How to Start a Jewelry Business: The Guide
Table of Contents
You have a gift for jewelry making and design. You are now considering beginning a jewelry business, or perhaps you’ve already done so.
Jewelry making and selling are two very different activities. Therefore, switching from a side business to a jewelry-making business involves many factors.
There are many opportunities to sell jewelry online, but they may also be very competitive. Small, up-and-coming jewelry businesses find competing with established existing brands challenging since they have larger advertising budgets, sizable social media channels and following, and well-established brand recognition.
However, it is anticipated that worldwide internet jewelry sales will increase. In addition, new jewelry businesses have emerged due to the growth of direct-to-consumer (DTC) brands, taking market share away from conventional brick-and-mortar jewelry retailers.
While it may seem difficult to launch your own jewelry business in a cutthroat industry, if you take the correct measures to create a brand that stands out for online customers, you’ll be well on your way to success.
Everything you need to know about starting and expanding an online jewelry business will be covered in this piece.
What Is the Investment Cost to Start a Jewelry Business?
Depending on the kind of business, starting your store might cost various amounts. For example, if you want to start a business selling costumes or handmade jewelry on an eCommerce platform, you might be able to do so for as little as $100.
For instance, grinding and polishing white quartz crystals is a terrific method to launch a side business selling inexpensive jewelry. Since you can find them in your garden and there is no need to buy them, their abundance makes them even more affordable.
These crystals are prepared for jewelry settings using inexpensive grinding and polishing equipment, some of which even incorporate sandpaper and basic household chemicals. Once they are prepared, you can use your jewelry-making expertise to create in-demand designs.
The fees will be higher if you wish to launch a more conventional jewelry company, such as selling gold or sterling silver jewelry in person. For instance, for as little as $20,000, you can launch a modest brick-and-mortar startup to sell your jewelry. However, depending on the supplies and tools, you’ll need and the location of your startup jewelry business, that amount might go to almost $100,000. Check out the top graphic design firms and find how it can help businesses to grow.
Is a Jewelry Store Successful?
Yes, it is possible to make money running a jewelry shop. For example, the average gross margin for jewelers in the global jewelry market is 42.6%. That means the jeweler makes about $42.60 in profit for every $100 of merchandise sold. Meanwhile, several elements, such as the kind of jewelry sold, the price point, and overhead expenses, can affect a jeweler’s profitability.
What should I do to increase the profitability of my jewelry firm could be a better question to ask. Or, how can I set my jewelry company apart from that of my rivals? You should be able to locate a market and sell your products with ease if you have the answers to these questions.
Finding your niche: 3 types of jewelry you can sell
Due to the fierce competition in the jewelry and accessory business, you must first locate a niche or area of expertise by providing a unique or unheard-of product.
Bryan Anthonys, which sells high-end jewelry, is an excellent example of a successful DTC jewelry company. Their jewelry line complements a mission that appeals to a specific audience based on shared ideals.
There are numerous strategies you can use to distinguish your jewelry products. You can market your jewelry to a target audience or for a particular use (dinner dates, weddings, prom, themed parties, etc.). There are countless options available when launching a jewelry line. The most popular jewelry brand types are shown below.
Fashion jewelry commonly referred to as costume jewelry, is for daily use. Contrary to fine jewelry, costume jewelry is made from cheaper imitation materials like wood, plastic, brass, copper, and synthetic diamonds.
Costume jewelry should be reasonably priced, ranging from $1 to $100.
Make sure to have a reasonable product pricing strategy if you’re considering selling costume jewelry, or you risk losing out on many potential customers.
Fine jewelry is frequently linked to a high-end lifestyle and is produced from precious metals and gemstones, including gold, silver, platinum, diamonds, and rubies. These jewelry items are fashionable, of excellent quality, and frequently worn on special occasions.
For instance, the fine jewelry brand Brilliant Earth sells engagement and wedding rings with a retro flair. Brilliant Earth provides a cutting-edge online sales experience by enabling customers to completely design their ring instead of visiting a jewelry store and choosing a band as is (e.g., the type of metal, gemstone, shape, etc.).
