5 Things You Must Avoid Before Starting Wholesale Jewelry Business

The wholesale jewelry business is indeed profitable, with market size of approximately $324 billion, according to Statista. The lucrativeness and potential of this business attract many wholesalers to step into this industry. However, most wholesale jewelry companies fail to meet their sales target and fail within the first five years of startup. 

Why does this happen?

There can be a lot of factors involved in the failure of a wholesale jewelry business, such as the absence of new technology or the use of new business tools. 

Here, we shall discuss the list of common mistakes that new wholesale jewelry businesses make. If you want to establish a long-lasting wholesale jewelry company, then you should avoid these mistakes. 

Let’s check the list of five things that you must avoid before starting a wholesale jewelry business below:

1. Insufficient Market Research 

One of the most common and biggest mistakes that new wholesalers make involves insufficient market research. You should know about the following before starting a wholesale jewelry business:

• Market trends
• Trustworthy suppliers
• Manufacturers/ wholesalers dealing with jewelry
• Competitors
• Marketing strategies
• Pricing
• Market fluctuations and how to deal with them
• Latest jewelry style and fashion trends

If you do not have adequate knowledge about the market, you may face more risks and chances of failure in your wholesale jewelry business. 

2. Focusing on Price Rather than the Service

Many wholesale jewelry businesses make the mistake of selecting the wrong suppliers for their business. A reliable wholesale supplier is crucial for the smooth running of your business. You need to ensure that you choose wholesale jewelry suppliers with a good reputation in the market. 

Also, many wholesalers focus on low prices rather than the supplier’s quality of products or services. Avoiding this mistake will certainly save you from future business troubles and losses. Besides, you do not want to risk losing your customers by providing low-quality products or delays in delivery. 

3. Ignoring B2B/ E-Commerce Sales

A significant rise in online purchases/ sales has been seen after the outbreak of the pandemic. Many online wholesale businesses are running successfully without a brick or mortar store. You should also benefit from the online wholesale marketplaces and social networking platforms to sell your jewelry products.

Remember, customers trust and acknowledge the authenticity of businesses that have a business website. You should also avoid the mistake of starting a wholesale jewelry business without an online presence. 

4. Failure to Identify Target Audience 

Another most important thing that you should avoid is the failure to identify your target customers. You may start your wholesale business without defining your target clients, but you may fail to meet your sales target. 

A good wholesaler should know about the requirements and preferences of their target customers. You can establish a profitable wholesale jewelry business by avoiding this mistake. 

5. Forget to Build Business Relationship

Last but not least, one of the most common mistakes made by new wholesalers is that they fail to build business relationships. 

If you want to make your place in the wholesale jewelry market, then you must build healthy business relationships with other wholesalers, manufacturers, retailers, and distributors or click here to get to the top wholesalers in the jewelry market.

Business relationships can immensely benefit your     wholesale jewelry business. You can learn about new business tools and technologies, reliable suppliers, potential customers, effective marketing strategies, and the latest jewelry trends. So, avoid the mistake of ignoring the importance of healthy business relationships.

Bottom Line

Starting a wholesale jewelry business is not that difficult; however, establishing a long-lasting wholesale company can be quite challenging. Many wholesale businesses start with insufficient information or market research. As a result, such businesses may fail within a few years of their startup. 

The good news is that you can run your business smoothly for the long run just by avoiding common mistakes. We hope that the list mentioned above will help you figure out what not to do in your wholesale jewelry business.