How Do Jewelry Stores Get Their Inventory?

Jewelry stores offer different products, including simple to premium pieces catering to different needs and budgets. It is crucial to understand how jewelry stores get inventory to fulfill customers' requirements. You need to analyze the different processes of sourcing raw materials and working with reliable suppliers.

What is the markup on jewelry? Jewelry stores can consider a markup of 1.5 to 3 times the original cost of the pieces. Therefore, jewelry stores need to explore different options to acquire jewelry pieces at a cost-effective rate.

Direct Buy from Jewelry Manufacturers

The easy and usual method for jewelry stores is to purchase products directly from the manufacturers. Manufacturers design and produce high-quality jewelry in bulk for retail purposes. There are small boutique artisans and larger-scale operations dealing with state-of-the-art jewelry products.

Customizable Designs and Bulk Production

Manufacturers usually produce the jewelry items in bulk for stores looking to purchase at the wholesale rate. Retail stores can get a specific collection based on seasonal demand, customers' requirements, and the latest trends.

Stores can also consider exclusive or custom-designed jewelry pieces catering to a specific occasion or demographic, such as wedding bands and engagement rings.

Brand Partnerships

Jewelry stores can collaborate with familiar jewelry brands to sell the best products to their customers. It is important for stores to consider agreements with popular brands when using their designs. This collaboration provides a steady flow for the store’s reputation while earning a handsome amount of money.

Distributors and Wholesalers

Several jewelry stores get their inventory from wholesalers or distributors. Wholesalers are entities that purchase large quantities of products from manufacturers and then sell them to different retail stores. You can build relationships with wholesalers to access different products without designing or crafting jewelry pieces by yourself.

Different Jewelry Options

Wholesalers usually have a wide range of jewelry, such as pieces crafted from gemstones and metals. Retail stores can choose the ideal styles and designs to make their inventory attractive to different preferences and requirements.

Lower Price Points

Jewelry stores can buy products from the wholesalers to ensure the competitive price. Bulk purchases are a good option to benefit from the wholesale rate and pass savings directly to potential customers.

Successful Relationships

It is necessary for jewelry stores to build relationships with reliable wholesalers. These relationships ensure favorable terms like early access, flexible payment options, and exclusive discounts on different products.

Mining Businesses and Gemstone Dealers

It is important for the jewelry inventory management system to maintain relationships with gemstone dealers and mining companies. Jewelry stores can get high-quality gemstones for their jewelry pieces. These semi-precious and precious stones own different properties, such as carat weight, purity, and color.

Direct Sourcing

Some jewelry stores have exclusive relationships with different gemstone dealers to buy premium or rare stones. The direct arrangement with gemstone suppliers or miners allows stores to receive the best pieces at the ideal price without the involvement of the middlemen.

Ethical Sourcing

Ethical sourcing has become a main concern in the jewelry industry. Several jewelry stores ensure that gemstones are sourced ethically and are conflict-free. Ethical sourcing usually involves working with certified suppliers following international standards for fair trade and environmental sustainability.

Vintage and Secondhand Jewelry Dealers

Secondhand and vintage jewelry dealers are the best source for jewelry stores looking to sell pre-owned products such as antique rings and estate jewelry. Estate liquidations, auctions, and private sellers are the main sources for these jewelry products.

Auctions and Estate Sales

It is important for jewelry stores to consider auction houses, antique jewelry dealers, and estate sales to get vintage pieces. Premium jewelry stores can consider the premium and rare products packaged in luxury jewelry packaging to resell at a good price.

Consignment Agreements

Some jewelry stores have a consignment model where different stores and individuals provide their products to sell on their behalf. The jewelry store can consider a commission for each sale while returning items in case they are unsold.

Artisans and Craftsmen

Several jewelry stores can build relationships with independent artisans, designers, and jewelers who offer handcrafted and distinctive pieces. It enables stores to provide customers with designs that evoke their emotions. This partnership is trendy for boutique jewelry stores prioritizing excellent and exclusive craftsmanship.

Local Artists

Some stores pride themselves on having the valuable products of the local artists. It supports the local community while attracting customers who prefer independent artisans’ products. These jewelry products feature valuable gemstones and metals, ensuring a distinctive selection in the competitive market.

Custom Orders

Jewelry stores consider custom orders from potential customers who want personalized pieces. It involves the designing of corporate gifts, necklaces, and engagement rings. Therefore, jewelry stores work with skillful artisans to meet the customers’ demands.

Online Marketplaces and B2B Platforms

Jewelry stores need to consider B2B platforms and online marketplaces to source the best inventory. They can focus on websites such as Etsy, Gemporia, and Alibaba to work directly with the designers and manufacturers.

How Do You Manage Inventory in POS?

It is important to manage inventory in POS to run a successful jewelry business. A point of sale (POS) system helps you track and manage inventory in real-time without facing any issues while serving customers effectively. The steps for inventory management in a POS system are mentioned below:

Product Catalog

Inventory Categories

Sock Level and Audit

Inventory Analytics and Reports

Barcode Scanning

Exchange and Return

Data Sync and Update

Inventory Forecast

What are The 4 Main Steps in Inventory Management?

The main steps for inventory management are mentioned below:

Inventory Evaluation: The first step is evaluating the current inventory of a jewelry store.

Review: It’s time to compare previous and current inventory levels.

Sales Analysis: Analyze the sales data to determine the rebuying of different products.

Retire or Repurchase Products: The last step is making a final decision to remove outdated products while bringing back the in-demand products.