When browsing through online jewelry stores, do you ever ask yourself where these businesses source its merchandise from? Most likely, a large number of them are dropshipping their products. If you’re interested in selling jewelry online,dropshipping jewelry is a best way to start your business.Dropshipping has become an increasingly popular way of starting an online business, as it allows you to sell products without holding any inventory.
Jewelry is a great product to sell through dropshipping because it has a high perceived value, is easy to ship, and has a wide appeal.The jewelry industry has been growing rapidly in recent years, driven by several factors such as an increase in disposable income, changing consumer preferences, and the growing popularity of online shopping. According to a report by McKinsey, the global jewelry market was valued at around $316 billion in 2019 and is projected to grow at a compound annual growth rate of 5-6% over the next five years.
One of the key trends driving the growth of the jewelry industry is the increasing demand for personalized and customized jewelry. Consumers are looking for unique and meaningful pieces of jewelry that reflect their personal style and values. This trend has led to the rise of online retailers that offer customized jewelry, allowing customers to choose the materials, design, and even engraving on their jewelry.
Another factor contributing to the growth of the jewelry industry is the growing interest in sustainable and ethical jewelry. Consumers are becoming more aware of the environmental and social impact of their purchases and are looking for jewelry that is produced in a responsible and ethical way. This has led to the rise of sustainable jewelry brands that use eco-friendly materials and ethical sourcing practices.
Overall, the jewelry industry is poised for continued growth in the coming years, driven by changing consumer preferences and the growing popularity of online shopping.In this blog post, we will provide you with a step-by-step guide on how to get started dropshipping jewelry.
If you’ve thought about starting your own ecommerce store, you may be wondering how you’ll get access to an inventory of products, or where you’ll store them.
Under the traditional business model, retailers are responsible for the order fulfillment process from start to finish. That often means leasing warehouse space for products, handling supply chain and inventory management, and managing shipping costs.
However, there’s an alternative business model for fulfilling customer orders placed through an online store: dropshipping.
What is dropshipping?
Dropshipping is an order fulfillment method where a business doesn’t keep the products it sells in stock. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory—they act as the middleman.
Now that you understand the players involved, let’s take a look at how a dropshipped order gets processed.
To illustrate, we’ll follow an order placed with our theoretical store, Phone Outlet, an online merchant that specializes in accessories for smartphones. Phone Outlet dropships all of its products directly from a wholesaler fulfillment center, which we’ll call Wholesale Accessories.
Here’s a sample of how the entire ordering process might look:
- Step 1: Customer places order with Phone Outlet
Mr. Allen needs a case for his new smartphone and places an order via Phone Outlet’s online store. Once the order is approved, a few things happen:
1.Phone Outlet and Mr. Allen will get an email confirmation (likely identical) of the new order, which is automatically generated by the store software.
2.Mr. Allen’s payment is captured during the checkout process and will be automatically deposited into Phone Outlet’s bank account.
- Step 2: Phone Outlet places the order with its supplier
This step is usually as simple as Phone Outlet forwarding the email order confirmation to a sales representative at Wholesale Accessories. Wholesale Accessories has Phone Outlet’s credit card on file and will bill it for the wholesale price of the goods, including any shipping or processing fees.
Note: Some sophisticated fulfillment centers will support automatic XML (a common format for inventory files) order uploading or the ability to place the order manually online, but email is the most common way to place orders with dropshipping suppliers because it’s universal and easy to use.
- Step 3: Wholesale Accessories ships the order
Assuming the item is in stock and the wholesaler was able to successfully charge Phone Outlet’s card, Wholesale Accessories will box up the order and ship it directly to the customer. Though the shipment comes from Wholesale Accessories, Phone Outlet’s name and address will appear on the return address label and its logo will appear on the invoice and packing slip.
Once the shipment has been finalized, Wholesale Accessories will email an invoice and a tracking number to Phone Outlet.
Note: The turnaround time on dropshipped orders is often faster than you’d think. Most quality suppliers will be able to get an order out the door in a few hours, allowing merchants to advertise same-day shipping even when they are using a dropshipping supplier.
- Step 4: Phone Outlet alerts the customer of shipment
Once the tracking number is received, Phone Outlet will send the tracking information to the customer, likely using an email interface that’s built into the online store interface. With the order shipped, the payment collected and the customer notified, the order fulfillment process is complete.
