Blue Nile is selling diamonds at Rapaport and below prices. I think
the people selling at wholesale prices directly to the public are
cutting each others throats. Yes, the brand name companies are
selling higher end products, but it is extremely difficult for the
small business.
Finding a niche and offering a product for less than $500 is the key
to begin online. We make a killing on ebay with a 60-70% auction
success rate, average sale of $30 triple keystoned. The funny thing
is people often bid higher than the same product offered on our
website.
Selling high end products at or below cost makes no difference,
unless the product can be systematically categorized. Stand in the
shoes of your client. Sending a few thousand dollars to a ‘virtual’
jeweler is scary.
Hi Doug, Thanks. Did you read Gerry’s comment about wholesalers
selling directly to the public? He is right, and if we didn’t begin
selling to the public with our internet site, I would be out of
business. Unfortunately, many wholesalers are giving the public the
very same prices. Our sales to jewelry outlets, before the holiday,
have been slow. I expect many jewelers will have a busy holiday and
restock in January.
Online, inexpensive item, sales to the public have increased in the
past month. We sell mostly African Pietersite with ebay since very
few jewelers stock this item. The item sells very well and we do
not have any real competition, but ebay is a pain in the arse.
For the most part, we have just as many people trying to sell us
through our website than vice versa. Although, this will pay off
big in the future, because “buying is where you make the money.”
Greetings! I wanted to relay my latest online experience. I
occasionally do searches for independent jewelers because I like to
see what everyone else is doing and I sometimes get inspired by
stone combinations and designs (not to copy mind you). I recently
found a website full of jewelry that I loved. When I visited the
Boston area in October, I looked up the store. Imagine my
disappointment when I realized that the pictures on the website were
far better than the actual product. In person, the jewelry looked
cheap and tacky.
That said, I still think a good site is important. This just goes to
show you how effective great pictures are.