Want to build a successful online business from your love and affection for jewellery? Well, look no further; this blog will lead you through the path of how to start an online jewellery business.
In India, people are crazy about jewellery. This is because we have ethnic and spiritual meanings for jewellery. We love to give gifts to our loved ones or wear them on occasions to stand out. So regardless of the ups and downs of eCommerce or dropshipping, starting an online artificial jewellery business is a viable low-investment business that can give you wonders.
Now, you might be hindered by a question: who buys jewellery online? People go to their nearby jewellery stores to buy necklaces or rings. Yes, there is truth to some extent, but due to digitization, people buy jewellery online. The Indian online jewellery market is estimated to reach $3.7 billion by 2025.
Current Jewellery Market in India
The online jewellery market in India is growing rapidly as more and more consumers turn to eCommerce platforms to purchase their favourite pieces. Around 20% of people in India buy jewellery online, which is expected to grow to 50% by 2026. With the convenience of online shopping and competitive pricing, many entrepreneurs are starting artificial jewellery businesses or expanding existing ones to tap into this booming market.
Some key trends driving growth in the online jewellery market in India include the rise of artificial jewellery brands, increasing consumer preference for customization and personalization options, and growing demand for affordable yet high-quality jewellery from millennial shoppers. Other factors contributing to this dynamic landscape include improvements in eCommerce infrastructure, favourable government policies supporting the industry, and growing investments by companies looking to tap into this lucrative market.
However, some potential downsides are associated with starting an online jewellery business in India. Many industry experts warn that the intense competition and rapidly changing nature of the online space can make it difficult for new players to succeed. Additionally, there are concerns about counterfeiting and unethical business practices that can undermine consumer trust and damage a brand’s reputation over time.
Despite these challenges, there is no doubt that the online jewellery market in India is a lucrative opportunity for entrepreneurs looking to capitalize on the continued growth of eCommerce in the country. Entrepreneurs can succeed in this rapidly changing landscape with careful planning, strong marketing strategies, and a commitment to delivering high-quality products and services.
Tips On How To Start a Jewelry Business Online
Identify a Market Opportunity
Before starting an online eCommerce store, you should do thorough market research, brainstorm the total addressable market (TAM), and how much market you can cater to so that your decision stays strong. In your market research, you must have a clear idea or have answers to all the questions, like how big the industry is. What is customer preference? Who are your competitors, and how big are they? What will be your USP?
Fortunately, many free tools will help you in your market research. Although one go-to tool is Google Trends, you can rely on other resources like marketresearch.com, ndp.com, etc. Moreover, you can get deep into your research (which you should) by conducting surveys.
Define Your Target Audience
Now you’ve understood your market, and you’re observing a good opportunity for an online jewellery brand, it’s time to understand your customers a little more. But, unfortunately, you cannot serve the whole market because their other brands and consumers also have different likings, which you can only sometimes fulfill.
The more you know your audience, the easier it will be to target them and build a brand. First, think about the demographics, their behaviour and beliefs (interests, hobbies, lifestyle, and shopping preferences), and pain points. This will sort you out on what to sell, where to sell, and how to sell.
If you start from a niche market and sell to specific customers, building a brand in a competitive space like jewellery is much easier. For instance, why don’t you target customers who want high-end luxury jewellery with fresh designs instead of targeting customers who want mid-range jewellery?
Build A Business Plan
A clear business model is crucial before moving into production, selling, and distribution. But unfortunately, new online sellers often need to catch up on this step in the excitement of starting an eCommerce business. Eventually, they need clarification about the purpose of their brand and everything.
In the business plan, be clear on product differentiation, total addressable market, customer’s needs, preferences, pain points, your USP, funding options, marketing strategies, supply chain, etc.
Find A Jewellery Manufacturer
Finding a manufacturer comes in the sourcing process of a supply chain, and the right manufacturer is the key to scaling your business. While sourcing a manufacturer, acknowledge your product standards, the quality you require, and how repeatedly you require them. These whats, whys, and hows must be clear while searching for a manufacturer.
There are websites like alibaba.com where you can find different manufacturers or source products from local manufacturers for mutual benefits. Pro tip: ask for samples before finalizing any manufacturer, and you must contract with multiple manufacturers in case one cannot supply. You can rely on the other.
Production And Raw Materials
The next big thing to crack is procuring raw materials for jewellery production. For making jewellery, you need chains, wires, stones, beads, etc. For that, you need a supplier to supply these raw materials. Unfortunately, certain manufacturers have their suppliers, which can cut your procurement work short if they are reliable.
Build Your Managing Team
When your business is up and running and on upward growth, eventually, you’ll require a co-founder and a managing team to scale your online jewellery business. You’ll need onboard talents to assist you in marketing, technology, and managing your online store. You would have experience and have an idea of which part you need assistance with and which part you enjoy the most and can tap into your strength.
Build Online Storefront
Now that you’ve nailed it in market research, knowing your customers, production, sourcing, and procurement, let’s gather it together and present it to customers through a website or eCommerce store. Your online website is the face of your jewellery business and plays a big role in building a brand over a while. Use an easy-to-scroll user interface and high-quality jewellery images. Present your jewellery with a brief description on the product page so that it will improve customer experience and increase conversion on your eCommerce website.
How To Market Your Online JewelleryBusiness?
Marketing is very important to spread awareness about your brand among people. Of course, you’ve got a great product, but you need to market it to people for its success. Online jewellery businesses fall in the fashion category. You can try social media marketing by running advertisements on Instagram and Facebook and influencer marketing by letting social media influencers try and promote your jewellery.
Set Realistic Sales And Distribution Targets
Initially, you might need to determine how much your product will be sold; therefore, setting exaggerated sales goals is a brainer. Next, strategically analyze the customers’ purchasing behaviour towards your brand, and set realistic sales and distribution goals. After the sales of the first batch of your jewellery, you’ll get a rough idea of how customers react towards your product, how many visitors are converting, and the ROI of your social media campaigns then set goals for further quarters.
Analyze And Adopt Changes
Critical analysis and timely adapting to changes are the fundamentals of a successful and sustainable business. This is applied in every business, online or offline, and timely adopting changes according to consumer behaviour and industry trends will help you flourish in the long run, regardless of getting early failures.
Now you have an idea of how to launch an online jewellery business and build a successful brand. But this continues, and you’ll learn much as an eCommerce seller. You’ll experience everything in real life that you’ve learned in this blog and will find new challenges, such as logistics and distribution. But don’t worry; you can resolve logistics and last-mile delivery issues by partnering with logistics aggregators like NimbusPost.
How do I start an online jewellery business from home?
Starting an online jewellery business from home is tricky and daunting because the market is competitive, and people prefer to buy offline jewellery more. But you can start a successful online jewellery brand by analyzing the market, competition, and customer behaviour.
Apply all these tips:
- Pick a niche and target market
- Conduct a thorough customer research
- Develop a business plan
- Source and procure quality raw materials
- Start manufacturing items from your home workshop
- Build an online website and showcase your items
- Develop a product line
- Set competitive prices and brand identity
- Develop a killer marketing strategy
Is the online Jewellery business profitable?
The online jewellery business is very lucrative and is a gold mine of profits. Online jewellery businesses have a 25% to 75% profit margin, making it a highly profitable business opportunity.