Depending on the materials used, size, sourcing, and brand reputation, fine jewelry products can cost anywhere between $100 to $3,000 per item (and occasionally even more).
The success of online shops like Etsy has demonstrated that consumers are eager to buy jewelry and other handmade goods. Even while handmade jewelry cannot be mass-produced, it is a good alternative for entrepreneurs who wish to create and market one-of-a-kind or customized items.
Marketplaces like Etsy give jewelry designers a tremendous opportunity to sell their handmade creations and gain a following. Still, it can be pretty competitive unless you’re ready to double as a jewelry designer and marketing to get Etsy customers to your online store. Scaling is challenging if you make every jewelry item by hand or on demand.
Three Statistics that Capture the Jewelry Industry
Building a jewelry business offers a lot of opportunities despite being quite competitive. The following statistics demonstrate the current situation of the internet jewelry industry.
The size of the jewelry market
By 2025, the jewelry market is projected to be worth $480 billion. China, the U.S, and nations in Europe are all excellent marketplaces for jewelry. However, as their per capita income rises, it is anticipated that younger industrialized nations will account for a higher share of jewelry sales.
Specialty jewelers are still expanding
Specialty jewelers make over 43% of all industry sales in the U.S. You can distinguish yourself from the jewelry industry competition by securing a distinctive niche.
Fine jewelry is still sold in conventional retail
Fashion jewelry will continue to sell 10% more successfully online than fine jewelry. Since it’s challenging to make a significant purchase online without trying something on first, customers are more inclined to buy jewelry at an affordable price when making purchases online than to pay $1,000 for a piece of jewelry.
How to start a jewelry business in 18 steps
You’ve come to the perfect location if you’re looking to start selling jewelry online. Let’s go over the 18 steps you need to follow to start your business and succeed in the jewelry space now that you have an estimate of how much it will cost to open your store and some information about whether it will be lucrative.
Pick your niche and target market
Successful jewelry businesses must have a distinct vision, awareness of their target market, and specialized style. Therefore, you should choose the type of jewelry you wish to sell before defining your niche. Then, to find trends and opportunities, you can identify your target audience and competitors by understanding the market that your jewelry caters to.
When customers begin their online search for jewelry, they frequently already have an idea of what they’re searching for, so you should always consider the kind of customer you want to draw in and make sure you know what they’re looking for.
With improved targeting, knowing your ideal client can increase your return on ad spend (ROAS), which can eventually help you spend less and generate more sales. check out the graphic design essentials for every business.
Study the Competition
It’s crucial to assess your rivals before going all out thoroughly. For example, what kinds of jewelry are being sold there? What price range? What makes your items different from theirs? What can you change to improve the viability and competition of your company?
It’s also crucial to conduct market research to see whether there is a demand for the kind of jewelry you intend to sell. For example, do people want to continue with traditional designs, or are they searching for something fresh and new?
To see how you can get a competitive advantage, research your competitors’ pricing, offers, social media channels, and marketing strategy. In addition, you should pay attention to what your rivals are doing to find additional ways to set your product apart.
Consider that one of your competitors sells teen costume jewelry, but customers complain about how easily the pieces break. With that knowledge, you can choose whether to advertise how your costume jewelry product lasts longer or provide a more extended return period.
Delivery times are another potential competitive advantage since shipping can increase client loyalty. The majority of internet buyers want two-day delivery of their purchases. Consider working with a third-party logistics company if you want to compete with jewelry businesses that sell on Amazon by providing 2-day shipping.
Decide whether to use offline or online
Choosing how you want to sell your jewelry would be best after determining your specialization. For example, do you intend to open a physical store or sell online? Some actions on this list may change slightly depending on whether the business is online or offline.
Both options have advantages and disadvantages. Customers may physically view and handle jewelry when purchased offline, but renting a storage space can be pricey. You’ll also need to spend money on inventory. Although selling online is less expensive and requires no inventory, potential customers cannot view or touch the jewelry before making a purchase.
It’s crucial to consider your target audience before making this choice. For example, selling offline might be better if your target market is residents. On the other hand, an online jewelry store can be a better choice if your target market is people who reside far away.
You may combine these two alternatives if you wish to present your business as a brick-and-mortar store with an online presence. A merchant that primarily presents itself as a jewelry business online but also has a physical presence to sell jewelry in Washington, D.C., is jeweler James Allen.
Additionally, you must choose how the jewelry will be delivered. Do you want to provide shipping for free? How do you plan to manage returns? All of these things should be taken into account when choosing between offline and online sales.
Select a Business Name
It’s crucial to pick a business name for your new company that is distinctive and memorable. It’s one of the first things your clients will notice. In addition, your target market and the type of jewelry you sell should be reflected in the name.
Here are some pointers for picking your company’s name:
- First, verify if the domain is accessible.
- Second, verify if a trademark protects the name.
- Third, use Google to check if another company is already using the name.
- Finally, pick a name that is simple to say and spell.
Brand the Business
After deciding on a specialty, it’s critical to establish a brand that is connected to your jewelry. As part of this, you should create a logo, tagline, and your own website and social media accounts that promote your work and help you build your brand identity.
For a unified brand appearance and feel, it is also worthwhile to hire a graphic designer with All Time Design to assist in developing a logo and other branding materials.
Your unique packaging and marketing materials will stand out when you design a brand identity, contributing to a memorable unboxing experience.
Make sure everything you produce reflects the principles and goals of your company and use your brand to engender a sense of exclusivity. For instance, jewelry brands like Tiffany & Co. and Cartier are renowned for their premium goods and upscale appeal.
Although building a brand can be labor-intensive, it is ultimately worthwhile. It will make your company more identifiable to customers and help you stand out from the competition.
Create Your Own Jewelry Business Plan
Your company’s objectives and the strategy you’ll use to accomplish them are described in a business plan. The following are some of the necessary details to include in yours:
- Your intended audience.
- Product and service options.
- Marketing approach.
- financial forecasts
Making a business plan for your jewelry business is crucial when setting up any business model, but it’s more crucial when you’re just starting. It will not only keep you organized and motivated, but it will also make it easier for you to get money from banks or investors.
You can design a successful business plan for your store using the online templates and resources.
Register Your Business
It’s time to register your firm with the relevant government agencies after you’ve written your business plan and decided on a business entity. This includes opening a bank account, obtaining a tax I.D. number, and registering your company name. Additionally, you must decide what company entity you want to register as (sole proprietorship, partnership, LLC, corporation, etc.)
Various tools and in-depth guides support you during the complex processes of registering your business. Research is crucial, and if you have any concerns, speak with a lawyer or accountant.
Create a Business Bank Account
A corporate account is a separate bank account you open just for your business’s transactions. All your earnings will be deposited here, and the money you need to cover business expenses. Having two separate bank accounts is advised to keep your personal and business finances separate. You risk combining your accounts if you don’t. When you are filing your taxes, that can also create a highly complex web. Additionally, getting a business card is a fantastic idea to start establishing credit for your jewelry store.
Make sure to include your company name, tax I.D. number, and contact details when opening a business bank account. A voided personal check or bank statement is also required so that the bank can set up a direct deposit for your business income.
Make License, Insurance, and Permit Applications
Before starting your own jewelry business, you might need to apply for several licenses, permits, and insurance coverages, depending on where you live. The following are the principal licenses, insurance policies, and permits you usually require for your business. Requirements differ from state to state.
- Business permit.
- Tax identification number.
- Business insurance (general liability insurance and product liability insurance).
- Sales tax permit
- Zoning permit.
- Inspection for health and safety (if selling to the public)
- Insurance for workers’ compensation (if hiring employees)
Choose to Outsource Manufacturing and Suppliers or Not
Many jewelers self-make their pieces of jewelry and drop-ship them to their customers. Jewelry-specific design software like Jewelry CAD Dream or RhinoGold 6 can be helpful for you (and your small team, if you have one) if you are a jewelry designer and business owner doing this. In addition, you can rely on shipping applications like ShipStation for drop shipping.
You won’t be able to produce your jewelry in your house and garage indefinitely as your business grows. Eventually, you might have to entrust a third-party manufacturer with all or part of the production. Unfortunately, finding a trustworthy company with quality control can be complicated.
