When done properly, selling jewellery online can be a very profitable business! But how do you build a profitable online jewellery business?
Well there are a few different elements you need to bring together in order for your business to be profitable.
Number 1: Getting the Right Traffic to your Website
One of the biggest challenges for any online business is getting traffic to your website but more importantly than that is getting the right traffic to your site. By the right traffic, I mean you are getting visitors that are actively looking for the products you are selling.
In order to do this you need to make sure that the content on your website contains the right keywords so that your website appears in relevant search results. For this you need to do keyword research and aim for long tail keywords. The reason you want to aim for long tail keywords is that they are more specific searches by people who know what they are looking for. Any visitors you get from the long tail keywords are more likely to be looking to buy rather than doing research before they buy.
Helpful Article: Simple SEO Guide for Your Online Jewellery Business
Number 2: Make it Easy to Buy
You want to make it as easy as possible for your visitors to buy from you and that means making the checkout process as easy as possible. Remove any unnecessary steps from the checkout and you also want to offer multiple payment options. Giving your customer the option to pay with PayPal or there credit card will often result in more sales as each customer has their own preference.
Another thing that you want to do is to make your website easy to navigate as the product page they might land on might not be exactly what they are looking for. Having relevant related jewellery on the product page might show an alternative that is more suited to what the customer is looking for. You also want your product categories to have a logical flow so that they can easily be navigated to, if your website is hard to use then visitors are more likely to leave and go somewhere else.
One of the biggest reasons for abandoned carts is that companies hide their shipping charges until the customer gets to the checkout page. One of the best ways to stop this from happening is to offer free tracked and insured shipping or even free standard shipping with paid options for next day delivery or tracked services. To cover the cost of free shipping, you need to factor the cost into your sale price which I will talk about in more detail below.
Number 3: Have Easy to Read T&C's and Policies
Having pages and pages of terms and conditions can be off putting, especially when your visitors can't find the information they are looking for. These are most commonly delivery info, payment options and your returns policy. My advice is to not bury these in your T&C's, instead create separate pages where your visitors can quickly and easily find the info they are looking for.
Also make sure that these pages are clear and concise, don't use over complicated terms or legal jargon as you are just going to put people off. Instead clearly lay out what your policies are for each of these different areas and be honest, if you charge for shipping then clearly say how much, if the customer has to pay for returns then clearly state that they do. By doing this, not only are you covering yourself but you also have it written down as to what your policies are incase you have a dispute of some kind. Just make sure that all your policies are legal though!
Number 4: Pricing for Profit
While getting visitors to your site and converting them to customers is a huge part of creating a successful jewellery business, it means nothing if you are not making enough profit per product to:
- Cover all of your overheads
- Put money in your pocket
There is a popular saying amongst business owners and accountants 'turnover for show, profit for a pro' and it is a very true statement. It doesn't matter if you have a £1 million turnover, if you aren't making enough profit you won't be around for very long.
When you are pricing up your jewellery you want to factor in every cost associated with buying/making the piece of jewellery and selling it and these can include:
- Total Cost of finished pieces, this can be:
- Cost of materials + labour
- Cost price if buying a finished piece
- Transaction fees (marketplace, payment processor etc)
- Taxes such as VAT
- Postage, this will include:
- Cost of postage
- Gift packaging
- Postal Packaging
- Any paper work you include such as packing slips, invoices etc
Once you have figured out all of the costs, you can accurately figure out how much you need to sell each piece for. This is most commonly done using multipliers of the cost price, such as 2x or 2.5x and looks something like this:
Cost Price x Multiplier = Sale Price
Once you have the sale price, you can then minus all of sales related costs to figure out how much profit you are making per item. You then convert this figure to a percentage of your sale price to give you your profit margin. If your profit margin for your total monthly sales covers all your monthly costs and allows you to pay yourself then you have created a profitable jewellery business!
It is worth revisiting your pricing strategy every so often to see if you can tweak the multiplier so that you can see if you can make your business even more profitable.
As you can see, it is very possible to create a profitable jewellery business. With the right planning, execution and hard work you can build a business that can become your full time source of income!
For more info on starting an online jewellery business or getting your jewellery business online then check out the following posts: