Currently valued at $269 billion, the global jewelry market is still projected to grow at an unprecedented rate.
In a recent report by IBISWorld, the 2022 market share of online jewelry and watches in the United States has reached $8.7 billion.
In a recent report by IBISWorld, the 2022 market share of online jewelry and watches in the United States has reached $8.7 billion.
One of the reasons driving its growth include innovations in design and technology integration.
One emerging trend includes digital smart jewelry or wearable technology, which could be used in the medical or wellness industry.
Another example would be 3D printing, which allows designers to see how their designs would look in person.
The United States is one of the biggest jewelry markets in the world with a $61.8 billion value, next only to China with a value of $111.5 billion.
The United States is one of the biggest jewelry markets in the world with a $61.8 billion value, next only to China with a value of $111.5 billion.
With such a steady demand for jewelry, it’s no surprise that many online marketplaces have sprung up in recent years.
In this article, we will take a look at the top five online marketplaces for jewelry.
Worthy Goes All In On Being a Higher-End Jewelry Marketplace ($1000+)
The first used luxury online marketplace in the world, Worthy, as a platform, considers itself a partner to jewelry sellers.
Founded by investment banker Ben De-Kalo in 2014, Worthy is a pre-owned jewelry marketplace that includes free shipping, cleaning, and third-party grading.
What sets the company apart from the typical online marketplace is that Worthy only accepts jewelry with a resale value of at least $1,000.
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What sets the company apart from the typical online marketplace is that Worthy only accepts jewelry with a resale value of at least $1,000.
A few of their recently sold pieces range show jewelry in the range of $1,000 to $11,000.
Worthy provides its sellers a free GIA grading report for the diamonds sold on the platform.
Interestingly, one of its target markets for sellers is the newly divorced who want to sell their rings.
Interestingly, one of its target markets for sellers is the newly divorced who want to sell their rings.
The selling process at Worthy begins by sending the jewelry to be sold at Worthy’s office via prepaid FedEx shipment.
The company’s team then cleans and takes pictures of the item as well as arranges for the free GIA grading report.
Once the item is ready for auction, the seller will have to set a Reserve Price or the lowest amount they are willing to sell their jewelry for.
After that, the listing is created, and interested buyers can submit their offers.
The seller gets the final sale amount minus Worthy’s commission when the auction is concluded.
The whole process usually takes around 10-14 days from beginning to finish.
Worthy, then take a commission off the final sale price.
For pieces that sold up to $5,000, it’s 18%; from $5,001 - $15,000, it’s 14%; 12% from $15,001 - $30,000; and 10% for items that sold for $30,001 up.
That's a decent commission for the marketplace!
TrueFacet Adds High-End Handbags to its Jewelry and Watches
Founded in 2013 by Tirath Kamdar and Chris Chan, TrueFacet is an online marketplace for high-end jewelry and watches.
The company was acquired in 2020, changed CEOs, and is now under new management.
One of the new changes implemented under the new management is the addition of handbags to the items they sell on the platform and a cryptocurrency checkout through BitPay.
One of the new changes implemented under the new management is the addition of handbags to the items they sell on the platform and a cryptocurrency checkout through BitPay.
Like Worthy, TrueFacet also partners with experts, like Grand Central Watch, to authenticate products on their platform.
At TrueFacet, sellers have the option to either consign or list their items on the platform.
Sellers who want to consign with TrueFacet can fill up the Consignment Request Form and wait for TrueFacet’s associates to contact them with a prepaid shipping label.
Sellers will receive a confirmation once their items arrive at the company.
From there, experts will authenticate the item and provide a free valuation that sellers can either accept or decline.
If accepted, the team at TrueFacet will take professional shots of the piece and then list it on the website.
When sold, sellers can earn up to 80% of the sale price.
When sold, sellers can earn up to 80% of the sale price.
Those who want to list their items would need to write the product descriptions and upload photos themselves.
TrueFacet’s team reviews all listings before they go live.
Another way to earn money from TrueFacet is through their trade-in program.
This is one way to get the best value for jewelry and watches and take advantage of their concierge services.
TrueFacet still makes, at minimum, a 20% commission - putting itself in the range of Amazon-type commissions.
TrueFacet still makes, at minimum, a 20% commission - putting itself in the range of Amazon-type commissions.
Etsy's $13 Billion Dollar Online Marketplace Includes Handmade Jewelry
Founded in 2005, Etsy is an online artisanal marketplace for selling and buying jewelry and other handmade goods.
Sales on the platform grew by 91% in the first six months of 2020.
In the second quarter of 2020, the online marketplace grew 125% year over year.
