Sourcing Wholesale Jewelry – 15 Questions To Ask

In the last email I discussed some steps to help your business get ahead during the winter. One of the most important is choosing trusted sources. Although I sell high quality product and provide to my customers what I hope is considered very good service, I know most of my clients have other sources. The way I see it, it is important that you choose your other sources wisely because it will only make your business stronger.

Here are 15 questions to research or ask your next supplier, to help determine if they are right for you, and my rationale for each:

1) Are they really a wholesaler?
“wholesale prices” usually translates to slightly below retail. If they sell retail or simply require you to purchase more than $x then they are not a true wholesaler. Wholesalers only sell to other businesses. Period.

2) Do they have a minimum order/ Pricing Structure?
Most do. But inversely to #1, just because there is no min does not imply that they are a retailer. Some of the most reputable wholesalers (like us) do NOT require a min order. More importantly, check if there are terms or tiers for getting the best prices. Some companies require high volume purchases ($1000+) before they give you the best prices. The base price may not be much better than retail.

3) What is the return policy
Check if there is a re-stocking fee and what the terms are for returning product. Is your satisfaction guaranteed? Most companies these days have very generous return policies, so if they don’t, be skeptical.

5) Do they allow drop shipping?
This should raise some flags. Personally, I am not a fan of drop-shipping. The model is a customer service killer. I would recommend staying away from dropship companies.

6) Do they retail their own product?
If they retail the exact same product they are wholesaleing to you, don’t buy from them. Period. You don’t want to be competing against your supplier because they will always be able to undercut you and are not really looking after your interest as a wholesale customer.

7) Does someone answer the phone when you call?
Do they recognize your name? Will you have a permanent account rep? This is a big deal. You want your supplier relationships to be personal – in the sense that they know who you are and understand your business. Even in the Web 2.0 age the person to person contact is important. If they don’t take the time to get to know you a little or don’t return your calls in a timely manner, this is a very bad sign.

What services do they provide after the sale to help your business succeed? Is your relationship over once the order is placed? Will they answer your questions and give you advice on marketing the jewellery? Provide selling tools such as online and offline catalogs you can utilize? Try to get a sense of how interested they are in helping your business as opposed to just ‘getting’ your business.

9) How often do they stock new product?
1000 products may seem like a lot, but over the course of a few months if you see the same 1000 products, the number will seem a lot smaller. Buy from companies that are nimble and responsive to the marketplace. You want your sources to be always on the hunt for new and unique designs.

10) Do they re-stock the same product over and over?
This may be relevant to you only if you have a or catalog and plan to re-order same items again and again. At wholesalegemshop.com for example, we like to vary our designs and don’t usually re-stock the same items month after month. Keeping designs fresh helps sales. But if you plan to sell on your website or your own catalog, be sure you figure this out ahead of time. You don’t want to spend hours editiing a photo and printing a catalog only to find out you cannot source the same items.

11) Are shipping rates reasonable?
Some places make all their profits on the shipping. Some sites charge per item. This is especially important for interanational orders. There are economical ship methods for international, so if someone tries to overcharge you be very skeptical of their credibility. Jewelry is very light and can be shipped through the postal service for only $1-$5.

12) Is their website secure?
Look for the secure lock bottom of browser. Only really matters that the checkout is secure. If you are not on an https page when you begin the checkout process, RUN! Your credit card information will not be safe if you enter on an non SSL site.

13) Are they members of the BBB?
Click logo on their site for report. This is a great way to measure a companies reliability. The fact that they pay $400+ per year to be members says a lot in itself. And the BBB has high standards. But click the logo on the site. I had someone steal my custom BBB logo and put it on their site so when a customer clicked it, they were directed to MY BBB Report page! Very slimy. Be sure to match the name of the company with the name on the BBB report. Lots of scammers out there.

14) Do they post real, updated customer feedback?
A couple hand-picked entries don’t really count. Look for sites that share loads of feedback that (when you read) is obviously unedited. Also check the dates to see if they are recent.

15) Do they have a blog with useful information (and not just spam)?
This will tell you a couple things: first – often times you can get some great insight into their products of helpful tips from a supplier’s blog. Also, it is an indication of how serious they take customer service. I.e. spammy blog could mean that their bottom line is volume, not quality.

Posted in Buying, Silver Industry, Sourcing, Tips