Phone Outlet’s profit (or loss) is the difference between what it charged Mr. Allen and what it paid Wholesale Accessories.
What is a dropshipper?
A dropshipper is a person or business that uses the dropshipping model of buying inventory and fulfillment logistics from a third party, instead of warehousing and shipping the products themselves.
Because dropshipping relies on a third-party supplier to handle inventory warehousing and order fulfillment, a dropshipping operation may be managed by dozens of employees or a single business owner.
How does dropshipping work in the jewelry industry?
The dropshipping process is essentially a relationship between a customer-facing store and a supplier.
Dropshipping is an order-fulfillment method that lets store owners sell directly to consumers without stocking any inventory. When a customer purchases a product from a dropshipping store, a third-party supplier ships it directly to them. The customer pays the retail price you set, you pay the suppliers’ wholesale price, and the rest is profit. You never have to handle products or invest in inventory.
There are two common approaches to adopting a dropshipping business model. The first is to seek out one or more wholesale suppliers located in North America (or anywhere else in the world) on your own using a supplier database. Examples of popular online supplier databases include AliExpress, SaleHoo, and Worldwide Brands.
If you’re not interested in finding suppliers for all of the products you plan to sell, you can use an app that connects you and your store to thousands of suppliers. For this, we recommend DSers, a Shopify app that helps independent business owners find products to sell.
With DSers, you can browse AliExpress and import the products that pique your interest directly to DSers—which is connected to your Shopify store—with the click of a button. Once a customer buys a product, you’ll be able to fulfill their order in the DSers app.
Fortunately, DSers automates most of the dropshipping process. As the store owner, all you have to do is check that the details are correct and click the order button. The product is then shipped directly from the AliExpress supplier to the customer—wherever in the world they may be.
Dropshipping is often seen as a no-hassle, get-rich-quick scheme. But it’s not. Just like any other ecommerce website, it takes dedication to get your startup running and successful. Done well, dropshipping companies can become reliable and convenient partners to growing ecommerce businesses to expedite order and fulfillment processing.
Benefits of dropshipping jewelry
Here are a few other reasons why dropshipping is such a popular ecommerce business model for both large and small businesses.
Less upfront capital required
Probably the biggest advantage to dropshipping is that it’s possible to launch an ecommerce store without having to invest thousands of dollars in inventory. Traditionally, a brick-and-mortar or ecommerce retailer has to tie up huge amounts of capital purchasing inventory.
With the dropshipping model, you don’t have to purchase a product unless you’ve already made the sale and have been paid by the customer. Without significant upfront inventory investments, it’s possible to start dropshipping and become successful with very little money.
Additionally, because you’re not committed to selling through any inventory purchased upfront, like in other business models, there’s less risk involved in starting a dropshipping store.
Easy to start
Running an ecommerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about:
- Managing or paying for a warehouse
- Packing and shipping your orders
- Tracking inventory for accounting reasons
- Handling returns and inbound shipments
- Continually ordering products and managing stock level
Because you don’t have to deal with purchasing inventory or managing fulfillment centers, your overhead expenses are quite low. In fact, many successful dropshipping stores are run as home-based businesses, requiring little more than a laptop and a few recurring expenses to operate.
As you grow, these costs will likely increase, but will still be low compared to those of traditional brick-and-mortar businesses.
With dropshipping, a successful business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and provide timely service and support that meets customer expectations, you can run and manage your business.
Wide selection of products to sell
Since you don’t have to pre-purchase the items you sell, you can offer an array of trending products to your potential customers. Plus, you can rotate or change your dropshipping products list without having to worry about unsold inventory. If suppliers stock an item, you can list it for sale on your online store at no additional cost.
Easier to test
Dropshipping is a useful fulfillment model for both launching a new store and for business owners looking to test the appetite customers have for additional product categories, e.g., accessories or wholly new product lines. The main benefit of dropshipping is, again, the ability to list and potentially sell products before committing to buying a large amount of inventory.
Easier to scale
With a traditional retail business, if you receive three times the number of orders, you’ll usually need to do three times as much work. By leveraging dropshipping suppliers, most of the work to process additional orders will be done by the suppliers, allowing you to expand with fewer growing pains and less incremental work.
