It can be tricky buying wholesale jewelry for resale as there is a lot to consider. Here is the ultimate guide to help.
Owning a clothing boutique means you’re in the business of making your customers look and feel great. Selling them a blouse or skirt is a great start but not a complete outfit. It needs finishing touches, and, in your shop, that means jewelry.
Jewelry is essential for many reasons, other than just completing an outfit. The right piece of jewelry highlights features of the face and body. Rings highlight fingers, hands, and new manicures. Necklaces highlight the neck and chest features. Earrings highlight the face.
Your customers will have many different reasons for wearing jewelry, including:
- Artistic purposes
- Show off their personality
- Add a pop of color
- Boost self-esteem
- Sentimental reasons
As a boutique owner, it’s your job to buy various pieces of jewelry that will please your customers. You also need to make money, which means you must buy wholesale jewelry. Below is our ultimate guide for buying wholesale jewelry for resale.
Know Your Customer
To please your customers, you must understand their style. Pay attention to what your customers are already wearing. Don’t be afraid to ask your customers the types of jewelry they desire. What age group is your customer base? If your customers are middle-aged professionals, you do not want to stock pre-teen jewelry.
You are the one who creates your customer base. You do this by selling specific items. If you want to sell prom dresses, you will attract teen girls and moms. Selling women’s business suits will attract female professionals.
Attracting customers is great. Keeping them is better. Getting to know your customers and building relationships will create repeat sales.
Know Your Niche
A niche is a sub-category of a broad market. Gold jewelry is a broad market. To reach a final niche, start to narrow the market. Gold jewelry becomes 14 karat gold earrings, which can become 14 karat gold heart-shaped earrings. You can continue to niche down by designer, price, shape, and closure, and so on until you find the perfect fit.
You may want to create a spreadsheet with categories. One is jewelry style (e.g., vintage, modern, formal wear, casual, western, costume). The next category can be material (e.g., gold, silver, acrylic, fabric, leather). Other categories can include wholesale cost, profit margin, in-stock vs. on shelves, location in storage, and reorder information. Staying organized will help you stay in your niche.
Know Your Jewelry
Some customers need assistance in choosing clothing, jewelry, and accessories. They look to you, the expert, for help. You must be educated on every product you sell. Information you may want to share with customers is where the jewelry is made, the designer, cleaning tips, and the various jewelry styles that will flatter their unique features.
You can’t know your jewelry until you choose the types you want to resell. If the clothes you sell are trendy, sell trendy jewelry. If your customers are high-end, sell high-end jewelry.
Know Your Margins
Pleasing your customer is a priority, but not the top priority. You must make money to stay in business. Profit margins often reflect the health of the company. Buying wholesale jewelry for resale is the best way to boost margins.
Gross profit margins, operating profit margins, and net profit margins have unique formulas that simplify calculations.
- Gross profit margin (overall gross revenue – the cost of goods)
- Operating profit margin (operating income/revenue x 100)
- Net income profit margin (net income/revenue x 100)
Know Your Expectations of a Wholesale Supplier
The right wholesaler makes your job a lot easier. They know the trends, designers, manufacturers, and which items can make the most profit. A wholesaler keeps you from wasting time researching this important information.
Wholesale suppliers often have options to buy small batches of jewelry to try out in your boutique. Small batch ordering means you are already in the system for a quick reorder when demand exceeds supply.
Before making a final decision on a wholesale supplier, do some research. Check online reviews on their website and with the Better Business Bureau. Ask questions about their jewelry, quality, durability, and how quickly they can ship. Ask for details like size, weight, materials, coating, all of which can affect shipping costs. Run a trial test on their customer service system. Read all the fine print of their contract and policies for buyers.
The perfect wholesale supplier wants you to succeed and go above and beyond to make you happy. You are their customer.
Know Your Marketing Plan
To be successful today, you must be a master of creative marketing. Your wholesale supplier should be able to help you market jewelry to your customers. Some wholesalers can provide product photos you can use on social media or in marketing campaigns and promotions. Some can give you tips and suggestions for activities that bring in customers.
Create a marketing plan, starting with your goals and steps to reach your goals. Then focus on the following:
- Your target customer
- Getting followers on social media
- Potential community partners
- Types of events: private parties, open houses, Zoom parties, early buyers club, etc.
- Advertising: radio, newspapers, billboards, social media, etc.
- Loyalty programs
- Email marketing
- Participating in community events
- Using peak seasons for big sales
Get creative when it comes to marketing. Find out where your customers get their information. Are they on Facebook, Instagram, or Twitter? Do they read the newspaper, or do they read the headlines on Google? What are the most popular businesses in town, and how can you partner with them?
Marketing should be happening in your boutique with interior design and layout. Your shop should reflect your niche without going overboard. Use your space to market products. Have a photo booth where customers can take pictures of themselves wearing your products. Then give them a discount for posting their picture on their social media page.
Learn from the best. How are the most successful boutiques buying wholesale jewelry for resale? Find out and give them a try. Finally, have fun.