Gone are the days of hopping from one jewelry store to the next to look for your dream engagement ring or that perfect necklace for someone special. As faster delivery and better product visualizations elevate the online shopping experience, consumers have become increasingly comfortable making big-ticket purchases like jewelry online. Retailers and manufacturers may be feeling the pinch of rising gold prices, which surged this spring and were up 16.5% year on year as of April. Despite greater comfort with making big-ticket purchases online—not to mention the return of trends like gold hoop earrings—price is a sticking point for many consumers.
Jewel360 compiled a list of ways retailers and vendors are embracing technology to boost jewelry sales. To maintain online sales, jewelry manufacturers need to watch overhead costs like marketing, distribution, and production, Larry Rickert, owner of Jim Kryshak Jewelers, told JCK magazine. One way to reduce overhead and attract new clientele is by leveraging digital features to create customized user experiences.
For those who love bling and baubles, there are more online options than ever. E-commerce sales are taking an ever-growing share of total U.S. retail sales, and jewelry is no exception. The U.S. Census Bureau reports that just under 16% of all retail sale transactions were made online in the first quarter of 2024, compared to about 7% in 2005. Online jewelry sales are particularly strong during the holiday season, with rings, earrings, necklaces, and other adornments among the top-selling gifts on Cyber Monday in 2023—Cyber Monday online sales were 99% higher than an average day the prior month, according to an Adobe e-commerce industry report.
The industry benefited from this boost after a pandemic-era decline in jewelry and watch sales. However, the market plateaued in 2023, and forecasts are mixed for 2024, with some top online retailers predicting a downturn in e-commerce sales. In a 2021 McKinsey report about the future of the fine jewelry and watches industry, analysts predict sustainability will be key moving forward and could influence 20 to 30% of fine jewelry sales by 2025—tripling from 2019 numbers.
Continue reading for five ways jewelry businesses are evolving as consumers increasingly shop online.