Increase Your Jewelry Business ROI
The jewelry industry is among the most profitable ones, both offline and online. Yet, the playing field has been changing rapidly in the past few years.
Jewelry sellers are forced to look for better, more strategic ways to increase their ROI, which is getting increasingly harder. With new players in the game, new technologies, and even more shifting trends, it takes a lot of time and investment to make a profit nowadays.
Nevertheless, we have some tips that can help you minimize your losses and increase your ROI. These include scaling your jewelry business using the latest trends, developing an analytics strategy, and automating your operations through the use of digital tools.
1. Jewelry Business Trends
Jumping into eCommerce with the understanding that it is an extension of your brick-and-mortar jewelry store, and not a side operation, is only the beginning. To make the most out of the opportunities available to you online, as a jewelry seller, you must adopt a multi-channel sales and marketing strategy.
We describe this more in-depth in a separate article. To summarize this idea, though, you should be taking advantage of all the marketplaces and social media channels by having them build onto each other and work together towards your business goals.
The number of marketplaces available to jewelry sellers is exploding nowadays. While Amazon, Walmart, Etsy, and eBay are still the top players, many more smaller ones are coming up on the market. Even Google has now jumped on the bandwagon with its Google Shopping platform. Social selling is also picking up the pace. Shopify has partnered with Twitter, Facebook and Instagram have long had shopping and product advertising capabilities, and 78% of sales professionals who use social media are deriving larger profits than their counterparts who don’t do so.
Another trend that is important to consider is the drive towards sustainability. This is even more prominent among young buyers, specifically Gen Z and a small percentage of Millennials. The European Union has had multiple sustainability practices embedded in its laws, particularly around packaging. However, given the new generational push, such laws are being implemented more strictly and even updated.
The latest updates to the German Packaging Act (VerpackG) is a good example of that. Millennials and Gen Z’ers are also shifting towards BNPL eCommerce. This “buy now, pay later” / installment payment method is becoming quite popular and could soon transcend into the jewelry industry.
2. Jewelry Analytics
It is no secret that data analytics and insight into consumer behavior are the key to boosting your jewelry business’ ROI. Not only are the trends above useful, but also looking at your customers’ specific demographics and how they spend their discretionary income can come in handy when planning your growth strategy. You can learn which marketing channel(s) to focus most of your effort and budget on, which products are best sellers, which could be quick sellers, and what incentives or promotions work best.
Data is the key behind successful decision-making. It reduces risk, optimizes resource use, and allows for monitoring and tracking of results. It has been proven that companies basing their decisions on data are 19 times more profitable than those that don’t do so. On top of that, having a solid growth strategy, based on quantifiable information, would also help in getting more investors to join your efforts and support your goals.
3. Jewelry Operations
Lastly, an important aspect of growing your ROI is reducing operational costs. This is most quickly achieved through digital tasks automation. It is also one of the major cornerstones of the success of Valigara Online Jewelry Manager. Valigara allows jewelry sellers to do more in less time, including posting or updating all jewelry listings on all online platforms with only a few clicks, centralizing logistics, launching an online store, dropshipping, integrating with various software, and much more. We have helped jewelry businesses achieve ROIs between 370% and 6000%, within only a few business cycles.
On top of that, you may also want to consider the rapid advancement in technological innovations which can further improve your operations. The current jewelry eCommerce landscape has been rapidly growing, both financially and reach-wise, due to digital technologies such as artificial intelligence (AI), augmented/virtual reality (AR/VR), as-a-service (aaS) products (e.g. SaaS-software, DaaS-data, PaaS-platform, etc.), 3D printing, cryptocurrency, and more.
These have facilitated business operations through automation, augmentation, synchronization, integrations, analytics, and many other processes. Businesses are more digitized than ever, a trend boosted by the 2020 pandemic which will not stop any time soon. For example, Pinterest just recently purchased THE YES, an AI-driven shopping platform for fashion items. This tool allows buyers to shop a personalized feed based on their inputs on brand, style, and size.
As you can see, while increasing your jewelry business ROI may be difficult given the current times, it is also well within your reach. By following the strategies listed above, you’ll be able to set yourself up for continuous, exponential success and growth.