Sales growth will always bring additional work—especially related to customer support—but businesses that utilize dropshipping scale particularly well relative to traditional ecommerce businesses.
Drawbacks of dropshipping jewelry
All the benefits we mentioned make dropshipping a very attractive model for anyone getting started with an online store, or for those looking to expand their existing product offerings. But like all approaches, dropshipping has its downsides, too. Generally speaking, convenience and flexibility come at a higher price.
Here are a few shortcomings to think about when considering a dropshipping business.
Low profit margins
Low margins are the biggest disadvantage to operating in a highly competitive dropshipping vertical. Because it’s so easy to get started, and because the overhead costs are so minimal, many competing businesses will set up a dropshipping store and sell items at rock-bottom prices in an attempt to grow revenue. Since they’ve invested so little in getting the business started, they can afford to operate on minuscule margins.
Typically, these sellers will have low-quality websites and poor (if any) customer service, which can help you differentiate your dropshipping business. But that won’t stop customers from comparing their prices to yours. This increase in competition will quickly hurt the potential profit margin in a niche. If you’re concerned about your margins you can quickly calculate it with Shopify’s profit margin calculator.
Fortunately, you can do a lot to mitigate this problem by choosing the right products and selecting a niche/vertical that’s well suited for dropshipping.
If you stock all your own products, it’s relatively simple to keep track of which items are in and out of stock. But when you’re sourcing from multiple warehouses, which are also fulfilling orders for other merchants, inventory can change on a daily basis.
Fortunately, these days, there are a handful of apps that let you sync with suppliers. So dropshippers can “pass along” customer orders to a dropshipping supplier with a click or two and should be able to see in real time how much inventory the supplier has.
DSers also lets merchants take automated actions when a supplier’s stock hits zero. For example, when a product is no longer available, you can automatically unpublish the product, or keep it published but automatically set the quantity to zero.
If you work with multiple suppliers—as most dropshippers do—the products on your online store will be sourced through a number of different dropshippers. This means you have no control over the supply chain.
Let’s say a customer places an order for three items, all of which are available only from separate suppliers. You’ll incur three separate shipping charges for sending each item to the customer, but it’s probably not wise to pass this charge along to the customer. And even when it does make sense to include these charges, automating these drop shipment calculations can be difficult.
Have you ever been blamed for something that wasn’t your fault but had to accept responsibility for anyway?
Even the best dropshipping suppliers make mistakes fulfilling orders—mistakes for which you have to take responsibility and apologize. In addition, mediocre and low-quality suppliers will harm the customer experience via missing items, botched drop shipments, and packing or product quality issues, which can damage your business’s reputation.
Limited customization and branding
Unlike custom-made products or print on demand, dropshipping doesn’t give you a lot of control over the product itself. Usually, the product dropshipped is designed and branded by the supplier.
Some dropshipping suppliers can accommodate your business’s product changes. Even then, however, the supplier has the most control over the product itself. Any changes or additions to the product usually require a minimum order quantity to make it viable and affordable for the manufacturer.
How to start dropshipping jewelry
Starting a dropshipping business in the jewelry industry can be a great way to enter the market without the need for a large upfront investment in inventory. Here are the steps you can follow to start a dropshipping business in the jewelry industry:
Choose a niche
The first step in dropshipping jewelry is to choose a niche. There are many different types of jewelry, such as necklaces, bracelets, earrings, and rings. You can further narrow down your niche by focusing on a specific style of jewelry, such as vintage or bohemian, or by targeting a specific audience, such as men or women.
When choosing a niche, it’s important to consider the demand for that type of jewelry, as well as the level of competition. You can use tools like Google Trends and Amazon Best Sellers to get an idea of what’s popular and what’s not.
Find a supplier
Once you have chosen your niche, the next step is to find a supplier. There are many different dropshipping suppliers that specialize in jewelry, such as Oberlo, AliExpress, and SaleHoo. These suppliers offer a wide range of jewelry products at competitive prices.
When choosing a supplier, it’s important to consider the quality of the products, the shipping times, and the level of customer support. You can read reviews and ratings from other dropshippers to get an idea of what to expect.
