Jewelry is a piece of fashion that can make or break an outfit, so there has always been a hunger for stunning jewelry pieces. You can see this from the global jewelry market value, valued at $230 billion in 2020, expected to increase to $292 billion by 2025.
This constant demand and the ever-increasing market value is why starting a jewelry business is a great idea — it has the potential to be highly lucrative. What’s more, you don't even need to be a skilled craftsman or artiste to start an e-commerce jewelry business.
However, increasing demands also mean more people strive to take advantage of it, making the market competitive. While starting a jewelry business in a competitive market may seem daunting, if you follow the proper steps to building a brand that offers something unique for online shoppers, you’ll be on your way towards great success.
Here is how you can start your jewelry brand and carve a niche for yourself in the jewelry industry.
If you're planning on selling jewelry and accessories, it's essential to identify your niche or specialty. Your business should have a clear vision and understanding of what niche style fits best for your products.
Determining what niche you’re going to operate in is essential. This is because choosing a specific niche can narrow down and help you focus on an audience — perfect if you’re a newcomer in the field.
An excellent way to start is by bookmarking jewelry blogs to help you gain access to the industry before you dive in. And tools like Google Trends can help you track the popularity of items in your industry while also allowing you to choose which ones are worth your time.
Besides bookmarking jewelry blogs and using Google Trends, you can also find your niche by asking these questions to yourself.
Take your time answering those questions, and soon enough, you will know what kind of jewelry business you want to start.
If you are looking to open a specialty jewelry shop, there are many things you need to know. First, define what type of jewelry you will be selling.
You can sell various kinds of jewelry, such as fine jewelry, costume jewelry or fashion jewelry, and handmade jewelry. Fashion jewelry — also known as costume jewelry — is an affordable and everyday accessory that you can use to mix and match various looks. Fashion jewelry comes in all kinds of materials and price points, from metallic to wood and plastic.
The average price of costume jewelry is between $1 to $100 per piece, but it can vary based on the material, quality, and style.
Meanwhile, fine jewelry is made from precious metals and gemstones with a high-quality standard. They're typically polished and considered higher quality than costume jewelry. Furthermore, fine jewelry usually lasts for generations and makes a notable impression even after completing the purchase.
Unlike fashion jewelry that produces everyday accessories, fine jewelry has a luxury customer base because customers only use these kinds of gems during special occasions like weddings and events.
Well-made and beautiful, handmade jewelry is a hot commodity — and more and more of it is finding its way online. From unique pendants to unique earrings, handmade jewelry is full of style that you cannot find anywhere else.
Handmade jewelry is a niche segment, but one that has been growing in popularity over the last decade. With sites like Etsy helping independent artists sell their creations, handmade jewelry has risen. While some handmade jewelry can be pricey, its availability and niche appeal make it a good investment for creative entrepreneurs who want to carve out a niche.
Understanding your target audience is paramount to building a successful business.
Crafting a brand that speaks to the core of your ideal customer's identity is what will help you capitalize on less competitive niches in the long run. Before you start your own jewelry business, it’s always a good idea to research the existing markets.
Figure out what your competitors are doing right and wrong, and be sure to find out exactly who their target audience is. Make an effort to understand what factors might make consumers choose you over the competition.
This will help you strategize how to position your brand in the market and give you insight into what your target customers want. But before you dive into designing a jewelry line, think about your dream customers.
Your business will thrive when you design from the heart and for a distinct customer.
However, identifying the target audience and gathering intel is only the first step in your business plan.
To start a jewelry business, you need to have a solid plan. A business plan is a written roadmap for your jewelry business' future. Business plans outline the goals and objectives of a company and present a strong investment case.
A well-planned business gives investors a clearer vision of what you're trying to accomplish, how you plan to get there, and the reasons behind your decisions. It also helps prevent mistakes by identifying potential risks or uncertainties that may arise within your business.
Not only will you be able to identify potential threats to your company's future, but you'll also have a checklist of metrics that you can use to measure its progress over time. A good business plan covers the following areas:
Establish your company's profitability with a business plan to better assess risk, determine product demand, and forecast the performance of any location-based enterprise.
While having a solid business plan is all well and good, it’s going to mean very little if you can’t communicate it properly. To ensure everyone is on the same page, you can share your business plan with a video, and one of the best ways to do it is with our Business Video Maker.
With it, you'll be able to expand on every single detail of the plans you have for your business to everyone and make sure they’re engaged at all times!
Next, you’re going to need to make your business officially listed as a company. But before you do that, there are several things you need to consider:
Jewelry Business Name
If you're considering starting a jewelry business, then your business name is arguably the most important part of that journey.
The right name can embody everything that your brand stands for. It should be unique and speak to customers about who you are and what you do.
Business website Domain Name
After your brand name, your customers’ experience with your website is the single most crucial element of any business.
You’ll want to check website domain availability, which you can do on website domain and hosting sites like GoDaddy.com.
