We know how important it is to choose the right niche for your dropshipping store, that’s why we have decided to start a new series about top niches.
This series will be about the best product categories you can dropship, why you should dropship a specific niche, what types of products you can start selling and many other such topics.
As one of the top product niches in recent years, the first article of the series will be about the jewelry niche.
So, if you want to know why you should dropship jewelry and what type of products from this category to sell, read on.
Why is dropshipping jewelry a good idea?
There are many reasons you should start selling jewelry, this is a very popular niche with a huge growth rate and can be a great start for an online store.
Here is the data that proves this is a great dropshipping niche:
- The global jewelry market is predicted to grow by 19.88 billion USD between 2020 and 2024
- Another survey done by Statista says that the value of the jewelry market is expected to increase from about 230 billion U.S. dollars in 2020 to about 307 billion dollars by 2026.
- The biggest market for watches and jewelry worldwide in 2021 was China. With a revenue of around 85.5 billion U.S. dollars. In second place came the USA with around 69 billion dollars, followed by India with a revenue of 66.8 billion dollars.
All these statistics aside, dropshipping jewelry can be great for many more other reasons, such as:
- These products will always be trending among people, and now more than ever, due to Covid, customers look to buy their jewelry online rather than going to an actual store. Also, thanks to online shops, customers can now buy unique or handmade jewelry items from anywhere in the world.
- The jewelry niche has lots of subcategories to choose from. You can choose to sell jewelry for women or for men, or go for engagement and wedding jewelry, gold jewelry or silver jewelry, among others. You get the point, there are many ways you can go with a jewelry store and can always switch or test other subcategories to see which one works better in your region or with your audience.
- You can get a pretty high-profit markup when selling jewelry. You can even get a 75% profit markup if you find the right suppliers, which makes this niche one of the most profitable out there.
Important niche insights and analytics
Need more insights and data that proves dropshipping jewelry has been a trending niche over the last couple of years?
Well, below we have added the results we got after researching a few important keywords like jewelry, necklaces or earrings.
So, if you’re still not convinced, here’s more proof.
First, we checked how the search term “jewelry” is trending on Google. What we found is that for the past 5 years the search volumes for jewelry-related keywords have been at a very high level, which only means there is a huge demand for this dropshipping niche.
As you can see, according to both Google Trends and Keyword Planner, there is a constant interest in the jewelry niche. For example, the avg. monthly searches for “jewelry” are between 1M and 10M worldwide, and in the USA that number is between 100K and 1M.
Now, if we use other SEO tools, such as Semrush and Moz, then we have an average of 300k monthly searches/month for the term “jewelry” in the USA alone.
Below you can also see the search volumes per month for terms like necklace and earrings according to Semrush.
Now, in terms of which countries you should dropship in, that depends on many factors, of course. But, if we look at the search volumes above, we can see that there is a big interest in India, USA, and Canada. But this is one way of deciding on the market you want to sell on.
The best market to sell to is always the market you know the best, so our recommendation is to look at what kind of jewelry works best in your region. Do your research and then decide on the subcategory to sell in your market.
Another important fact you need to decide is if you should dropship low ticket or high ticket jewelry items. Again, it all depends on the direction you want to take when starting such a business, if you have experience with dropshipping or if this is your first online store.
As a rule, if you want to have a good margin, it’s recommended to multiply the jewelry cost by around 3 times when selling it in your store. Of course, this depends on the type of jewelry you decide to sell. So, if you choose to sell low ticket items, and the jewelry product has a starting price of $15, then your final price should be around $40.
Now, if you go for high-ticket jewelry items, let’s say diamond rings, then that doesn’t apply anymore. With high-ticket products, you should find the right suppliers with the best starting prices and then try different strategies, like raising or lowering the price and just test what works.
Advantages and disadvantages of choosing the jewelry niche
Before deciding on the type of niche to dropship, you should be aware of the pros and cons of that niche.
Here are the advantages of choosing to dropship and sell jewelry in your store:
- It’s highly profitable – If you know your audience and find reliable suppliers with great prices, then you can have an average profit margin of 30% when selling jewelry.
- Lots of options to source your product – There are many suppliers and platforms out there that offer high-quality jewelry items.
- Shipping costs are low – Jewelry consists of mainly small and light items which means these types of products don’t take up a lot of space when shipped. So, your shipping costs will be mostly low.
