Using Jewelry as a means of creating revenue should not be overlooked by any serious-online-entrepreneur. Why? Read on…
I am often asked why I got into the jewelry industry. Easy answer to that one… “Do you know a poor Goldsmith”?
Seriously though, the onset of e-commerce revolutionized the trading of precious stones, gold, and most of the other raw materials that are combined to produce jewelry. To a large extent pricing was previously controlled by diamond merchants like De Beers and retailing by jewelry chain uoking stores charging top-dollar for a mediocre product. Online trading changed all that. Mining companies found that they could deal with manufacturers directly and luxury jewelry became more accessible. What didn’t change was the consumers’ perception of the value of high-end jewelry.
Unless you are into silicone chips, there is no other item I can think of that offers such a high level of turnover in relation to the size of the item*, as jewelry. This potentially means a very profitable product that it is easy to handle, you don’t need huge storage facilities or complex packaging systems. If you want to, you can set up a multi-national empire in a one bedroom apartment.
If you “buy clever” (which I hope you will, after reading this) you will be able to store a months inventory in a small to medium sized safe. Added to that, very little can go wrong with say, a diamond ring after it is sold and warranty claims are therefore minimal.
So what do I mean by “buy clever”? Well, as a rule of thumb, your buying price for any item should be no more than a tenth of the market price.
e.g. After researching the market you find that the average sale price for a 10K gold ring is $100.00. You then need to find a source that sells something similar for $10.00.
Can it be done? Yes. Are there sources online that offer a 900% lift? Yes. Where do I find them? Sorry but I can’t divulge that
information, it’s down to you to do the research but I assure you they are there and can be found online.
The above points, added to the quite phenomenal margins attached to jewelry, make this product group a very interesting and viable proposition.
In the meantime, here is a snippet of information to consider. A relatively expensive item of jewelry for a small local jeweler would be in the region of $20,000.00, the production cost for that very same item is around $500.00. I am not saying that you are likely to earn $19,500.00 on single items but this does illustrate the potential.
*The “en tremblant” flower brooch by Bulgari, 1958, which achieved $1.1 million (1998) in auction at Christies, is an extreme but good example, further examples can be found on the Christie’s web site.
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