Set up your online store
The next step is to set up your online store. You can use platforms like Shopify, WooCommerce, or Magento to create your store. These platforms offer a wide range of templates and plugins that make it easy to customize your store.
When setting up your store, it’s important to choose a domain name that is easy to remember and reflects your niche. You should also create a professional-looking logo and choose a theme that matches your brand.
Import products and create product listings
Once your store is set up, the next step is to import products from your supplier and create product listings. You can use a tool like Oberlo or AliExpress to import products into your store automatically.
When creating product listings, it’s important to include high-quality images and detailed descriptions. You should also include information about the materials used, the dimensions, and any other relevant details.
Set up payment and shipping options
The next step is to set up payment and shipping options. You can use payment gateways like PayPal, Stripe, or Shopify Payments to accept payments from your customers.
When setting up shipping options, it’s important to consider the shipping times and costs. You should also choose a reliable shipping carrier that offers tracking and insurance.
Market your store
The final step is to market your store. There are many different ways to market your dropshipping store, such as social media marketing, influencer marketing, and email marketing.
When marketing your store, it’s important to target the right audience and use the right messaging. You should also monitor your marketing campaigns and adjust them as needed.
Dropshipping jewelry is a great way to start an online business without holding any inventory. By choosing a niche, finding a supplier, setting up your online store, importing products, setting up payment and shipping options, and marketing your store, you can create a successful dropshipping business that sells beautiful and high-quality jewelry products.
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How to be a successful dropshipper
Inspired and ready to become an ecommerce entrepreneur yourself? Here are six key elements you’ll want to master to become a successful dropshipper.
Having a solid plan for how you can add value for your customers is the most crucial success factor. This is important for all businesses, but much more so in the world of dropshipping, where you’ll be competing with legions of other “me too” shops carrying similar products.
With dropshipping, it’s easy to think you’re selling customers a product. But successful small merchants understand that it’s not only the product they offer—they’re selling insights, information,and solutions. You think you’re an ecommerce merchant, but you’re also in the information business.
So how are you going to add value and help solve problems for your customers? If you’re unsure, spend some time reading about dropshipping niches to understand the best ones in depth. If you’re struggling to answer this question for a given niche, you may want to consider picking a different market.
If you’re not able to add value through quality information and guidance, the only thing you’re left to compete on is pricing. While this has been a successful strategy for Walmart, it’s not going to help you build a successful dropshipping business.
Focus on marketing and SEO
Coming in a close second to adding value as a key success factor is being able to drive traffic to your new site. The #1 problem and frustration new ecommerce merchants face is a lack of traffic to their websites. Too many merchants slave away for months on the perfect site only to launch it to a world that has no idea it exists.
Marketing and driving traffic are absolutely essential to the success of your business and are difficult to outsource well, especially if you have a small budget and are bootstrapping your business. You need to take the personal initiative to develop your own SEO, marketing, outreach, and guest-posting skills.
This is particularly crucial during the first six to 12 months, when no one knows who you are. Following your site launch, you need to dedicate at least 75% of your time on marketing, SEO, and traffic generation for at least four to six months—that’s right, four to six months. Once you’ve established a solid marketing foundation, you can scale back and coast a bit on the work you put in. But early on, it’s impossible to place too much emphasis on marketing.
If you’re not a marketing or SEO expert yet, the following resources and blogs are a great way to get started:
- SEO resources
Seach Engine Land. An extremely prolific SEO blog, with dozens of new posts each day.
SEOBook. A popular SEO blog and the home of a paid private community for SEO professionals.
- Marketing resources
HubSpot blog. Advice on everything inbound-marketing related, from driving traffic with email to social media tips.
Seth Godin’s blog. Solid high-level advice on marketing and building an audience.
Copyblogger. Content marketing tips with an emphasis on writing effective, compelling copywriting.
Mixergy. Interviews with successful entrepreneurs in the technology and online fields. Not focused exclusively on marketing, but lots of applicable information for aspiring entrepreneurs, including marketing and early-stage advice.
- Ecommerce marketing resources
Shopify blog. A comprehensive ecommerce blog with frequent posts on how to effectively promote and market your online store.
EcommerceFuel. Tips from an active ecommerce entrepreneur on how to found, grow, and market online stores. Written specifically for individual store owners and smaller stores.