- Huge selection of jewelry subcategories – Being that there are so many subcategories of unique jewelry available, you can import new or different items to your store and test them out. This also means you can always offer new and shiny jewelry to your customers whenever there is a new supplier on the market.
- It’s easy to advertise – If you decide to sell jewelry, you have many ways to get in front of your audience. The most important one is through social media channels which actually provide one of the largest active audiences for this niche.
- No need to be in a specific location – When dropshipping you have the option to look for suppliers anywhere in the world and choose the ones that can provide the best products for your customers and region. Of course, it’s recommended that you do not choose a supplier from the EU that can ship to the USA, as this will mean your shipping times get longer.
- Great upselling and cross-selling opportunities – As this niche has many subcategories, you can always upsell and cross-sell so many types of products. Just to give you an example, if you sell bracelets and necklaces, you can also start to cross-sell rings or earrings that come in the same style so your customers can buy them as a set.
Now, as with any other product category, you also have a few cons when choosing the jewelry niche:
- It’s a very competitive market – Well, this can’t surprise you. This is a top niche, one that many choose for their online store, so of course, you have a lot of competition to fight off. But if you choose the right supplier and the right subcategory, then you have all the chances to succeed.
- Many unreliable suppliers – Unfortunately, this happens with all successful niches, you will have to be careful which supplier you choose or where you source your products from. If you choose AliExpress or Oberlo, the chances to choose an unreliable supplier are quite big.
- Payment processors issues – Many payment gateways and processors consider jewelry a high-risk business, as this niche is very vulnerable to fraud. This means you may have to face some issues with certain processors, so it’s good you prepare for such situations.
- Issues with Facebook ads – It used to happen that Facebook banned ad accounts that dropship jewelry. This doesn’t happen so much these days, but it’s good to be aware of it.
How to build a jewelry dropshipping store?
As this question requires a complex answer, we will only add here the main steps you would need to follow to start a dropshipping business:
- Research dropshipping and understand this business model
- Make a business plan
- Choose a product niche
- Choose a name for your online store
- Incorporate your company
- Create your ecommerce store
- Find a dropshipping supplier to source your products from
- Start marketing and then advertising your products
Now, if you want to read more on each of these steps, then check our detailed guide for starting a dropshipping business.
How to setup your online business properly?
Before you can start selling products, you need to think about all the legal issues and requirements behind starting an online business.
This is a very important step, one that you need to pay extra attention to, as this can have huge legal and financial implications for everything related to your business.
We won’t go into many details about this step as we have other articles that can help you with this, but we will give you some points on all of these and then direct you to the right articles.
First, you need to check what are the legal obligations in your region and then decide what type of company you need to setup depending on the country you dropship in.
Now, generally speaking, in order to start selling, receiving payments, and paying taxes, you need your business to be legal and compliant, which means you need to incorporate it. You can go for a sole proprietorship, general partnership, LLC, or corporation (C-corp). If you want to know more about each of them, we suggest you go check this article.
There are many pros and cons to each of them, that’s why we recommend consulting an attorney or another legal professional for advice on what’s the best option for your business and your region.
Most dropshipping store owners choose to register their company as a sole proprietorship (also known as a sole trader in UK) or LLC (known as LTD in UK).
If you want to dropship in the USA, then check this article on how can you setup a dropshipping business in the USA
If you are thinking of dropshipping in the UK, then you can check this guide on how to start a dropshipping business in the UK
What type of jewelry sells great?
There are so many metals, gemstones, textures, designs, and thousands of jewelry items you can choose to sell on your market. So, which one sells better and can provide high-profit margins?
Below, we have added a few jewelry categories that usually sell well in the jewelry industry:
- Gemstone jewelry items – Among the most popular jewelry items on the market at the moment, gemstone jewelry is used as both fashion accessories and also for its healing and soothing properties.
- Precious metal jewelry – These are timeless pieces that last for a lifetime and will always trend among jewelry customers. You can choose to sell silver jewelry, gold jewelry or platinum jewelry, among others, as precious metal jewelry.
- Unique, handmade jewelry – You can also choose to sell handmade and artisanal jewelry as more and more people are looking for unique items. If you sell this type of jewelry, you can either go for the whole pack and sell handmade earrings, rings, necklaces, pendants, etc., or just sell one subcategory.
