5 Steps To Becoming a Wholesale Jewellery Distributor

If you are thinking of starting a business of your own, there is one market that will always have a demand. Jewellery wholesale is a thriving industry today with people becoming more fashion-conscious. You also have several channels to sell your products online and offline, which allow you to become a jewellery distributor even with a small capital investment available at your disposal.

If you are interested in pursuing this business, here are 5 steps to help you get started and set up a successful fashion jewellery wholesale business.

Step 1: Select Your Distribution Channel

There are usually two distribution channels for a jewellery retailer:

• B2B: This is when you buy from wholesalers and sell directly to other jewellery retailers. The advantage of this business model is that you get to enter long-term contracts that help you earn a larger revenue.
• B2C: This is when you purchase wholesale jewellery and then sell it directly to your customers. You have the option of selling through a brick and mortar store, an online store or even exclusively at independent events depending upon the audience that you wish to cater to.

B2B requires higher investment initially. You also need to have better storage options that let you maintain a larger inventory. For those who do not wish to make customer service central to their business and only want to be a jewellery wholesaler, this is the right choice.

However, when it comes to B2C distribution, the startup costs are much lower. You do not have to worry about storage space. Lastly, it gives you the option of taking your business completely online.

Step 2: Find Your Jewellery Niche

This is an important step if you wish to take up jewellery wholesale. To begin with, it allows you to find a target audience that is easier to cater to. You can plan all your promotional activities based on the type of jewellery that you wish to sell. For instance, if you are entering the oxidised jewellery wholesale business, the look and feel of your campaigns will change. You will also cater to a specific population. On the other hand, when it comes to precious stone jewellery, the approach is entirely different.

You will also be able to find the right vendor or jewellery distributor when you have defined the niche of your brand. If not, there is a flood of vendors available online and offline that can easily throw you off track and make it difficult to get started. That said, you can always expand and introduce new jewellery styles to your line as you move ahead in your business.

Step 3: Create a detailed inventory

Sourcing vendors is possibly the hardest part of starting your business. However, with e-commerce portals and other online resources, you can find vendors based on the convenience and the pricing that they offer. You have all types of vendors from artificial jewellery wholesale to fashion jewellery that you can choose from.

The next step is to study their catalogue in detail and pick the pieces that you wish to include in your store or as part of your offerings. The orders that you place depend upon your distribution model. In the case of B2B, you may want to create a product catalogue and place an order after you have managed to find a buyer. In the case of B2C start with a small line of products with a few pieces to understand the demand of the market in the jewellery niche that you have picked.

Once you have procured your products, create an inventory. This allows you to keep track of the products that are available. Using basic software for inventory management also keeps you informed about products that need restocking. It is a highly recommended investment for a business to reduce the workload and also avoid the costs of hiring a team to take care of it for you.

Step 4:  Prepare a Basic Business Plan

As a jewellery distributor, you also need to develop a keen sense of business. This begins with a plan that makes use of all the resources that are available to you in order to drive maximum sales. A business plan includes various aspects of the business like the investment that you can make, the different options that you have in order to generate leads and also short and long term goals for your business in terms of revenue and brand building.

When you make a business plan for a jewellery wholesaler business, it must include the following:

• A detailed summary of the products that you have in your line.
• The needs that your business is fulfilling for customers
• A sales and marketing plan
• The team that you need for your business to operate smoothly.
• The overheads involved in running your business starting with procuring products to the salary for your employees.
• A financial strategy that can help you manage the business development side without having to worry about the monthly expenses that come with the business.

Step 5: Promote Your Jewellery Business

This is undoubtedly the most important part of making your jewellery retailer business a success. Here are some things that you need to think about when you decide to start a business:

• Promotional material and branding: Create a logo for your business to begin with. Following this, make a list of marketing material like catalogues, product images and description, social media content and website content.
• The target audience: Who is most likely to buy your products? This demographic may change as your business grows. However, you need to set a target audience to begin with so that you can make the most of all your marketing campaigns.
• The promotional channels: Today, you have the option of social media, paid ads on search engines, email marketing, telemarketing and several other online options to get your business out there. Make a strategy for marketing your products. If you choose to sell online, using an existing e-commerce portal gives you access to an existing customer base as well. Understand the trends of the market and create a business plan that is ideal for the type of jewellery that you wish to sell.

With these steps to get you started, you will evolve through your journey as a jewellery distributor. Convert your startup into a successful venture by learning along the way and building a brand image that you are proud of.

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FAQs

Q. What is the best way to start an online jewellery wholesale store?

Ans. You can choose to invest in an e-commerce website of your own. However, there are several ecom platforms that give you the opportunity of setting up your own store without going through the grind of creating a website from scratch.

Q. Where can I find vendors?

Ans. The best place to look for vendors for the fashion jewellery wholesale business is online. Search engines and e-commerce platforms like Shopify are the best places to find reliable and experienced vendors.

Q. How do I price my jewellery?

Ans. The pricing of your jewellery requires some market research so that you maintain competitive prices. Make sure you calculate your overheads and distribute them across the inventory. It is advised that you take the procuring cost of your jewellery and mark it up by 1.5 to 4 times to arrive at the final price.

Q. Why is it important to select a niche and not sell all types of jewellery?

Ans. A niche helps you find the right vendors and also helps you define your brand better. This streamlines your marketing costs as well, allowing you to target a specific audience where the rate of conversion is higher.

Q. Which is better, B2B or B2C?

Ans. This depends upon the resources available to you. B2B allows you to get bulk orders and make more revenue faster. However, you need a higher investment and ample product storage space to be a B2B jewellery wholesaler. B2C, on the other hand, requires more marketing and logistics management. However, it is easier to start because you can purchase from vendors based on the orders you receive.