When it comes to setting up a jewelry business, most — if not all, businesses start with reselling products. That means buying jewelry at wholesale and selling them individually at a higher margin.
This kind of business model is basically foolproof for most. The approach is textbook: buy the thing cheap and sell the thing with profitable margin. It’s also a great option for those who want to sell jewelry but are not interested or have no means of making them.
But when it comes to buying wholesale jewelry for resale, there are a lot of things that you should consider. For your business to actually succeed and maximize its profits, you can’t just simply buy your products to sell. It takes a bit of market research and business tactics for your jewelry retailing business to be a hit.
Don’t worry, it’s not that complicated. We’ve compiled the most useful tips about buying wholesale jewelry for resale to make sure that you’re getting the best deal available in the market with the best products that you can sell.
- Know What Your Competitor Sells
Before you even look for a wholesaler or buy jewelry at a wholesale, you have to know which products to buy first.
Doing practical market research is a great way to gauge the jewelry trends. It’s pretty straightforward: go to a website of another jewelry seller and just browse the products that they have to offer. Take note of the style, type, and brand (if applicable).
Check what their top products are — most sold items, items that are reviewed the highest, and even the seller’s recommended ones. That way, you’ll be able to gauge what jewelry styles and trends are well-sold at the market.
Just like you’re determining which products are selling well, you should also check the types of jewelry that are not. Usually, you can determine this by the number of items sold. If the data isn’t visible on their sold, check the products that are usually on the discount section.
- Attend Jewelry Trade Shows
When looking for your wholesaler, you can absolutely do it through online means. However, if you have the time and you’re willing to exert a little effort, do attend jewelry trade shows that showcase the jewelry niche that you’re planning to sell.
In these trade shows, you’ll have the opportunity to meet with other jewelry vendors who are offering wholesale products. You’ll be exposed to what kind of products are appropriate to buy in large quantities to sell. This is really important especially in the jewelry reselling business where trends come and go. You certainly don’t want to accidentally buy a lot of items with a certain design that won’t completely sell because the trend is over.
These jewelry trade shows happen frequently. Most of them are included with other trade shows for clothing and accessories. You just have to find which events are near you online.
However, you can’t just waltz in on a trade show as they are not open to the public. Most trade shows require you to present proof that you’re part or an owner of a business such as a business permit and the likes.
- Join Buy and Sell Groups to Build Connections
Expose yourself to the jewelry market and join different buy and sell groups in your town or even in your country. These groups can be easily accessible online through social media platforms like Facebook and Linkedin.
By joining these buy and sell groups, you’ll be able to meet new people are also sharing the same goal and vision as yours. If you come across a jewelry store that is based in a different location for you two to become competitors, they might be willing to share the source of their wholesale jewelry with you.
As a result of proper connection-building, other people will begin to discover that you’re in the process of building your own jewelry business. It’s easier to find wholesalers and suppliers because they’ll be the ones to strike a deal with you.
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- Take Advantage of Live Auctions
When buying wholesale products, you might also want to check out live auctions online. A lot of wholesalers do live auctioning on eBay and other sites. During these live auction periods, they provide better deals compared to the fixed price that they have for their items.
It might take a bit of time to get used to online biddings and auctions but with a bit of watching, you’ll be able to get the hang of it. Take note of different jewelry wholesalers that do live wholesale auctioning so you can check out if their products are worth buying for your business.
- Know the Difference Between Wholesalers and Liquidators
Usually, when we buy bulk products at a discount, we immediately think of it as wholesaling.
While it holds true to a certain degree, as someone who is looking to buy wholesale jewelry to resell it, it’s important to know that not all “wholesalers” are wholesalers. Especially if you’re buying online, you might come across wholesalers who are liquidators.
Liquidators are wholesalers that buy bulk products directly from a manufacturer or other big companies and brands and sell them at a lower price. These products are sold less from their retail price because usually, there are the items that the original manufacturer or merchandiser no longer wants. These products are called factory closeouts.
Closeouts are anywhere between items that didn’t pass their quality control tests, old products that no longer sell, and even actual damaged goods.
When it comes to jewelry, manufacturers would usually hold closeouts at the end of every season where their items no longer sell because it might be out of trend already or they’re already releasing a new line of merchandise.
There are ups and downs when buying from liquidators. The most beneficial aspect of it is that you’ll get products that are way below the retail and the wholesale price. However, you might get damaged products or jewelry that will no longer sell because it’s no longer what your customers want.
6. Creat Your Own Jewelry Brand and Maintain Your Audiences
When it comes to a point that your reselling of jewelry becomes healthy and profitable, you will always want to make your business model more sustainable with more profits. Therefore, creating a remarkable brand for your reselling jewelry will be the best choice. By creating your own brand, you will creat brand awareness of your jewelry resale business and retain more loyalty of your clients in the long term.
If possible, consider about designing your own jewelry and outsourcing the production works to jewelry manufacturers when the reselling jewelry stock business has been doing well. With your own jewelry design, you can guarantee even higher profits without fierece competitions in the market. It is also beneficial to attract more fans of your own brand and turn them to be long term customers and even help you spread the words and reputation of your brand and business.
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