Almost every successful dropshipping store we encounter has one thing in common: it specializes in a certain product or niche. The more that stores specialize, the more successful they tend to be.
You don’t want to just sell backpacks. You want to sell backpacks designed for around-the-world travelers obsessed with lightweight gear. You don’t want to just sell security camera equipment. You want to focus on security systems for gas stations.
Many think narrowing their focus limits their potential customer base and will cost them sales. Just the opposite is true. Specializing allows you to communicate more effectively with your customers, stand out more easily from the competition, and compete against a smaller field. Specializing is rarely a bad move to make in a dropshipping venture.
If you’re launching a store in a new niche you probably won’t know what segment of your customers to focus on, and that’s OK. But as you gain experience with your customers you should identify the segment that’s the most profitable and that allows you to add the most value. Then, try positioning your business to focus exclusively on those customers’ needs and problems. You’ll be amazed at how your conversion rates skyrocket, even if you’re charging a premium price.
Remember: if everyone is your customer, then no one is. Specialization makes it easier to differentiate yourself, charge a premium price, and concentrate your marketing efforts more effectively.
Have a long-term perspective
Building a dropshipping business is like building anything else of value: it takes a significant level of commitment and investment over time. Yet for some reason people assume they can build a passive six-figure income with dropshipping after a few months of part-time effort. That’s just not the way it works.
It will realistically take at least a year to build a business that generates an average full-time income.
It’s also important to understand that the first few months are the most difficult. You’ll struggle with doubts, run into issues with your website, and likely have an underwhelming website launch that generates zero sales. Understand that this is normal. Rome wasn’t built in a day, and neither were any successful dropshipping businesses.
If you mentally prepare for a challenging beginning and don’t expect to get rich overnight, you’ll be much more likely to stick with your business until it becomes a success.
Offer outstanding service
The Internet has always been a fairly transparent place, but the recent rise of social media has made your business reputation even more important to your success online. If you don’t treat your customers well, they’ll often let the entire world know—including many potential customers.
The biggest customer service risk for dropshipping merchants is having tunnel vision on per-order profits and losses when fulfillment issues go awry. As discussed in our Amazon dropshipping guide, it’s critical to accept that dropshipping can get messy, that you’ll be paying to clean up some messes, and that you shouldn’t always try to pass those messes on to your customer. If you aren’t occasionally losing money on individual orders to make customers happy, you’re probably not providing very good service.
Having happy customers is the best form of marketing. As is true in all businesses, it’s much easier to make a sale to a satisfied customer than to try to convince a new prospect to buy. If you treat your customers exceptionally well, they’re likely to spread the word and refer others your way. With top-notch service, you can build a business where repeat customers generate much of your revenue.
Making customer service a priority sets your dropshipping business up for success, so ensure it’s a priority from the outset.
Don’t get hung up on the details
Don’t focus too much on the details. Your company name, logo, theme, or email marketing service aren’t going to determine your success.
What makes a business successful are the things we just talked about: adding value, marketing, outstanding customer service, specializing, and a long-term commitment. Still, new merchants will spend weeks, sometimes months, struggling to make a decision between two shopping carts or providers. That’s valuable time better spent developing the core aspects of the business.
Do your research and make an informed decision, but don’t let small decisions paralyze you.
The most important step to successful dropshipping
The most important step—the one that most people never take—is to actually get started building your ecommerce business. This is the hardest thing for most people, usually due to fear and uncertainty.
It’s a common misconception that successful entrepreneurs have a rock-solid certainty about their business at the outset. When you dig a little deeper, you’ll find that most had fears and reservations about how things would turn out. Yet they moved forward with their plan despite these doubts.
If you’re serious about building your own dropshipping business, you’ll need to do the same. Do your research, evaluate your options, and then move forward with that information in spite of your fears and reservations. It’s what entrepreneurs do. Start now.
What are the best dropshipping jewelry suppliers?
It can be hard to know where to start when thinking about starting a dropshipping business. Simply finding a dropshipping website that suits your needs can be overwhelming. There are a multitude of reasons why a dropshipping supplier could be the best option for you.