Consider your materials: You will need beads, gemstones, clasps, precious metals, wire, and chains if you want to sell pieces of jewelry you have manufactured yourself from the comfort of your own home.
The Jewelry Manufacturing Association (JMA) and Made-in-America.org are two internet tools that might assist you in finding a jewelry manufacturer. Additionally, you might look locally for “jewelry producers” or “custom jewelry makers.”
Asking other jewelry designers for recommendations on reliable wholesalers or looking into obtaining a reseller license can be helpful if you want to avoid paying local sales taxes when making large purchases.
Ask questions about their production method and quality control procedures while speaking with prospective manufacturers. Obtaining recommendations from companies that have collaborated with them is also crucial. Last but not least, educate yourself as much as you can about making jewelry to sell.
Plan an Entire Jewelry Collection, Not Just Random Products
To attain your ultimate objective of producing money for your own business, every step of beginning your own jewelry business should be strategically planned. Creating jewelry that doesn’t fit into a unified collection is a serious error that designers frequently make. Even though it can be enjoyable to just go with your gut and do what feels right, that approach may not inspire buyers to purchase many items from you at once.
Whether you’re selling wholesale, online, or directly to customers, designing for a collection is crucial for all jewelers. Your consumers will be taken on a journey and have a special story told to them through a group of components. This gives the collection’s pieces a unifying concept and helps you establish distinctive jewelry brands. Customers are motivated to purchase many items from a great collection and eagerly anticipate learning more about each new release.
Your Product’s Price
Pricing your products is one of the most challenging components of opening a jewelry business. Price them so you can profit from selling them, but not so high that no one will buy them.
You can take the following actions to help you decide how much to charge for your jewelry:
- Do some research to find out how much other products like them are selling for.
- Include the price of labor and supplies.
- Take into account the time it took you to create the piece.
- Maintain the pricing at or slightly above that of your rivals and provide a discount for multiple purchases or a loyalty program.
Create a Marketing Strategy
Finding potential consumers to make your first sale is a task for any new jewelry business. Therefore, marketing efforts should focus on groups most likely to make purchases. Use the information you gathered from your study, including knowledge of the competitors, to create a multi-channel marketing strategy while you concentrate on growing a customer base.
You should use as many channels as you can, such as:
Before making decisions, consumers adore reading reviews and researching products. You can draw attention to what distinguishes your brand in social media posts. For instance, if you’re concerned with sustainability, write about how your items are excellent for the environment in your posts and include relevant keywords. Can you work out while wearing jewelry? Post pictures and videos of people wearing your jewelry while exercising. Ensure you hire a professional photographer for quality pictures.
Email marketing is still relevant, despite what many people think. Building an email list is one of the finest strategies to promote your business and increase customer retention. Follow email marketing best practices to avoid sending too many emails to clients, which can deplete your list and cause a high percentage of unsubscribes.
SMS eCommerce marketing is a rapidly expanding channel for online businesses, even though it is still in its infancy. You can almost guarantee that every SMS subscriber on your list will receive your messages and promotions, thanks to open rates as high as 95%.
Today’s biggest DTC eCommerce businesses have grown due to advertising initiatives on platforms like Facebook, Instagram, and Google Ads. Even though advertising expenses are rising, it is still possible for jewelers to use this channel. Spend time fine-tuning your audience targeting if you want to run advertisements so that they are seen by people who are most likely to make a purchase. And be careful while picking your channels; they could not perform as well for you as they do for other firms.
Search Engine Optimization (SEO)
The most satisfactory traffic is free traffic. Ad prices are constantly rising since many online businesses rely on social media advertisements to generate sales. Your product listings, blog entries, videos, how-to articles, and other types of owned content can rank highly in search results and receive more traffic without spending more on advertising.
Ocean and Co. appear as the top result for the “sea turtle bracelet,” as seen above, as an illustration of the value of SEO. This search term, which receives an average of 700 searches per month and reveals user intent, aids in generating free traffic to a specific product.
Use Google AdWords or Moz to locate phrases with high search volume and little competition while looking for the best keywords to draw organic traffic.
Create a Website for Your Own Online Store
You will need a professionally-designed website for the jewelry brand sales and any offline store or your own online store. Customers find out more about your brand and business thanks to this, making it simple for them to make purchases.
