The jewelry industry might have taken a slight hit in 2020 but the forecast is looking good for 2021, with a predicted increase of 0.72% in online sales. This trend is expected to continue over the next few years, in spite of the continuing pandemic. What’s more, with so many jewelry businesses online, we now know exactly what works and what doesn’t when it comes to being profitable.
The four key areas that all successful jewelry sellers focus on are marketing, sales, product, and brand. We will explore how these look like for a 30-50K online jewelry business. But before we get there, let’s look at how to reach four figures in sales first, using the four areas mentioned above. Only once those strategies are well-established, you can move on to making five figures.
Four-Figure Jewelry Business Strategies
Your artistic or crafty skills are not going to make you money by themselves. Having a solid marketing strategy is essential for the success of any business. The two most basic strategies to implement in this area are:
- Build an email list and send regular newsletters – these can include actual news and/or other tips and resources related to your business or the jewelry industry in general
- Attend a few shows, trade fairs, and relevant events per year – face-to-face interactions are still important for marketing; showing a person behind the brand increases trust and brand loyalty
Business success is directly correlated with sales growth. If your business isn’t making money then you don’t have a business but an expensive hobby. Two important strategies stand out in the world of jewelry for increasing sales:
- Going online – jewelry sellers can no longer afford to ignore not only the potential but also the necessity of eCommerce. You either create a hybrid business model (offline + online) or move to an exclusively online model (e.g. dropshipping).
- Offering custom/commission items for higher prices – these can both boost your sales and increase your client lifetime value (CLV) through repeat purchases, not to mention the large possibility for referrals as well
Quality isn’t the only factor that matters when it comes to your products. Here are the other two:
- Large selection – customers like options, even if they only end up buying one product. A small selection may make you look inexperienced, and this is important if your goal is to reach four figures in your business.
- USP (unique selling proposition) – your products have to distinguish themselves from what’s already on the market. One way to achieve this is by establishing a signature style that is consistent throughout most of your offers.
Building a brand image is not some sound bite from a Marketing 101 university course. Brands inspire trust and give customers a sense of self-expression. They are associated with haute couture and statement-making fashion. It would be a major opportunity cost to not create your own brand. Here are two points to keep in mind when doing so:
- Be professional – everything matters, including logo, font, colors, packaging, etc.
- Stand by one or two main values – a few examples are sustainability, premium product, diversity, empowerment, etc.
Now let’s look at how to take your jewelry business to the next level.
Five-Figure Jewelry Business Strategies
You will need to focus on the same four categories as above (marketing, sales, product, and brand) but include new methods of increasing their impact. Here they are.
- Build a dedicated social media following/community through effective, optimized content
- Create strategic partnerships, such as exclusive wholesalers, media (press, television, radio, magazines), podcasts, guest posts, etc.
- Begin outsourcing – packaging, part of manufacturing, administrative tasks, customer services; these will not only help you provide better services but also free up some of your time to focus on new growth avenues.
- Use a multi-channel online approach – be present on multiple online marketplaces in addition to your website and affiliate channels (e.g. affiliates, influencers, etc.).
- Higher ticket options – a large selection but average prices can only take you so far. Offering high-value, luxury items is important if you are trying to reach five figures in your jewelry business.
- Planned product strategy – design and plan out launches for new products months in advance based on your customer segments and prior feedback
- Have regular photoshoots of your products and brand, with and without models (for both pictures and videos)
- Build your reputation through impeccable customer services and partnerships with fashion icons or big-name brands that offer products/services related to your niche
Have you heard Zig Ziglar’s advice, “if you aim at nothing, you will hit it every time”? This applies to growing your business too. You can’t simply run your business as usual and expect your sales to grow without a plan. But if you make it a point to work on the strategies mentioned above, you’ll have better chances of hitting those target numbers.