In the second quarter of 2020, the online marketplace grew 125% year over year.
While Etsy has more than jewelry for sale on its platform, its focus hasn’t shifted to what it initially envisioned - a global marketplace where people can connect over handmade goods.
Since its inception, Etsy has grown its reach to nearly every country around the globe.
In 2021, the company gained around $13.5 billion in gross merchandise sales.
Buyers can find a plethora of handmade jewelry on Etsy that ranges from bracelets to necklaces and rings - some of which can be customized.
As far as the popular pieces, Etsy’s Marketplace Insights: 2022 Holiday Trends says those chunky chokers, ear dressings, and vintage brooches are up, hitting 70% and 78% increase in searches year-on-year.
As far as the popular pieces, Etsy’s Marketplace Insights: 2022 Holiday Trends says those chunky chokers, ear dressings, and vintage brooches are up, hitting 70% and 78% increase in searches year-on-year.
Etsy’s selling fees are easy to understand - it costs $0.20 to list on the platform.
In terms of transaction fees, Etsy recently increased its transaction fee from 5% to 6.5%.
Wanting to launch an online jewelry marketplace - review Etsy's business model!
Amazon Handmade Leverages its Large Existing Customer Base
Amazon Handmade is a branch of the Amazon ecosystem focused on handmade items.
It was created in 2015 with the vision to “empower makers with the tools necessary to grow successful businesses.”
One of the key features of this division of Amazon is that sellers and designers of unique pieces have access to Amazon.com’s 310 million customers worldwide.
One of the key features of this division of Amazon is that sellers and designers of unique pieces have access to Amazon.com’s 310 million customers worldwide.
Along with jewelry, the other categories available on Amazon Handmade include home decor, beauty and grooming, toys and games, and more.
In 2021, the number of Amazon Handmade sellers who surpassed $100,000 in sales increased by double digits compared to 2020.
While Amazon is an eCommerce giant that sells everything, its handmade branch has a more targeted market.
Handmade means that there is no competition with mass-produced jewelry.
Handmade means that there is no competition with mass-produced jewelry.
The platform is a little more discerning with the application process for Handmade applicants.
Products have to be approved as the company wants to ensure that all sellers selected under Amazon Handmade are actual artisans.
Artisans can begin selling their creations on the marketplace once they have been approved.
When it comes to fees, Amazon charges a Professional selling fee of $39.99 a month, but Handmade sellers don’t have to pay this fee.
Amazon Handmade sellers do pay Amazon a Referral Fee charge of 15% for each product sold.
The interesting component of Amazon is that they are able to leverage its existing customers.
When you're launching an online marketplace, it's helpful if you can piggyback off of some of your existing customers!
Luxify - the eBay of the Super Rich!
Established in 2013 by Hong Kong-based businessmen Florian Martigny and Alexis Zirah, Luxify is Asia’s online marketplace for luxury items.
In a 2015 post, the South China Morning Post dubbed the platform the eBay of the super-rich!
In a 2015 post, the South China Morning Post dubbed the platform the eBay of the super-rich!
My Fashion Republic Group acquired the company in 2019, and since then, Luxify has shifted its focus to three main categories: designer handbags, high-end watches, and jewelry.
Some of the brands that can be seen on the website include Balenciaga, Chanel, Coach, Goyard, and Fendi.
Unlike other luxury marketplaces for jewelry and watches, where they ask the seller to send the pieces to their offices for authentication, Luxify sends a device to the seller for them to do the authentication themselves with the help of Blockchain Technology.
Once the item is authenticated and Luxify has found a buyer for the item, they will send the payment to the seller’s bank account.
It is then the seller’s responsibility to ship the pieces to the buyer.
Once the buyer receives their order, the payment transfer will be completed.
The unique aspect here is that Luxify, with its unique authentication method, eliminated the need to handle inventory.
No need to ship the item back if it doesn't sell.
No need to pay storage costs typical to consignment sales.
No need to pay people to handle the inventory.
This would be a huge benefit to any online marketplace that handles Jewelry or consignment sales in general.
Summary
The jewelry industry is worth billions of dollars and is one of the most popular industries in e-commerce.
These online jewelry marketplaces range from one-of-a-kind, customized handmade pieces to rings from the newly divorced and luxury pieces worth thousands of dollars.
If you're looking to launch a marketplace, ideas and lessons such as finding ways to efficiently handle the inventory or specializing in only high-end pieces ought to be considered.
If you're looking to launch a marketplace, ideas and lessons such as finding ways to efficiently handle the inventory or specializing in only high-end pieces ought to be considered.
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