- Men’s jewelry – The times when jewelry was just for women are long gone. Men’s jewelry it’s trending for many years now. So, you can actually choose to sell only men’s jewelry and dropship items such as thick rings, chains, necklaces, bracelets, etc.
Now, here are a few jewelry items that are trending in the last couple of years together with an image of how they stand according to Google Trends:
– Chunky jewelry is the bestseller on the market right now, more specifically you can sell thick rings or heavy chain necklaces.
– Earrings like hoop earrings, single sculptural earrings or long earrings are trending in the jewelry category.
– Layered necklaces are also jewelry pieces that are trending on the market.
– Bracelets such as charm bracelets, beaded bracelets or customized bracelets with initials or engravings are all very popular during the last couple of years.
Of course, these are just a few of the jewelry items that are trending these days and sell well online. What you need to know is that there are many more jewelry items that sell great. The list is endless.
We recommend researching your market and then testing out a few products to see which ones sell well in your area. But keep in mind that if you want to stand a chance in this very competitive market, you always have to pick the highest quality jewelry.
Where and how to find the best jewelry? That’s what we’re going to discuss in the next chapter.
How to find jewelry suppliers?
So, now that you decided on what type of jewelry to dropship, you need to actually find and source products. You can either check for products and suppliers on a marketplace like Amazon or eBay or dropshipping platforms like AppScenic.
Now, this step of finding suppliers and products is a huge part of your dropshipping journey, so you really need to research, take your time and test more than one platform or marketplace.
It’s essential to find a supplier that can offer jewelry items at the highest quality possible, this is very important if you want to succeed. You also need to look for the supplies with the fastest delivery times, as 42% of shoppers expect a 2-day shipping option available.
Now, if you want to try marketplaces like Amazon, AliExpress, Wayfair UK, VidaXL or Doba you will quickly learn that they are full of unreliable suppliers. The way your suppliers can make or break your online store.
If you choose a platform like AppScenic you have access to a huge range of unique and high-quality products from top and reliable suppliers that can also deliver ultra-fast. With over 40,000 jewelry items, the AppScenic product catalogue has all types of trending products, such as handmade earrings, thick rings, layered necklaces or beaded bracelets, and so on. More than that, most of the suppliers can ship worldwide, from USA to Australia or Europe and Canada.
How to start advertising for this niche?
As we said in the beginning, you have a huge audience for your jewelry business on social media channels, such as Facebook. So start there, build your Facebook channel and get in front of your audience with the right Facebook Ads. If your budget allows you, we also recommend advertising on Google (specifically Google Shopping Ads), TikTok, and Pinterest.
As for how much budget you need for jewelry advertising, it really depends on the marketing approach you want to have and what type of jewelry you decide to sell, high ticket or low ticket.
If you go for cheaper jewelry, in the $10-100 range, then Facebook works better and a budget of $500/month should work. Now, if you plan to have Google Ad, which actually works best for medium to high-priced items (so above $100), then you would need more than $500/month, at least $1000/month.
How much money do you need to start a jewelry dropshipping store?
As we always say when we’re asked this question, it’s very difficult to say exactly how much money you would need. It depends on what type of store you decide to build (the ecommerce platform you choose, for example), the type of jewelry products, the number of products you add to your store, the competition, and many other things.
What we can say is that to build an online store with everything included, such as features and other security tools, and to start advertising as soon as possible, you need to have around $1000-2000 to start with.
Why dropship jewelry on AppScenic?
AppScenic is a great dropshipping platform to start with. On our platform, you can find lots of suppliers that sell unique, high-quality jewelry from all over the world.
Ready to dropship with us? Register now
As you have probably already figured out by now, jewelry is definitely one of the best dropshipping niches you can choose to go for.
Of course, dropshipping jewelry can come with its own pros and cons, such as the huge variety of items and suppliers out there (a big pro for this niche) or the fact that you have a lot of competition to beat (on the cons side).
But with a lot of work, research, testing, and choosing the right suppliers and platform, you can definitely make it in this business.
Now, for all the niches reviewed in this series, we are going to give a rating. This rating will be based mainly on the interest and success rate and how easy it is to get started plus our own experience with it.
So, after writing this article and doing extensive research, we can say that this niche has a rating of 8/10.
All in all, now it’s definitely the perfect time to start dropshipping jewelry.
Want to read more of our Top Niches Series articles? Then go check them out now.