Start A Jewelry Business Online – Industry Insights & Process

According to Statista, the worldwide online jewelry market is predicted to reach a value of $117 billion in 2027. This economic outlook paints a promising picture for a large global market, which presents opportunities for both established industry giants and new market entrants.

In this blog, read valuable insights on how to enter this thriving and continuously growing industry with an online jewelry marketplace. 

Why Start An Online Jewelry Business?

Historically, jewelry has been an integral part of human culture. The earliest record indicating the use dates back to Ancient times – around 5500 years ago! Since the early days, it has been a means of self-expression, symbolizing style, and carrying emotional value. Furthermore, jewelry can also serve as a commodity that holds commercial value. In some traditional societies, especially in Asian cultures, jewelry has been passed down within families as an inheritance – ensuring financial security. 

Leveraging this wide-ranging relevance, the jewelry industry has inspired and fuelled commerce in a number of ways – involving crafters, designers, investors, traders, Supply chain & retail management, et all.

And all these facets have individually spurred micro-specializations within the industry. For instance, jewelry design is in itself an industry. 

Significantly, the last few years have belonged to the maturity of eCommerce, disrupting multiple sectors within the retail space, by creating new transactions in the retail ecosystem by bringing a business online. 

And in this ongoing retail revolution, the jewelry industry as well has witnessed eCommerce disruptions. 

Take, for instance, Blue Nile, which allows consumers to customize their wedding ring shopping, online; BNT Diamonds, which allows investment in diamonds; or UNI Diamonds (Powered by Yo!Kart), which has revolutionized and streamlined B2B diamond trade with a diamond trading eCommerce marketplace. 

These are just some of many such examples. Given these opportune conditions, the jewelry industry is ripe for many more such eCommerce disruptions to happen. 

Niches within the Jewelry Industry

The significant growth of this industry also implies that sub-niches within the industry have significant individual growth potential. Discussed below are some of the sub-niches that aspiring entrepreneurs can think of investing in.

Fine Jewelry

Catering to the luxury end of the market with high-ticket products, fine jewelry includes rare gemstones, precious metals, and unique designs – crafted with extensive attention to detail. The allure of fine jewelry lies in the rarity of the materials used and the high level of craftsmanship involved.

Buyers may consider fine jewelry to be a long-term investment, as some pieces increase in value over time attracting high resale prices. Wedding bands, engagement rings, and gemstone earrings are some examples of fine jewelry. 

Fashion Jewelry 

More accessible and affordable, Fashion jewelry is more dynamic and caters to the latest trends and styles. It involves the use of affordable raw materials and more economical development processes. 

Non-precious metals, such as stainless steel or brass are used, and often incorporating faux gemstones, beads, and other materials. 

However, fast fashion trends may mean styles can go out of style faster. 

Body Jewelry

Jewelry for Body piercings, including nose rings, belly button rings, tongue rings, eyebrow rings, and more, body jewelry is more individualized, particularly because of the differences in piercing sizes and potential allergic reactions to metals.

For instance, a single nose ring could be made in gold, sterling silver, or implant-grade titanium with a straight back, L back to the left, L back to the right, screw, or curve. Customers often have varied preferences, influenced by factors such as comfort level, health, and piercing placement.

Vintage or Antique 

Jewelry from the times gone by, this niche leverages nostalgia and history to trigger purchase decisions. Historically relevant ornaments and adornments are preserved and collected. Vintage products often have a unique story related to their previous owner, historical era, or original fashion designer. 

Custom-made 

“Made-to-order,” or personalized jewelry for each buyer, is a niche in itself leveraging custom designs by boutique sellers. 

While buyers get personalized adornments, custom-process can be time-consuming, catering to specifically high-ticket sales. 

Buyer-specific 

Jewelry catering to a specific buyer – for instance, Jewelry for men or children; or Jewelery for specific occasions, for instance, wedding jewelry – focuses on a specific genre by segregating assortment based on gender, age bracket, occasion, demographics, or more – can spur an online Jewelry business brand. These online jewelry businesses can gain traction with specialized products on offer. 

B2B Online Jewelry Business

Connecting supply chain participants in B2B trade through digital channels, aggregating a fragmented industry – often streamlines operations, expedites bottlenecks, brings in additional value, navigates complexities, and adds transparency to processes. 

The jewelry B2B trade is no different and has global opportunities for smaller or bigger businesses to explore digital sales disruption.

For instance, UNI Diamonds, Joor, Polygon, and more – are B2B marketplaces in the jewelry industry.

Trends Shaping the Future of the Online Jewelry Industry

As more consumers turn to the internet for their jewelry purchases, businesses in the industry are constantly evolving to keep up with the latest trends and stay ahead of the competition. In this section, we will explore some of the key trends shaping the future of the online jewelry industry.

Preferring Pre-Owned Jewelry

Jewelry resale is gaining momentum not just for vintage or fine jewelry, but for others as well. Resale is gaining traction since buyers are considering pre-owned jewelry that is exclusive or are simply undercutting the price with a pre-owned accessory. 

