Consumers have become comfortable purchasing a range of different products over the internet, but one thing they still prefer to buy in-store is fine jewellery. Concerns over authenticity and the desire to see high value products like engagement rings and luxury watches in person have limited online fine jewellery sales in the past. But that is beginning to change.
The rise of online fine jewellery sales is one of the key growth drivers in the overall online jewellery market, which generated $185.9 million in revenue in 2020 and is expected to reach $302.2 million in 2025, reflecting a 10.2% annualised growth rate, according to a recent report by IBISWorld.
But while this growth is good news for the increasing number of pureplay fine jewellery retailers and bricks-and-mortar businesses that have launched eCommerce sites, there are still challenges ahead. The biggest one being consumer sentiment.
When consumers are feeling flush, they’re more likely to purchase discretionary items like a new necklace or pair of earrings, but when global events impact the economy and confidence drops, like in recent years, jewellery and watch retailers often feel the pinch.
Here are some key opportunities for online jewellery and watch retailers to continue growing their business no matter what’s happening in the wider market.
Address concerns around authenticity
Before tackling the problem of posting fragile items in Australia, online jewellery retailers need to figure out how to get more shoppers to click buy. Concern regarding counterfeit items remains one of the big obstacles in this category, especially for pureplay online retailers without bricks-and-mortar stores.
Businesses can address these concerns by providing no-quibbles returns and publishing verified reviews from real customers on their website. Blockchain technology could also be used to authenticate the origins of diamonds and gemstones.
Choose a trusted shipping platform
When it comes to shipping high value items like jewellery, it’s critical to work with delivery partners that offer high value single item insurance and know how to send fragile items by post. This ensures your customers will get the best possible delivery experience, and means you won’t end up wearing the cost of a pricey necklace if anything goes wrong.
As a multi-carrier shipping platform, Shippit connects with you a range of reputable couriers. It also offers Transit Protection, which allows you to insure your goods against loss or damage for up to the retail value of $10,000 AUD (subject to terms and conditions). This means you don’t need to do hours of research to identify the best courier for fragile items.
Find out how to get the best transit protection here.
Reduce the barrier to entry with BNPL
The pricepoint of fine jewellery and watches can be a deterrent for some consumers, so giving them the option of paying in instalments is a smart way to drive sales. On a side note, the original buy now pay later app, Afterpay, was literally made for the jewellery category — literally. Co-founder Nick Molner got the idea for the platform while working in his family’s jewellery business.
Tap into the booming fashion jewellery market
Online jewellery sales are split fairly evenly across fashion jewellery, fine jewellery, precious metal jewellery and watches, but the biggest chunk (by a small margin) is fashion jewellery. These products are typically made from inexpensive materials, such as non-precious metals, stones, glass, plastic, or wood, and therefore sales are less impacted by consumer sentiment.
If you’re looking to reach a bigger audience — and ready to compete with the likes of ASOS and AliExpress — try tapping into the fashion jewellery market. That way, you don’t need to worry about insurance for high value jewellery.