Jewelry is popular among many retailers, as it’s inexpensive to stock and works as a gift and personal accessory. Wholesale jewelry dealers offer some amazing deals, letting you keep up with and cash in on demand for the latest trends. However, if you’re not careful, you could choose the wrong wholesaler, or you could purchase the wrong amount for your needs. Check out this guide for some helpful tips on navigating this complex market.
Looking for a wholesale jewelry supplier for your store?
M&M Merchandisers can help you keep up with the latest trends.
You're likely keenly aware that lowering your overhead on inventory acquisition and operations gives you more room to turn a profit. That means if you can stock your store for less, your business will make more money. This is made possible by wholesalers, who sell product in bulk to businesses for less than they would pay at retail. Wholesalers can then pass on these savings to you, allowing you to stock more of a certain product or a greater variety.
With jewelry being a prime market to turn over product, there’s also a great opportunity to buy it wholesale. Here are some tips for doing this successfully as a small business:
Imagine this: A couple of your new bracelets are a hit, and you have customers banging down your door. You stand to turn a big profit on this jewelry, so you decide to order more before your current stock runs out completely. Then your supplier puts you on back order for weeks, well after the trend has blown over. They let you down and cost your business money.
On the other side of the spectrum, you might find a brand-new product that you're certain will sell. You make an order, but when it arrives, it’s apparent that it came from low-quality manufacturers. The quality issues are so apparent that your customers have no interest. Your supplier let you down and cost your business money.
You must be able to vet and trust your wholesale supplier. It's crucial to turning a profit when purchasing goods wholesale.
It's not likely to happen with a supplier you've been working with for some time, but this is still important to mention: Just because the supplier is reputable doesn't mean the products are without scrutiny. Sometimes when suppliers change manufacturers a shipment turns out to be fakes.
This is why you should check product descriptions, which should include size, weight, material, and country of origin. Get familiar with your supplier's manufacturer vetting process and, when possible, vet the manufacturers yourself with the Better Business Bureau.
Let's say you found a supplier, and they seem above-board. Don't put a huge order with them on your first try. Place one or a few smaller orders so that you can see and test the quality of their products yourself. Once you're satisfied, you can begin putting in larger orders.
With the keystone pricing model, the retail price is double the wholesale price, meaning the markup is 100%. Keep in mind that it costs retailers more money to sell products when factoring in customer acquisition and operations cost.
On the other hand, you'll also want to be sure that you're pricing products to sell competitively. In the age of Amazon and other online stores, sometimes brick and mortars price themselves out of the market with a 100% markup. It's a delicate balance that you'll have to overcome.
You may also abide by the MSRP (Manufacturer's Suggested Retail Price). Doing so helps you stay competitive, presumably, as other customers buying the product are also looking at that MSRP.
The last thing you want to do is put in a large order of jewelry that doesn’t sell because the lot was outdated and not in fashion. While it's in the wholesale jewelry supplier's best interest to stock trendy items, it's also up to you to keep up with those trends and make sound merchandising decisions.
Once you have the stock from your wholesale supplier, it's your responsibility to sell it. That means getting creative with your deals and promotions. Buying psychology dictates that many shoppers love sales, even to the point that they'll be willing to spend more money when they perceive they're getting a deal. This means markdowns, buy-one/get-one promotions, and other deals can help the product fly off the shelves.
The larger lots that you purchase wholesale, the more of a wholesale discount that you get. That means that retailers who can purchase larger quantities have a potential for much higher profit margins. Once you enter into wholesale purchasing, you'll need to consider how much of the product you can turnover and balance that with how much you order. You'll always run the risk of ordering too much, but ordering smaller quantities will cost more per item.
Peak seasons mean you have the potential of turning over more inventory, so be sure to plan ahead for that and have plenty of stock. For jewelry, the peak seasons include Valentine's Day and the other gift-giving holidays.
By partnering with a reputable wholesale supplier, keeping up on merchandising best practices, and continuing to grow your store, you'll turn a profit in the jewelry portion of your business in no time. Start that process today by looking into M&M as a wholesale jewelry supplier.
There is a lot to consider when it comes to buying wholesale bulk jewelry. Here are helpful tips to know.
