jewelry financing partner. There are many financing partners on the market, but there are some key considerations to look into when making your choice: 

• Ease of integration: Ensure the partner can seamlessly integrate with your existing point of sale (POS) system to simplify transactions.
• Reputation and trust: Choose partners known for their reliability and positive track record in the industry.
• Customer service: Consider partners that offer great support to assist both you and your customers throughout the financing process.
• Competitive rates: Look for partners who offer attractive rates that benefit both you and your customers.

Some popular financing partners in the buy now pay later market include Afterpay, PayPal, Affirm, Splitit, Sezzle, Perpay, Uplift, Amazon, Quadpay, and Klarna. You may consider financing partners that are commonly used within the jewelry sector, such as:

• Affirm
• Klarna
• Afterpay

Due to their ease of integration with existing POS systems and their ability to offer flexible payment plans, these are great options for jewelry stores.

Tip #3: Integrate Financing with Your POS System

We recommend integrating financing with your jewelry POS system. This streamlines transactions, ensuring accurate inventory and sales tracking while enhancing the customer experience with quicker checkouts. This allows your staff to focus on customer service, ultimately boosting satisfaction and supporting business growth. 

Here’s how to ensure smooth financing at the point of sale:

• Assess compatibility: Verify that the financing option is compatible with your current POS system. This ensures efficient transaction processing and data accuracy.
• Streamline operations: The integration should enable automatic tracking of financing transactions, simplifying reporting and reducing manual errors.
• Training and support: Ensure your staff is trained on the new system, and that ongoing support is available to resolve any technical issues.

A seamless integration with your POS system lays the groundwork for a successful jewelry financing strategy. With this foundation in place, it's equally important to equip your team with the knowledge and skills to effectively communicate these financing options.

Related Read: 7 Top Benefits of Social Media for Jewelry Stores

Tip #4: Train Your Staff

Effectively offering jewelry financing requires well-trained staff who can confidently communicate the benefits to customers. To make sure your team is prepared, start with the following:

• Provide comprehensive training: Educate your staff about the different financing options available and how they benefit customers.
• Use role-playing scenarios: Conduct role-playing exercises to practice discussing financing options with customers, building confidence and smooth delivery.
• Create resources: Develop an FAQ sheet to address common customer questions, helping staff provide quick and accurate responses.
• Hold regular training sessions: Schedule ongoing training sessions to keep staff updated on any changes or new financing options.

With an educated team ready to communicate and sell jewelry financing, your jewelry store can be equipped to increase sales and customer loyalty.

Tip #5: Promote Financing Options Creatively

Promoting your jewelry financing options creatively can attract more customers and enhance your sales. Try the following strategies:

• In-store signage: Use eye-catching signage to inform customers about the availability of financing options right at the point of sale.
• Website banners: Display banners on your website highlighting financing terms and benefits to capture online visitors' attention.
• Social media campaigns: Use platforms like Instagram and Facebook to run targeted campaigns showcasing how financing can make jewelry more attainable.
• Email newsletters: Include information about financing in your email communications to keep your customer base informed and engaged.
• Community events: Participate in local events and use them as a platform to educate potential customers about your financing options.

You can effectively raise awareness about your financing options and attract a broader customer base using these promotional strategies.

Jewelry Financing Success with Jewel360

Offering jewelry financing can significantly boost your sales and customer satisfaction by making high-end purchases more accessible. We’ve explored essential tips, from knowing your customer and selecting the right financing partner to training your staff and creatively promoting financing options. These strategies ensure that you’re not only meeting your customers' needs but also driving business growth.

Jewel360 is an all-in-one POS system that integrates with Affirm for jewelry financing. This integration provides a seamless and efficient financing experience, allowing customers to make purchases from your business via flexible payment plans. Jewel360 is designed specifically for small jewelry businesses, addressing common operational concerns and supporting your journey to success.

Ready to transform your jewelry business with Jewel360 — and see the benefits of financing firsthand? Schedule a demo today and discover how our solutions can support your success and drive growth.