When customers land on your site, a simple and elegant homepage must greet them because this can encourage them to spend more time browsing your website.
Furthermore, your e-commerce website should be easy to navigate and filled with beautiful images of the brand’s products.
Separate Business Bank Account
It's imperative to separate your business’s finances from yours. Not only is this essential for security purposes, but it will also help you stay organized and on track with your administrative work.
While there are no official rules for how to organize your business' finances, the majority of experts agree that it's best to open a business checking account.
Business Registration
Setting up your business is an essential step in starting a jewelry business. You will need to decide the type of company you want to be, whether it’s to be an LLC, S-Corp, or C-Corp. All three offer protection for your assets, though each has its own set of financial and legal benefits.
To open a small business, you don't need to know all the nitty-gritty details of taxes and business formation. You can hire an accountant or an attorney to help decipher this for you. But here are some basic information you need to know if you are starting a jewelry store
NOTE: This is not an exhaustive list, but many small business owners have a good understanding of the differences between an LLC and a C corp. Particularly, a corporation is a separate taxable entity that files a corporate tax amendment (Form 1120). It does not pay any tax at the corporate level, and its responsibility extends to the owners' responsibility.
Business insurance is a must for any jewelry startup. Every business needs liability insurance to protect against potential lawsuits, and most companies purchase general liability insurance as well, which protects them from a wide variety of possible claims.
If you want to make money as a jewelry designer, it’s crucial to think about your products as parts of a collection.
A cohesive, themed collection will help your customers understand what your brand stands for and why they should buy from you. A good collection will also encourage your customers to buy more at once, which means more money for you. To start a successful jewelry business, you have to strategize. It's easy for designers to accidentally fall into a trap by creating one-offs that don't fit a cohesive collection.
While it can be fun to just run with an idea and follow your heart, this strategy won't necessarily encourage customers to buy multiple pieces from you at once.
Designing for a collection is vital whether you're wholesaling your work or selling direct to consumers. To get started, browse the sites of your favorite designers to find inspiration for your designs — and don’t forget to keep an eye on the latest trends!
Once you have your product line in mind, it’s time to get cracking and brainstorming how to get production and acquiring supplies in bulk underway.
Instead of focusing on trends, build your brand around what you stand for. Follow the steps outlined below to create jewelry that reflects your values and who you are as an artist or designer.
The way you make your products depends on the complexity of the design, the price point, materials, and skill level. You can create jewelry in many ways
Handcrafted jewelry production: fine and one of a kind
Hand-crafting a piece of fine and one-of-a-kind jewelry can be a complicated process. But it is also a versatile, personal method that can be incredibly rewarding if you have the time and resources.
So how do you get started? An excellent place to start is by learning some of the more complex jewelry production methods, including:
There are a lot of resources online to help you learn jewelry-making, such as the ones on Skillshare or Udemy. Or you can take paid classes from popular jewelry makers.
Handmade costume jewelry is a way to start a business without learning how to make it yourself.
Costume jewelry often involves assembling existing materials, such as chains and beads, and doesn’t require special training or equipment beyond basic hand tools.
You can also make templates and hire people to help you assemble the different pieces.
Instead of trying to make your fashion jewelry from scratch, you can save yourself a lot of time and effort by reaching out to a local manufacturer. While this isn’t ideal for fine jewelry, if you’re looking to make a profit with a successful jewelry business, fashion jewelry is the way to go!
You can market your jewelry designs by outsourcing their production rather than investing in expensive machinery and needing an ample amount of space to store it.
While choosing a jewelry manufacturer for your store, you need to pay attention to a few things:
So, if you want to avoid being the butt of every joke on the internet, you need to check all of your materials thoroughly before starting production. Ask the manufacturer for jewelry samples to see the quality for yourself.
3D printing is the latest and most innovative service print-on-demand companies offer to get your product off the ground.
With 3D printing, you input your designs into an app and create a prototype. Then, you send out that physical prototype to test your product and see if it's the right one for you!
3D printing is an excellent way for entrepreneurs and inventors to get their products off the ground — without investing too much upfront.
Companies like Shapeways, iMaterialize, Ponoko, Sculpteo, Customcat, and many more offer print-on-demand services to help you launch your product online in record time.
With these platforms, you simply design an object digitally (3D modeling is most common), choose a material, and submit your work to the platform. Then, they'll ship your product directly to your customers!
Pricing your jewelry begins with answering one question: What’s your value? With this exercise, you will figure out exactly how much your jewelry is worth to the customer and thus the price to charge.
When selling jewelry online, it's essential to balance maximizing sales and pricing appropriately.
To ensure you're getting the most out of your business, avoid competing solely on price. While it may appear to be an attractive short-term strategy, it can ultimately backfire as you won't have the sales volume needed to turn a profit. Here are a few tips on setting Fashion and Fine jewelry prices.
