Etsy recently announced a 6% decrease in the GMS in the 2024 Q4. Even without these news releases, many jewelers have been updating on slow marketplace sales, harsher competition, and Etsy’s inability to utilize marketing budgets jewelry sellers are ready to pay by providing more traffic. It’s common to have only $25-$35 spent in the daily budget, even committing to a $150 daily budget.
Etsy has long been the go-to platform for independent jewelry sellers. In 2022, jewelry comprised about 20% of the platform’s listings. A 6% quarterly dip translates into potentially hundreds of millions in lost sales across the platform.
If Etsy’s trajectory continues downward, diversifying your sales strategy isn’t optional—it’s necessary. And if your whole business is based on selling jewelry on Etsy, the situation is even more challenging. What are the main steps to balance your online jewelry sales performance following the Etsy’s dip?
1. