On-Line Idea: #37. Open a jewelry store.

40 Ideas

Top 40 On-Line Business Ideas For Beginners

37. Open an online jewelry store.

online jewelry store

There are several ways to put your eye for jewelry design and style to work in an online business:

  • Sell your own designs and products with an e-commerce site.
  • Use Etsy to sell handcrafted pieces.
  • Source jewelry from manufacturers for a dropshipping business.
  • Set up an Amazon store and use FBA to sell customized jewelry.

For a unique take on an online jewelry business, listen to this interview with Jessica Honegger. She created Noonday Collection on a social enterprise model.

Start-Up Costs for Home-Based Jewelry Businesses

It costs $ 604 – $16,300 to start a home-based jewelry business. Start-up costs vary depending upon the type of home jewelry company you want to launch; home jewelry shows, network direct sales, craft, and art shows, vintage jewelry resale, online jewelry boutique, or crafting handmade jewelry for sale at wholesale or retail. Keep reading for detailed expense lists below.

start-up costs for handmade jewelry business home-based

Making Handmade Jewelry Starting Expenses

The total cost to begin a handmade jewelry business is $3,285 – $16,300 which includes set-up costs, legal business registration, logo design, social media, jewelry making supplies, website development, and advertising.

Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Logo Design, business cards & signs – $0 – $1,500.
  • Website – $250 – $1,500
  • Telephone – $9.99 – $50
  • Equipment & Tools -$250 – $1,200
  • Display props and shelves – $350 – $750 (for photoshoots and storage)
  • Camera or photography services – $500 – $1,500
  • Advertising campaigns – $500-$7,500
  • Social Media – Under $25 per month

Inventory & Supplies Materials

  • Jewelry Making Materials – $250 – $4,000 (to make new inventory after items sell)
  • Labor costs $ 500 – $1,500 for jewelry crafters makers
  • Supplies – $150 Office supplies
  • Packaging Boxes, Shopping Bags & Wrap – $500 – $1,700

Total Start-up Costs = $ 3,285 – $16,300

Overhead and Ongoing Expenses

  • Inventory & Manufacturing Supplies – $500 – $5,000
  • Transportation Costs – $250-$2,000 for travel to craft shows and traveling expenses
  • Show Fees – $100 – $1,700 for fees paid to organizers for displaying at shows.
  • Telephone – $25 on average
  • Software – $20 – $150 accounting, POS credit card processing, graphic design
  • Web Hosting – $4.99 month at Bluehost
  • Shipping costs for merchandise to store or customers – $750 – $1,200
  • Advertising – $1,500 – $3,000
  • Labor – salespeople, jewelers, shipping clerks – $1,500 – $6,000
  • Owner Salary – $4,200

Independent Jewelry Consultant Startup Costs

The startup costs to sell jewelry as a home-based consultant is $604 – $3,153 and depends upon which direct sale company you represent. In addition to your starter kit of sample jewelry and marketing materials, you will incur costs for legal business registration, social media, transportation, and office supplies. Keep reading for total startup costs lists.

Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Business cards & catalogs- $100 (sometimes included in starter inventory kit)
  • Starter kit of jewelry samples and marketing materials $49 – $599 (see list of direct sale jewelry companies with kit costs here)
  • Website – $19.99 – $250
  • Telephone – $9.99 – $50
  • Equipment – $0-50  for POS to charge customer credit cards
  • Promotion campaigns – $150 – $1,500
  • Social Media – Under $25 per month

Inventory & Supplies Materials

  • Inventory – $0 (vendor sends your customer order directly so no need to buy initial inventory)
  • Supplies – $150 Office supplies
  • Packaging, boxes, ertc Shopping Bags & Wrap – $100 – $350

Total Start-up Costs = $ 604 – $3,153

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Overhead and Ongoing Expenses

  • Telephone – $25 on average
  • Software – $20 – $100 POS credit card processing, graphic design
  • Web Hosting – $4.99 month at Bluehost

FAQ: Jewelry Business Startup Costs

Is owning a jewelry store profitable?

Jewelry stores are amongst the most profitable types of retail stores. Forbes reports that jewelry stores are highly profitable and generate pre-tax net profits of 5.94% as compared to the least profitable office supply stores at 1.57%.

How much does a jewelry business owner make?

On average, US-based jewelry store owners make an annual salary of $40,254. As reported by Salary.com the lowest salaries for jewelry owners is $25,670 and the highest at $59,182.  Jewelry designers make an average of $47,000 annually according to Glassdoor. Wages for independent jewelry sellers consultants average $24 per hour says Indeed.com

What is the average profit margin for jewelry items?

The average gross profit percentage of jewelry items is 42 – 47%. Note, however, that this is a GROSS profit figure – which means that it is only revenue minus material cost of goods and does not include an allowance for overhead costs.

How do you price jewelry profitably?

To price your jewelry for healthy profits calculate your total – double those costs – then add your packaging and labor costs. Your final prices should be within your acceptable marketplace price range for similar items from competing jewelry designers.

What should I charge for custom work and jewelry repairs?

Charge triple your bench jewelers’ hourly wage for repair work recommend expert jewelry shop owners. Start with the jeweler’s hourly wage, let’s say $20, and mark it up (just as you do for merchandise sales) triple the $20 hourly to $60 fee for custom work and repairs.

The Gem industry experts at Polygon recommend this formula because a) all work takes longer than planned; b) downtime needs to be added in (looking for supplies, etc) and c) free repairs need to be absorbed into your pricing calculations.

Check out my guide on how to start your business right with tons of useful tips I learned by successfully starting, building, and selling multiple companies.