Starting a jewelry business is a great way to make more money, whether you are looking for a primary source of income, or you are simply looking to develop a secondary source if income.
Jewelry has historically been a very popular seller.
People buy jewelry for many reasons, including gift giving, for marriage proposals, as investments, and for personal indulgence. Think of all the different types of people who are in the market for jewelry at any given time and you will realize why there is so much money in the jewelry business.
When you start calculating how many people are looking for engagement rings, wedding rings, anniversary rings, etc., you start getting an idea of how large the marketplace is for jewelry.
And the above only includes the number of people looking for a ring for marriage related events. What about the number of people looking for rings for other purposes, such as for their personal fashion sense, and for investment purposes? Then put all of that aside and consider all the people in the market for earrings, necklaces, bracelets, pendants, and studs.
If you think you have an idea of how large the jewelry market is, think of the following. There are also thousands of fashion designers and theater producers looking for jewelry to use for their professional work.
Now that you have some idea of the number of people who are in the market for jewelry, you should think of how big the market is when you look at it from an international perspective. There are literally hundreds of millions of people in the market for jewelry.
And to give you an idea of how profitable it is, an engagement ring with a retail price of $3,000, can cost as little as $300 when bought wholesale.
Think of how much money a jewelry seller can earn if he sells one ring per week.
Multiply that by 10, and you will see how a jewelry business can make so much for its owner. And as we discussed earlier, there are hundreds of other types of jewelry buyers looking for thousands of different pieces of jewelry. So if there are so many potential customers, and there is so much money to be made, what stops more people from selling jewelry?
The biggest challenge is the high cost of keeping inventory.
A decent amount of stock can easily run a seller into the tens of thousands of dollars. Even if the seller has the budget to keep the jewelry in stock, there is no guarantee that he will be able to sell it before it is out of style, and there is no guarantee that he will be able to find customers for it. For the above reasons the jewelry business has traditionally been controlled by entrenched jewelry sellers who have a tight rein on the market.
The business has started to change with the introduction of jewelry drop shippers. A jewelry drop shipper allows a seller to market the jewelry, and only make a commitment to buy it once he has received a paid order for it.
For example, John Doe can list the jewelry on eBay, once an auction has ended with a successful bid, and the customer has paid John Doe for the jewelry, John pays the drop shipper for the item.
The jewelry drop shipper will then ship the jewelry directly to the customer, without John having to stock and ship the order.
John Doe can repeat the process an unlimited number of times without having to risk a single dollar in purchasing inventory. He can also advertise the jewelry by placing flyers in his neighborhood, at local schools and supermarkets, and can distribute flyers to his friends and relatives. The drop shipper will also give John Doe a ready made website that is stocked with thousands of pieces of jewelry. John Doe will have to bring people to the site, which can be done by using pay per click engines, press releases, classified ads, posting signs, flyer distribution, and word of mouth.
In other words, the drop shipper stocks the jewelry and processes the orders, while the seller, in this case John Doe, markets the jewelry to potential customers.
When the customer places an order, John Doe accepts the payment, and in turn places the order for the jewelry with the drop shipper. John Doe keeps the difference between the amount of money he charges for the jewelry, and the wholesale price which he pays the drop shipper.
It can be a very lucrative business, especially for someone who is creative, and can effectively market the jewelry.