Most jewellery businesses start from passion. However, many business owners question whether continuing self-production is the best approach as the company grows, due to the time commitment. Manufacturing is an essential part of any business that sells a product. When it comes to these decisions related to production, there are many elements that come into play when a jewellery business is in the decision process.
Let’s break down two options for production, including the benefits of each and additional costs associated with them, and the types of distribution for your jewellery business.
Manufacturing a product in-house can mean making it in a spare room, if your business is small enough, or renting a large space. The jewellery business is responsible for purchasing the equipment needed to make the jewellery, whether that be tools or machines. Let’s look into the benefits and downsides of this method of production.
Here are a few of the pros associated with in-house production.
Here are a few of the cons associated with in-house production.
If you are wanting more flexibility with your jewellery designs and to ensure your products are produced in excellent condition, your business should consider in-house production, even if it takes a lot of time.
When your successful jewelry business reaches the point where you are experiencing high demand for identical products that are selling out quickly, the time has come to consider outsourcing your production. In order to sell hundreds, thousands, or even millions of your company’s most demanded jewellery pieces, your solution will have to be contract manufacturing. With contract manufacturing, your business will work with a manufacturer that specializes in mass production of goods. This process will allow you to receive large quantities of your jewellery designs to keep up with customer demand. Let’s look into the benefits and downsides to this method of production.
Here are a few of the pros associated with outsourcing production.
Here are a few of the cons associated with outsourcing production.
Consider contract manufacturing for your jewellery business, if having someone else produce your jewellery is reasonable for your business to grow. For a price, contract manufacturing relieves your jewellery company the burden of hiring production staff, purchasing machinery, and much more.
Manufacturing is a large, essential section of any business that will shape how the business will run. You must consider your own business and product needs when deciding whether to self-manufacture or contract manufacture.
There are important factors you must consider.
Partnering with a manufacturing company can bring many benefits and will allow you to expand your business. As your jewellery company is going to be in business long-term, it is essential to find a reliable manufacturer you can build strong relationships with and depend on for years to come.
Here are several points to look for in a contract manufacturer, if you plan on working with one.
Both methods have their advantages and disadvantages that balance each other out. It will be your company’s decision when deciding which route to take.
Distribution is the activity of delivering your jewellery products to consumers, and it is one of the biggest decisions for your business. You must plan your business in terms of these operations. Here are a few options for distribution channels and their descriptions.
Direct distribution or if you are selling on Amazon, fulfilment by the merchant, is the method of distribution where the merchant handles all aspects. Products are shipped directly to the buyers from the merchant. Businesses must consider parts like storage and management of inventory, product packaging, and shipping. Once you receive an order, an employee must collect the products, package them up, and ship them on time. You will need to provide adequate packaging so your jewellery is not damaged during the shipment process.
Advantages of direct distribution
Disadvantages of direct distribution
Indirect distribution relies on intermediaries to help with the process of delivering products to consumers. With this method of distribution, orders will be placed from your business and another company will complete the distribution. When selling on Amazon, there is the option of having Amazon helping with your distribution, which is referred to as FBA, fulfilled by Amazon. Depending on your chosen intermediary, shipping times will vary. Amazon offers faster shipping with Prime, but another company may have slower processing and shipping rates,
Advantages of indirect distribution
Disadvantages of indirect distribution
With dropshipping, orders are placed from you where they are then shipped from a third party. You are not involved with the production or distribution process and do not have to keep up with inventory. With this method, you must trust your jewellery will be produced like the descriptions and arrive on time and in great condition to your customers.
Advantages of dropshipping
Disadvantages of dropshipping
There you have it, we know this is quite a lot of information to process, but we wanted to provide an exhaustive description of all of the options available. Let’s now move on to our conclusive remarks.
Production and distribution are important components of your jewellery business. There are many factors to consider when deciding your jewellery company’s methods. Are you willing to commit to the huge time investment that accompanies making the jewellery designs yourself? Instead, are you looking to save money by outsourcing? Selling direct to consumers will allow your business to control all aspects of distribution and ensure they are done to your standards. There are so many questions to be asked and not just one right or wrong answer as to which method is leading. Ultimately, it is up to your jewellery business to decide what is best for the company.
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