Should you buy in bulk or rely on dropshipping? Learn the pros and cons of these two jewelry sourcing options.
If you are considering starting an online jewelry business, it is important to know how you are going to source your jewelry pieces unless you are handcrafting them.
Today, there are two ways for sourcing jewelry -- by buying wholesale fashion jewelry pieces or by a dropship program.
Buying wholesale jewelry means that you will be purchasing jewelry in bulk or large quantities from a wholesaler, which is the traditional way of conducting a jewelry business.
On the other hand, dropshipping jewelry means you will be partnering with a jewelry supplier who will handle packaging, storage, and the shipping of jewelry orders. You as a business will take care of managing the marketing aspects, including website management and customer service.
But what do you think is the perfect jewelry sourcing process for your business? Today, we discuss the pros and cons of these two to help you determine which one is the best fit for your jewelry business.
Buying Wholesale Jewelry Pros:
1. You control the quality of each piece of jewelry. You can check each item and examine them before shipping it out to your customer.
2. You control shipping times and offer a one-day shipping promo to your customers -- which are extra points as a starting jewelry business.
3. You can pack up orders with the packaging of your choice and add branding to them.
4. Storage costs are minimal because jewelry pieces are small, compared to other items that need to be stored in your basement or garage or rent a storage or warehouse space.
Buying Wholesale Jewelry Cons:
1. Buying wholesale is expensive because you need to buy jewelry pieces in bulk in one transaction.
2. You need to set aside space for your inventory and invest in quality jewelry storage containers to keep them safe from damage or getting lost.
3. You are responsible for packing and shipping orders, which may take a huge chunk of your time as a business owner.
4. Having excess inventory items is unavoidable, and you might be stuck with many slow-moving items that just won’t get sold.
If you think the cons of buying wholesale weigh more than the pros for your business, you might consider dropshipping jewelry instead:
Dropshipping Jewelry Pros:
1. Dropshipping does not require you to cash out a considerable amount of money, as does wholesale, which requires you to purchase in bulk.
2. There is no need to worry about setting up space for your inventory and keeping the jewelry safe from damage or theft.
3. Packaging and shipping orders will be the responsibility of your jewelry supplier.
Dropshipping Jewelry Cons:
1. You totally have no control over the shipping process and therefore cannot offer one-day shipping perks to your customers. Items may also take a long time to get to the customers.
2. You cannot check the quality of the jewelry pieces, whether they are in good condition or have slight damages.
3. Handling customer complaints might be challenging because you are not in charge of the packaging, shipping, and returns of orders. Referring customers to your supplier might deem you as an irresponsible business by buyers.
Both jewelry sourcing options have their own fair share of pros and cons. But it all comes down to your capabilities as a jewelry business.
Suppose you think you are comfortable with spending a huge amount of money in one transaction and are very particular about the quality of the jewelry. In that case, wholesale is the way to go. Hire people to do the packing and shipping if you do not have the luxury of time.
On the other hand, if you cannot afford to buy jewelry pieces in bulk, dropshipping is the way to go. All the work will be done by your supplier. Make sure to get a trusted jewelry supplier to avoid having problems When it comes to customer concerns regarding the quality of the items, packaging, and shipping.
Are there jewelry suppliers that offer both sourcing processes?
Many jewelry suppliers now offer both wholesale and dropshipping programs. CeriJewelry.com, for one, offers these two and makes sure to provide jewelry businesses with wholesale fashion jewelry items that are high-quality at affordable costs.
Decisions such as this require time to think them through. It always helps to ask for advice from colleagues and other business owners who have experienced the two jewelry sourcing processes.
But for starting online jewelry businesses that may still have a low budget, consider dropshipping first. If you are established enough and capable of hiring more people to do tasks like packing and shipping, you can then shift to buying your jewelry inventory in bulk.