Fashion Jewelry
Many jewelry designers try to compete with the ultra-low prices of mass-produced jewelry overseas. While you might think to cut costs by cutting corners, we highly encourage you to fight that urge and price at what you’re truly worth.
Otherwise, designers are likely to end up disappointed and financially struggling.
Fine jewelry: When you don’t base your prices on value, your profit margins suffer, and you're unable to fund the future of your brand.
This is especially true for jewelry, where the price per gram is essential for profit margins. $5 gold-plated beads and $9 cubic zirconia rings aren't sustainable businesses — and they certainly aren't ethical.
The bottom line is, do not be afraid to quote your price but also offer competitive pricing, so you get more sales.
Now that you have built a brand identity, a detailed business plan, and a product line, it's time to roll out your products. How do you sell your jewelry? There are plenty of ways to do it, but in this article, we’re going to narrow it down to four of the best methods.
You can open your physical jewelry shop based on your location and target market. Choose a space that represents your style and brand.
If you're looking to open a jewelry store of your own, location is just as important as product selection and customer service. Choosing a high-traffic area with lots of parking or foot traffic is a good idea.
A location near businesses that might attract a similar audience is excellent, too — try partnering up with them! Rent is nearly always going to be a startup cost, but it'll determine the size and location of your space.
If you're going to be selling jewelry online, a website is a must. Don't waste time trying to get a great-looking store up and running (Unless you have an idea about what you are doing).
Instead, hire a web design company that knows the ins and outs of eCommerce stores. While selecting an e-commerce platform can be daunting, it is essential to remember that these platforms are only as good as the vendors that use them.
Shopify, Big Commerce, and especially handmade-focused websites like Etsy offer easy-to-use tools that allow e-commerce businesses to easily display their products and drive sales.
While selecting a platform with many features isn't essential initially, it is vital to choose a platform that will allow you to grow your business in the future.
Social media platforms like Facebook and Instagram have also become places for online businesses. Facebook stores, Instagram business pages are a great blessing for start-ups and entrepreneurs.
You can use the Instagram page to list your products and sell them. Facebook groups and business pages are also helpful. Identify the social media platform your target audience uses the most, and start selling on it!
If you’re considering selling your jewelry in a trade show, make sure you’ve done your research. The event should be well-attended and feature the right buyers for your product.
You should also know what your ROI will be: can you stand to lose money (or break even) if you don’t make sales? Any successful marketing plan must consider its customer acquisition costs and its return on investment — trade shows are no different.
Marketing and advertising are two essential factors in an e-commerce business’ success. If you want to take your brick-and-mortar store off the ground or get your online jewelry store up and running, you need to start marketing.
Whichever category your company falls into, advertising your jewelry business is necessary. Getting a customer to give you their money is a challenge for any new jewelry business.
One of the best ways to do it is via digital marketing, as the possibilities are endless — and there’s no better way to capitalize on this than by using Facebook Ads. Especially with Facebook Video Ads as many consider these to be much more effective and engaging than traditional image ads
Not only can you target your ideal customer base by demographics, but Facebook Ads also offers plenty of other targeting options, such as interests and behaviors.
For example, if you’re selling engagement rings or wedding rings, you can even target people who recently got engaged.
Besides Facebook Ads, you can advertise and promote your jewelry via other social media like Instagram and Twitter. And as we mentioned before, videos are a great way to grab your audience's attention.
Start creating product videos, highlighting your best pieces, share behind the scenes of jewelry making, share packaging videos, etc.
If this sounds like too much work, you can always create short social media videos easily with the help of Offeo Social media video maker.
With OFFEO, you can create eye-catching, brand-driven content that leaves an impression on your targeted audience.
OFFEO eliminates the hassle of finding or hiring professional videographers. With drag-and-drop video editing tools, you can edit videos in minutes flat. There's also a library of professionally designed video templates to make your videos stand out.
1. Define Your Niche and Pick A Jewelry Type to Sell
2. Understand Your Target Audience
3. Set Up A Jewelry Business Plan
4. Make It Official
5. Design a Product Line
6. Produce your Jewelry
7. Price Your Jewelry Properly
8. Start Selling Your Jewelry
9. Promote Your Jewelry Business
Despite the jewelry industry's competitive market, you can still start a profitable jewelry-making business. It was reported that the recession didn't even make a noticeable impact on the industry.
According to a survey that asked more than 3,700 women, earrings are the most popular type of jewelry. And the bigger the round cut stones, the better!
The average wage a jeweler can make ranges from $26,050 - $77,330, depending on tenure and expertise. In New York, the average pay rate for a jeweler is about $62,340.
On average, a new luxury jewelry markup is between 250% - 300%. This markup percentage can be even higher for engagement rings.
Jewelry businesses come in all shapes and sizes. Some are multi-million dollar empires, while some sell custom pieces for a lone customer. But one thing rings true for both of them, growing a jewelry business can be difficult.
But do not be afraid to take the plunge. Work towards your idea. All successful jewelry businesses have to start somewhere, right?
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