Guide to Working with Wholesale Jewelry

Buy jewelry items from jewelry wholesalers to build your business while saving money

By Rachel Davy, Writer/Editor

Action Steps
The best contacts and resources to help you get it done

Deal with wholesale jewelry companies to purchase quality diamond jewelry

Diamond jewelry is always in great demand, so having a selection of it on hand is a great way to increase your business profits. One good idea is to become a member of an organization where you can get to know the names of reputable jewelry distributors.

I recommend: Become a member of GemFind to access one of the largest diamond databases and appraisal tools online to find reputable dealers of wholesale diamond jewelry. Go to Diamond Wholesale Corporation to find diamond wholesale jewelry for men and women in gold, silver and platinum settings.

Purchase gold and silver from wholesale jewelry companies

Buying beautiful pieces of gold from gold jewelry wholesalers is a sure bet, since gold jewelry never really goes out of style. Many wholesale silver jewelry distributors also sell platinum, which many customers are opting to purchase these days.

I recommend: Buy gold wholesale jewelry from Richard Cannon Jewelry, which has an extensive selection of wholesale gold and diamond jewelry available for sale. Visit Sterling Reputation to find many beautiful wholesale sterling silver pieces.

Get fashion and costume jewelry from jewelry wholesalers

Make sure to have plenty of fashion and costume jewelry on hand for customers who are looking for unique or trendy jewelry items. Many companies that sell fashion and costume jewelry offer it in bulk or in lots so you can save money when purchasing.

I recommend: Buy wholesale fashion jewelry from Hannah Online. This jewelry distributor also sells wholesale sterling silver and purses if you want to expand your business to include other fashion accessories. Supply all of your fashion jewelry needs at CloseOutCostumeJewelry.com. Both of these wholesale jewelry distributors sell their products in bulk to save you money.

Helpful advice for making the most of this Guide

• •  As you grow your business, work on developing business relationships with jewelry distribution companies so that you can learn about upcoming trends and bargains, as well as get deals on your next wholesale jewelry purchases.

1. Your markup percentage: Most jewelry wholesalers suggest that retailers double the wholesale price. Some retailers charge 60% more than wholesale. Your profit margins depend on the markup you set and can vary from brand to brand.
2. Exclusivity: Wholesale fine jewelry from well-known brands or jewelry designers may be offered with exclusivity agreements that allow you to be the only retailer in your market to offer that brand.
3. Reputation: Before buying wholesale diamonds from any wholesale jeweler, make sure to check their references and connections with industry associations.

Action Steps
The best contacts and resources to help you get it done

Wholesale fashion jewelry and costume jewelry can help accessorize your boutique

Jewelry wholesalers who provide wholesale fashion jewelry often specialize in particular types of jewelry or a certain type of retailer.

I recommend: The wholesale fashion jewelry at Olympia Gold is sold to mall kiosks, jewelry stores, department stores, duty free stores and cruise lines. HannahDOnline.com is a fashion jewelry wholesaler of bracelets, necklaces, earrings and watches. Junogems sells silver and rhodium-plated wholesale jewelry to retailers.

Wholesale diamonds are a retailer's best friend

Diamonds are some of the most expensive stones consumers buy, and wholesale diamonds are some of the most profitable pieces that jewelers sell.

I recommend: TheDiamondCompany.com sells certified diamonds to manufacturers, jewelers and private individuals throughout the world. A. Fishman & Son is an importer of certified wholesale diamonds.

Go to fine jewelry wholesalers for gold, silver and colored gemstone jewelry

Wholesale fine jewelry includes pieces made from precious metals and colored gemstones as well as watches and other accessories.

I recommend: Richard Cannon Jewelry is a jewelry wholesaler specializing in gold and diamond jewelry. Alpha Imports boasts a vast selection of precious and semi-precious gems. CN Gems specializes in blue and pink sapphires. Search for more fine jewelry wholesalers at Business.com.

Find wholesale jewelry vendors in jewelry trade journals

Jewelry trade journals not only educate jewelry retailers about the industry, but also expose you to numerous wholesale jewelry sources.

I recommend: MJSA Journal, the member journal published by the Manufacturing Jewelers & Suppliers of America, has an online search function that allows you to find jewelry wholesalers for stones, metals and more.

Attend jewelry market shows to find jewelry wholesalers and independent jewelry designers

Jewelry market shows are a great place to discover independent jewelry designers, keep up on industry trends, and to bring you face to face with accessories and jewelry wholesalers.

I recommend: Check out upcoming jewelry industry events and expos at The National Jeweler Network. For upcoming gem shows, visit The Gem & Lapidary Wholesalers. Major shows where you can find jewelry wholesalers include the annual ASD/AMD Jewelry Show in Las Vegas, the North American Jewelry & Gift Show and AccessoriesTheShow.