A variety of firms can assist you in building your own website for selling jewelry online if you have no experience with web design. All Time Design is a brand that helps design your website. The company handles the UI/UX design for the website.
With so many eCommerce platforms, tools, and connections available, creating an eCommerce website is simpler than ever. Platforms for e-commerce are made to make opening an online store as simple as feasible.
For clients to make online payments for their purchases, you must also set up a payment processor. Popular choices include PayPal, Stripe, and Square. Don’t forget to get some images of your works taken by a professional photographer. Jewelry blogs with appealing images and thorough product descriptions encourage visitors to purchase jewelry. Learning how to sell pieces of jewelry on Etsy is an additional choice. This will enable you to start selling online right away.
Market Your Business
There are several tactics you can employ to market your jewelry business. It’s also crucial to market your company offline, even if you have an internet store. Offline, this is accomplished by:
- Participating in regional craft fairs and exhibitions: It is a terrific opportunity to sell some of your jewelry and expose it to potential clients.
- Setting up a booth at your neighborhood mall: It might be a cost-effective method to contact more people, but it can also be expensive.
- By getting in touch with local boutiques and shops: You can propose to sell your jewelry there or lend them some items for a runway display.
- Making a mailer: You can make a mailer that features your products and gives visitors to your website or online store a discount.
- Using promotional materials: Customers can discover more about your jewelry and how to buy it with the help of business cards, pamphlets, and product tags.
Aside from that, there are other ways to broaden your reach online, such as social networking, paid advertising, and search engine optimization (SEO). No one is forcing you to choose between the two; just keep in mind to test out a few to determine which works best for you. Your marketing efforts will soon begin to draw the ideal customers you want to visit your jewelry store.
Fulfill Orders and Ship Products
Once the orders start flooding in, it’s critical to be ready to rapidly and accurately complete them. This entails putting in place a procedure for:
- Obtaining consumer orders
- Selecting the appropriate goods to send
- Securing the packaging of the goods
- Ship them out as soon as you can
- Having a return policy and handling returns
You can hire a third-party business to manage fulfillment if you cannot do so yourself.
Organize Your Taxes
Running a jewelry business requires keeping track of your earnings and outgoing costs. You may also be required to submit taxes on your behalf. Establishing a method for managing your finances year-round is the most significant way to stay organized. This may consist of:
- Creating receipts and invoices
- Monitoring stock
- Keeping track of payments and expenses
- Using an accountant to assist you with tax preparation
The direct taxes you might owe are:
- Income tax
- Tax on self-employment
- the local sales tax
- Excise duty
State taxes may also differ, so research the particular taxes that apply to your company, stay compliant, and stay up to date on filing dates. It’s better to be organized in advance because submitting taxes late or incorrectly might result in penalties and interest costs.
Grow Your Business
Having learned how to start a jewelry business, the next thing on the agenda is to grow it, either offline or online jewelry business.
It’s time to start considering strategies to expand your firm once you have a system in place and everything is going correctly. This can entail adding new products to your jewelry line, exploring untapped markets, or recruiting more employees.
Managing your inventory is something else to consider because it can easily escape your control if you don’t keep a close eye on it. However, if you want to stay organized and maintain an exact count of your products, you might consider utilizing inventory management software.
Regardless of the growth techniques, you choose to implement, never lose sight of your target audience and their requirements. Your company will prosper if you keep offering top-notch items and first-rate customer service.
Your Best Offer
Even if it’s never simpler to launch a profitable online business, starting a jewelry business is still challenging.
Creating a quality website is necessary. You cannot sell online well if you do not ensure your designs fit the trend of today. Your web page has to be suitable for PCs and mobile devices. The UI/UX design has to be excellent and user-friendly.
All Time Design helps you by assigning a personal designer to help you achieve that high-level website design you desire.
ATD offers a standard, pro, and premium package. Its price ranges are $499, $999, and $1,699 respectively. The business will deliver this service seamlessly if your website desires motion graphics and animation.
Quality designs boost your selling chances. So it is best to let All Time Design help boost that chance.
Remember, stay up to date on the latest jewelry trends. This will help design new products to sell online.