Would it surprise you to know that luxury items, like jewelry, tend to sell better than other verticals in a downturn economy?
Sales for jewelry tend to continue without much disruption because these items attract a high-income customer base who typically have more disposable income.
In fact, statistics show that the U.S. jewelry market is expected to grow by a compound annual growth rate (CAGR) of 0.78%% from 2021 to 2026 and earn $61.7 billion in revenue by 2026. On top of that, online jewelry sales amounted to almost $7.6 billion in 2021 in the U.S. despite the pandemic. (Zippia Research)
So, you can see learning how to increase jewelry sales would be time well invested.
Let’s start by considering some high-level tips for selling your glittery inventory.
Proven tips for selling jewelry
As a jewelry retailer you probably already recognize that jewelry tends to attract customers simply because of its sheer beauty, but if you’re looking to boost your jewelry sales and improve your business’s bottom line, here are a few jewelry-selling tips.
1. Know your customer
Jewelry retailers with a single, private boutique store may have some idea of what a long-time customer may want, but this is not the case for jewelry retailers with multiple locations and online retailers who never meet their customers.
In this case, you can:
Analyze sales data
Your sales data can provide valuable insights into who your customers are, what they are buying, and their buying behaviors. Then you can use this information to identify trends, popular products, and customer demographics.
Modern technology, like AI-driven analytics, provides you with detailed data-driven information about your customers so you can personalize your promotion efforts to them, like recommending complementary pieces of jewelry.
Their customer experience improves and sales increase.
Another effective way to get to know your customers is by asking them directly. You can conduct surveys to gather information on their preferences, needs, and shopping habits.
Use loyalty programs
Loyalty programs are growing in popularity as an effective way to gather customer data and build stronger relationships with your customers. By offering rewards and incentives for purchases, you can encourage customers to provide information about their preferences and shopping habits to get to know them better.
2. Maintain in-style inventory
While valuable jewelry holds its value, styles change. A 22-karat rope chain popular in the 80s is still worth a lot of money, but when was the last time you saw someone wearing one?
Therefore you need to make sure your inventory is both appealing, current and available for your customers.
So, make sure to:
One of the key factors in driving jewelry sales is having the right products in stock at the right time. You can use AI-based analytics to assess market trends, so your inventory reflects what is popular as well as make sure you are not holding onto an expensive stock that is out of style and not selling.
Identify your best-sellers
It’s pretty easy to know what your most popular products are because they sell out. Selling out sounds great, but it actually isn’t because that also means you are understocked, with no replenishment stock, and missing out on potential sales.
However, if you analyze your sales data periodically, you can identify which jewelry items are most popular with your customers.
Some retailers may try to reconcile sales data from various spreadsheets, but usually, it is a clumsy, time-consuming way of doing it.
Retailers who want a more efficient, accurate way of demand forecasting opt to use advanced analytics, with AI and machine learning algorithms to quickly and accurately highlight which items are most popular right down to the SKU level.
Once you know this, you’ll know what your customers want to buy from you, and you’ll be able to order and keep the popular and in-style jewelry on hand.
3. Plan for seasonal fluctuations
There’s winter, spring, summer, and fall…and then there’s wedding season! You won’t see it on any calendar, but it’s a very real season where the majority of weddings take place in certain months, which means jewelry purchases also increase.
In the Western world, the most popular wedding months are typically June, July, and August. During these months, jewelry retailers often see an uptick in sales of engagement rings, wedding bands, and other wedding-related jewelry items for the wedding party.
And then there are also fluctuations during the holiday season when jewelry sales peak.
So, while you may already be familiar with these seasonal peaks, knowing how much inventory to have on hand, may still not be clear. How much more do you need so you won’t be overstocked or understocked?
An accurate seasonal demand forecast is what you’ll need to plan for seasonal fluctuations.
A precise forecasting tool like AI-driven analytics can help as it analyzes data from previous seasons to clearly indicate what SKUs sold the most and the least in those time periods. But it also provides a more fulsome picture based on factors that influence product demand such as price elasticity, geo-demographics, and dozens of other variables.
Boost your jewelry sales with these strategies
Your ability to increase jewelry sales is available by applying the outlined tips for selling jewelry, most of which are closely supported by AI-driven analytics.
These proven tips include:
- Learning all you can about your customers
- Keeping your inventory stylish
- Making enough inventory in peak seasons
Apply these jewelry-selling tips and you’ll see an increase in your sales.