Helpful advice for making the most of this Guide

• •  Make sure the wholesale diamonds that you buy have been through the Kimberley Process Certification Scheme to ensure that you are not purchasing conflict diamonds.
• •  Most fine jewelry wholesalers use armored truck services to deliver expensive jewelry. Ask for insurance, security and delivery details before you buy from any jewelry wholesaler.
• •  Ask big brand jewelry wholesalers if they offer co-op advertising. Many name brand jewelry wholesalers advertise in national publications and list stores that offer their brand.
• •  Always take a jeweler's loop with you to jewelry industry trade shows. This allows you to take a peek at fine gemstones and see manufacturer's imprints.
• •  Before you research wholesale diamonds, you'll need to familiarize yourself with the four C's - carat, cut, clarity and color.
• •  Buying wholesale jewelry from independent jewelry designers often means that you'll be able to offer a line exclusively in your market.

Guide to Making the Most of Wholesale Jewelry

Study fashion and marketing trends before buying or selling wholesale jewelry merchandise

By Rachel Davy, Writer/Editor

Action Steps
The best contacts and resources to help you get it done

Study marketing lists and demographics to learn what to order from a wholesale jewelry distributor

Educate yourself about projected retail sales for jewelry in your area in order to know what to purchase from gem wholesellers. After determining where your business fits in demographically, order items based on customers' need. For instance, in metropolitan areas, order more expensive items from gold and diamond jewelry distributors. In smaller communities, fashion jewelry is likely your best bet. Though these market reports can be expensive, learning this information will be invaluable to you.

I recommend: Read market research reports from Research and Markets and MarketResearch.com in order to help you make decisions about wholesale diamond jewelry and other jewelry purchases based on demographics and market research statistics.

Learn upcoming jewelry trends before ordering items from wholesale jewelry companies

Before ordering from jewelry distribution companies, find out about upcoming trends in jewelry so that your jewelry wholesale purchases will be in line with what customers are looking for from season to season.

I recommend: Study upcoming trends to decide what kinds of wholesale jewelry items to purchase at the National Jeweler Network. For more in-depth information about upcoming trends for jewelry designs, materials and stores, visit JCKonline.com.

Keep track of inventory and other wholesale jewelry business-related items with jewelry software

After purchasing such items as wholesale sterling silver and gold from silver and gold jewelry wholesalers, you're going to need to be able to keep track of orders and inventory as well as a have a way to determine how to mark up items for resale. There is jewelry software available for retail jewelry businesses to help them make these aspects of business easier to manage.

I recommend: Order Microsoft Dynamics eJewelry software from Business Commuting or Gem Program from JewelCase Network Consulting Group to help you manage the inventory, markup and other jewelry business-related needs.

Helpful advice for making the most of this Guide

• •  Reading fashion and beauty magazines is another great way to learn about upcoming trends in jewelry so that you can make the most of wholesale jewelry purchases for your business.

Action Steps
The best contacts and resources to help you get it done

Volume discount

A volume discount is a percentage off the total cost of your order given to reward you for purchasing a certain dollar or order amount. Jewelry wholesalers often offer volume discounts to their customers. Volume discounts vary from wholesaler to wholesaler, so keep that in mind when searching for jewelry wholesalers.

I recommend: Teeda-Wholesale offers volume discounts and explains in detail how its volume discounts work.

Drop-shipping

Drop-shipping is popular in the jewelry industry because it saves you, the retailer, from having to purchase a lot of stock. The way drop-shipping works is the supplier provides you with pictures and descriptions of its jewelry, then you turn around and market the jewelry as your own. When a customer purchases a piece from you, you have the drop-shipper send the piece directly to the customer so that it appears to have come from you. The drop-shipper will then charge you the jewelry wholesale price, and you charge the customer a markup price so that you make a profit.

I recommend: Circlux Corporation is a jewelry drop-shipper and has a detailed explanation of how drop-shipping works.

Markup

The markup is the price tag that customers see. Most commercial jewelers mark up the cost of their products from the wholesale price in order to make a profit.

I recommend: KAR/ House of Gems discusses the markup topic, including a formula to come up with a markup price as compared with the wholesale price.

Plated

Plated is the process in which gold or silver is bonded to an inner base of jeweler's metal and then sealed with a highly polished, tarnish-free coat.

I recommend: To learn more about the process, visit Olympia Gold.

Fracture filled

Fracture filled, also known as clarity enhanced, is a term describing fractured diamonds whose cracks have been filled with a substance to make it appear whole. Fracture-filled diamonds cannot be certified by the Gemological Institute of America, and there is a risk that these diamonds will break.

I recommend: A. Fishman & Son discusses fracture-filled diamonds and the risk you take in purchasing them.

Gemological Institute of America

The Gemological Institute of America (GIA) is set up to protect purchasers of gemstones. Its laboratory is the world's most trusted resource in identifying and grading the quality of gemstones. When purchasing loose stones from wholesalers, it is a good idea to check if the stones are GIA-certified.

I recommend: To find out more about the GIA and its laboratory, go to Gemological Institute of America.