When the jewelry trade flourishes, it signals good times ahead for the economy. But the industry is a volatile one, and if consumers are feeling tighter on their wallets, they may be less able to afford new jewelry purchases. As a result, jewelry stores and jewelry designers have a unique responsibility to be transparent with shoppers about the costs associated with their products, as well as to provide options for repurchasing or trading in items.
The evolution of jewelry trade has its roots in the caveman era when personal adornment was crudely fashioned out of sea shells, bones and claws. Graves of prehistoric people have revealed a variety of jewelry styles, including necklaces, rings and earrings. In modern times, jewelers work hard to offer high-quality, well-made adornments at affordable prices that are backed by quality and ethical standards.
Selling jewelry involves a lot of moving parts for retailers, from managing inventory to educating shoppers. A company’s behind-the-scenes technology stack is crucial for ensuring that these processes are managed with accuracy and consistency. Regardless of the size of the business, every jewelry store needs to be able to track inventory, communicate product details and policies, and manage customer service issues, such as questions about sizing and materials.
In addition to a back-office technology stack, a jewelry shop needs an online presence where it can market its pieces and make it easy for shoppers to find and purchase what they want. This can include a website, social media channels and a mobile app. An online presence also allows a retailer to leverage search engine optimization (SEO) strategies and social media advertising.
As with other retail businesses, jewelers must balance how much merchandise they hold on their shelves versus how quickly it sells. They also must factor in the costs of shipping and theft protection. The goal is to have enough inventory to sell what is popular while maintaining a consistent level of freshness that attracts loyal customers.
Jewelry designers can make their own pieces or outsource the manufacturing process. Handmade pieces create a higher value for shoppers, but they take time to produce and are difficult to scale. This is why many handmade jewelers are boutique retailers or solopreneurs on platforms like Etsy. Using an outside manufacturer offers flexibility and allows jewelers to scale production, but it can come with added fees.
Jay Feder is a highly-skilled jeweler who works with a wide range of metals and stones. He’s also experienced in designing and producing bespoke jewelry. He assesses each piece with clients and educates them on their options before determining the fairest price.
In some cases, a client will bring in an existing piece of jewelry to repurpose. For example, they might have a family heirloom that isn’t being worn anymore but still has sentimental value. The jeweler will determine its value and give the client a credit amount to use towards their next purchase. The jeweler will then resell the item for more than they paid out to the client, making a profit on the sale.