To take some of the stress out of this research process we’ve put together a list of the 9 best dropshipping website/suppliers we’ve come across in 2023. We’ll give you a brief overview of the important information and a snapshot of their look and feel.
When it comes to variety of products, few dropshipping companies can compete with AliExpress. The online retail service, which launched in 2010, features more than 100 million products, meaning it’s likely that no matter what business you’re in, you’ll find something to sell.
If you plan on dropshipping with AliExpress, the best option to use in your Shopify store is the DSers app. Under its free plan, the DSers-AliExpress Dropshipping plug-in allows you to explore AliExpress’s enormous collection of products and add them to your store in just a few clicks.
Under its Advanced plan—which is still less costly than the alternatives—you’ll get access to automation features that pull new orders from your store, ship products to your customers, and mark orders as fulfilled—all without you having to lift a finger.
Price: Plans start at $0 for 3,000 products, but we recommend the Advanced plan ($19.90/month), which includes automation features.
Advantages: Large product variety, low cost, and easy to sync with your Shopify store.
Disadvantages: AliExpress is one of the most commonly used dropshippers, so your products will be available at other retailers.
Recommended for: New merchants with a lower budget whose strengths lie in building a brand through the curation of products.
Shopify App: Yes.
Spocket is an order fulfillment service with a wide range of wholesale merchants based mostly in the United States and Europe, but it also has merchants based in Canada, Asia, Australia, Brazil, and other countries.
With the Spocket plug-in, you can browse merchants’ products and add them to your Shopify store in one click. Spocket also automates the entire order process, with products shipped to your customers at the point of purchase.
One of the biggest highlights of Spocket is its branded invoice feature, which allows you to create a custom invoice for your brand that’s shipped alongside your products. Branded packaging can go a long way in building brand awareness and acquiring repeat customers.
Price: Plans start at $24.99/month for 25 products, after a trial period.
Advantages: Spocket includes branded invoices that keep your business at the forefront of your customer’s minds, which is great for customer retention.
Disadvantages: Spocket can be quite pricey. It’s brand invoices are only available on the Pro plan, which offers fewer products at a higher price than alternative dropshipping apps.
Recommended for: Merchants with a bit of startup funding, who place high value on the ability to brand their own products.
Shopify App: Yes.
Established in 1999, Worldwide Brands is one of the oldest and most trusted supplier directories among veteran retailers. Dropshippers on Worldwide Brands must meet a set of criteria and established guidelines that helps ensure high-quality wholesalers.
Like Wholesale Central, Worldwide Brands is a directory of suppliers and dropshippers open to working with new retailers. While it might not offer much automation, it does include more than 16 million certified wholesalers, a wide range of wholesale products, and a dedicated list of certified dropshippers, if you’re looking for dropshippers specifically.
Price: One-time payment of $197.
Advantages: Worldwide Brands has a strict set of criteria its dropshipper must meet, so it’s a great resource for finding reliable suppliers of all types of high-quality products.
Disadvantages: Worldwide Brands does not offer any automation tools or an order management system, so syncing your inventory can be a hassle.
Recommended for: Store owners looking for trusted suppliers to partner with.
Shopify App: No.
Richard Cannon Jewelry
Richard Cannon Jewelry, or RC Jewelry, has a dropshipping program in addition to its main retail arm. It costs $29.99 per month to be a dropshipping affiliate, but there are no minimum order thresholds. The company specializes in fine jewelry, including items made with gold, silver, and diamonds.
Pierce Body focuses on the specific niche of piercing-related jewelry, like earrings, nose rings, navel rings, and studs. You can purchase these items at wholesale rates with a $200 order minimum.
Estonia-based Brands Gateway focuses on high fashion but offers many items for jewelry dropshippers, including cufflinks, brooches, and bracelets. Some of its partners include big-name brands like Gucci and Swarovski. You can integrate Brands Gateway with your Shopify store for rates starting at $149 per month when billed annually.
Start your dropshipping business in 2023
Whether you’re interested in finding a side hustle, starting a new full-time enterprise, or changing the business model behind your existing online store, dropshipping may be the answer you’re looking for.
Yes, dropshipping comes with a number of built-in complexities you’ll need to address. But with careful planning and consideration, you can anticipate and resolve those issues to create a thriving, profitable dropshipping business.