The jewelry industry is a multi-billion-dollar market, and retailers across the globe are making big profits. We want you to make big profits too. So, we investigated success stories to pinpoint what they were doing right. Then, we put together a list of nine tips to know before buying wholesale bulk jewelry. We want to share that information with you.
It is never a good idea to start something without being fully educated on what it is and how it can benefit your boutique. A supply chain starts with a manufacturer who creates a product. The manufacturer sells the products to a wholesale supplier at a discounted rate, allowing them to give you a great deal on the products, especially when buying in bulk. The more you buy, the less you pay for each item.
Finding a wholesale supplier who offers numerous different products in the clothing and accessories market saves you time and money. Look for suppliers with variety, one that can serve as a one-stop shop for purchasing clothing, jewelry, and accessories.
When buying wholesale bulk jewelry, it’s easy to get distracted, especially when the wholesale supplier has beautiful, high-quality options. Just because you like it doesn’t mean your customers will, however. When buying for your boutique, think like your customers. Who is your target market?
Also, consider the other items in your boutique. Don’t buy expensive fine jewelry if you are selling athletic wear. Don’t buy Christmas-themed jewelry for the Easter season.
Before you become a jewelry retailer, you must become educated on the jewelry you plan to sell. Your customers will have questions, and you need to give them immediate answers to make a sale. If you sell gold, learn how it’s made, the karats, lengths, designer, and weight. Have an outfit displayed showing off the jewelry? If celebrities are wearing it, have pictures available.
Being the expert in your products gives you the confidence needed to convince customers they must have it.
If you are going to sell trendy, modern jewelry, make sure it is trendy and modern. Seasons come and go so quickly it can be hard to keep up. You may want to buy fewer super trendy pieces and mix them with transitional jewelry that can be worn throughout the year.
To check the trends, work with your wholesale supplier. They have a direct line of communication with the manufacturers and can tell you what will be in and out each season.
There are two ways to shop. One is with your eyes. You spot fabulous jewelry, and your eyes send a message to your brain that boosts happy chemicals. You buy impulsively without following a budget and regret it later.
The second way to shop is to follow a realistic budget with thought and preparation. To ensure you do this, know your numbers before you shop. By numbers, we mean everything from your demand forecast, expected profit margins, storage space, and how much you can discount if you choose to run a promotion.
Knowing your numbers makes you a smart wholesale bulk jewelry buyer.
When forecasting demand, think of your customers. You’ve gotten to know your regulars, so you should know if they will like a piece of jewelry or not. If you think five of your regulars will love a piece of jewelry, purchase a few more than that for new customers.
Also, account for the storage space in which you are already paying. The more items you must store, the more it costs your business. It’s likely that if you are storing a lot of jewelry, there is not a big demand for it. In this case, you may have to create demand through marketing.
Marketing plans are underestimated. They are crucial for getting customers to buy products, however. A marketing plan should include your objectives, budget, and strategies. Get creative in strategy and cover all types of media, including social media, newspapers, podcasts, emails, etc.
Don’t forget to track your marketing efforts. You can do this by simply keeping track with pen and paper or by using your point of sale software to track sales.
Owning a boutique means you have little time to hire models, take photographs and videos, post them to social media, respond to feedback, and focus on all the other duties of your business. A quick tip is to ask your wholesale supplier if you can use their photos and videos to promote the jewelry you purchase from them.
Wholesale suppliers want you to succeed, and it’s likely that, as long as you give them a photo credit, you will be able to use their promotional tools. You may be able to use this as a negotiating tool in your contract with the wholesale supplier. You can agree to purchase a specific number to have access to marketing materials.
Never forget why you opened your boutique in the first place because you want to enjoy your career and life. Your vision is to feel happy at the end of each day because you are doing what you love and helping others look and feel great.
If you’re not enjoying owning a boutique, every day will feel like a burden. It will show in your purchases, customer satisfaction, and sales if you feel burdened.
Your energy and excitement about your boutique and the products will influence your customers’ attitudes. When customers have a fun, memorable experience, they will become repeat customers.
In conclusion, buying wholesale bulk jewelry is not a difficult task, and it doesn’t have to take a lot of effort if you work with the right wholesale supplier. You both have the same goal, to make sales. Working together can ensure you both succeed.