Rental Jewelry Marketplaces

Popular rental marketplaces like Verstolo, or Haute Vault have successfully leveraged jewelry rental to a wide customer base. 

Eco-Friendly & Sustainable Material

The jewelry industry is increasingly focused on sustainability due to consumers’ growing awareness of the environmental consequences of their purchases. In response to this demand, numerous jewelry designers are incorporating eco-friendly and sustainable materials like recycled gold and silver and organic gemstones into their designs.

These materials not only have a positive impact on the environment, but they also offer distinctive and captivating designs that distinguish them from conventional materials.

3D Printing Technology

3D printing technology enables the production of intricate and complex designs with ease. It is a faster and more efficient process, replacing the traditional wax-mould process. It offers greater flexibility in design, and the ability to offer a wider range of products at competitive prices.

AR (Augmented Reality)

AR is expected to become a popular trend in the online jewelry industry for several reasons. It can effectively bridge the gap between customers’ expectations and the actual product received upon ordering. This could potentially decrease the number of product returns while also enhancing the overall shopping experience, both online and in-store.

Smart & Connected Jewelry

Smart Jewelry adds to the list of Internet of Things (IoT) wearable tech. Such wearables can monitor health, track fitness, and even send notifications. 

Top Players in the Online Jewelry Ecosystem 

While established horizontal marketplaces like Amazon, Walmart, Alibaba, and the like continue to be favoured online buyer destinations for jewelry as well, competing with them may not be viable for new entrants.  Let’s explore popular players which are exclusive to the online jewelry industry niche, and can inspire building a brand exclusively catering to jewelry. 

Blue Nile

Blue Nile is a jewelry e-retailer, renowned for its extensive and exquisite collection of high-quality diamonds and fine jewelry. It offers diamonds, engagement rings, wedding bands, and other fine jewelry. The website offers an intuitive interface and also allows buyers to personalize their purchases.  

RubyLane

An online marketplace for vintage, antique, and collectable items also has on offer jewelry products such as antique rings, vintage brooches, lockets, and more. Moreover, fashion products add to the ensemble of the marketplace. The theme of the marketplace is centred around vintage products, with history attached to them. 

WP Diamonds

An online marketplace for pre-owned diamonds, fine jewelry, luxury watches, and other designer high-ticket products. The business model is based on buying and reselling products. In other words, WP Diamonds is a P2P marketplace that connects and liaisons with users with the sale of jewelry and other luxury products. 

UNI Diamonds 

UNI Diamonds is the world’s first B2B diamond trading platform based out of Israel. The marketplace streamlined B2B diamond trade with a platform that provides transparency in the ecosystem. Traders can evaluate, bid, or buy diamonds in a digital ecosystem that has revolutionized legacy processes leveraging purpose-built digital functionalities. 

Ways to Start a Jewelry Business Online

As discussed above, the Jewelry industry has within itself multiple commerce opportunities. This further allows entrepreneurs to fashion their online Jewelry business in multiple ways. While this can be done in multiple ways, let’s discuss some popular ways to do it. 

Offer Services 

A digital platform can be built to offer services like design. For instance, Jewelry Designs, and Metal Pressions are platforms that offer jewelry design services. 

Offer Your Products

An online store can be built to sell Jewelry products. Typically, an online store warrants the business to maintain an inventory to sell on the platform. Although there are dropshipping providers, since there are limited revenue capabilities in an online store, dropshipping will further mean revenue sharing. 

An Online store is more suitable for businesses which have a well-established brand with a physical store presence. 

Offer Products via third-party sellers

An online Multi-vendor marketplaces are online platforms that allow multiple sellers to offer their jewelry products to customers through a single marketplace. These marketplaces have become increasingly popular in recent years, offering a wider variety of jewelry products to customers and allowing jewelry makers and designers to reach a larger audience.

There are several reasons why building a multi-vendor jewelry marketplace can be a good business opportunity. Some of them are as follows. 

• Wider Product Range: A multi-vendor jewelry marketplace allows to offer a wider range of products to customers than a single vendor website or brick-and-mortar store. By hosting multiple vendors, businesses can offer customers a variety of jewelry styles, materials, and price points, which can increase customer satisfaction and loyalty.
• No Inventory requirements: The marketplace platform does not need to maintain an inventory of its own.
• Increased Traffic and Sales: Multiple vendors and a large product range mean more buyers and increased traffic. 
• Multiple Revenue Streams: Multi-Vendor websites offer multiple revenue generation possibilities via product commissions, subscription services, monetizing website assets, PPC campaigns, third-party services, and more.

Significantly, the other shared business models would require in-depth industry insights and knowledge. In an online marketplace, the sellers are third-party vendors, so new entrants in the jewelry industry can still operate as they are just offering back-end services and infrastructural support.

Considerations Before Starting a Jewelry Marketplace

An online Jewelry marketplace would need key considerations before commencing profitable operations. Some of those are discussed further.

Onboard Sellers With Valid Certification

While onboarding sellers, valid certification guaranteeing  their reliability and licensing to sell the jewelry can be a prerequisite. With a valid registration certificate, buyers will get an assurance of seller reliability.

Seller approval on the eCommerce platform can be regulated with imperatives such as valid certification requirements in place. Additionally, The marketplace Admin can maintain complete control over seller activities – such as registrations, sales, and more.

Build a Streamlined Workflow for Sellers

In an eCommerce marketplace Sellers make up for the users as well, and onboarding sellers also forms a part of the business strategy. Ergo, there is a need to establish smooth processes and detailed documentation. In order to achieve that, the following steps can be considered 

• A quick and easy seller registration process
• A systematic approval flow for sellers and their products by the admin
• Individual seller dashboards to manage selling operations efficiently & effectively. 
• An organized product management system to audition their products with the help of detailed information. 
• Clear seller guidelines, detailed expected quality standards, and a transparent commission structure
• Notification channels to communicate frequently.

Streamline Product Listing on the marketplace 

To simplify the process for buyers when selecting jewelry, the marketplace admin can establish specific guidelines for sellers to showcase their jewelry and reviews. These guidelines can include:

• High-quality pictures with good resolution and zoom-in options for viewing intricate designs
• Comprehensive product descriptions that provide information on carats, purity, and jewelry design
• Transparent information about prices and any additional costs buyers may need to pay for customizations (if available). 
• Customer ratings and reviews on individual seller pages influence purchase decisions

Have a Mobile First Approach

Mobile is gradually becoming a device of choice for a growing number of consumers. In such a scenario, offering mobile apps in addition to web apps will help in reaching a broader customer base. 

Furthermore, the mobile app can focus on aesthetics, intuitive UI and UX, load time, and file sizes to enable web pages to interact with customers and facilitate satisfying online shopping.

Formulating a High-Impact Marketing Strategy

A purpose-driven marketing strategy requires careful planning and execution across a range of channels, including social media, advertising, and influencer marketing.

Let’s discuss building a powerful and comprehensive marketing strategy business owners can leverage for their jewelry marketplaces to help them stand out and achieve their business goals.

Launch Paid Media Advertising Campaigns

Popular social media platforms such as Facebook, Google, and Twitter offer paid advertising options. These platforms provide an effective channel with a colossal audience to effectively audition your Jewelry marketplace business. 

Additionally, high-performing and popular publications and blogs can have available advertising slots. If chosen prudently, this can be an effective medium as well to reach your target audience. 

Collaborate with Influencers

Social media Influencers can have a significant level of “influence” over their audience. The worth of their content establishes perceived expertise and, above all, authenticity.

Influencers can be open to partnering with brands to advertise their products. However such collaborations can be driven by shared values, prioritizing branding goals.  

Suggested Read: eCommerce influencer marketing strategies

Create Content Marketing & SEO Strategy

Content marketing involves publishing marketing collateral in the form of articles, videos, infographics, emails, and more. This strategy is highly effective in today’s media-focused world where people conduct research before making purchases. Furthermore, Search Engine Optimization (SEO) is utilized to make the content visible on search engines like Google by using relevant keywords.

Launch a Newsletter

Build your brand with a consistent user engagement. An email newsletter can be a valuable marketing tool to keep the target audience intrigued by your jewelry brand and the products on offer. The effectiveness of a newsletter relies on its ability to captivate readers beyond simply advertising your products.

Build Social Media Presence

Social media is an effective way to promote your jewelry marketplace. Create a presence on popular social media platforms such as Facebook, Instagram, and Twitter. Post photos and descriptions of your jewelry products, and engage with your followers to build a community around your brand. You don’t need to be present on all social media platforms. Rather, build up each one, one at a time.

Leverage User Generated Content (UGC)

Jewelry shopping, especially involving high ticket purchase decisions hinges on buyer trust. UGC in the form of User Reviews and testimonials play a significant role in building that trust to trigger purchase decisions. A study found that when presented with two similar products, people are more likely to choose the one with more reviews. 

Furthermore, UGC can be leveraged in marketing efforts. For instance, featuring high-impact reviews or testimonials on the website, using them in social media hashtag campaigns, including them in ad copy, incorporating them into a buyer’s guide, or highlighting them in email marketing campaigns. 

Wrapping Up

In essence, the online jewelry industry is thriving and presents opportunities for both new and established businesses. A Jewelry marketplace platform can serve as a central hub to attract and build trust with customers. To leverage a distinct USP, the marketplace can be built to cater to a specific sub-niche or cover alternate business opportunities within the jewelry industry. 

Success in this industry requires a strategic approach, adaptability to changes, and a focus on branding, industry trends, new products, and marketing strategies. Maintaining strong customer relationships through various channels is also crucial. It is important to balance technology, marketing, and human operations to create a satisfying and engaging customer experience.

To build a jewelry eCommerce platform, Yo!Kart, a leading turnkey solution can provide a convenient, fast, and affordable way to build a contemporary Jewelry platform with essential eCommerce features, pre-integrated business APIs and payment gateways. Additionally, any personalization required can be availed with the in-house Agile team.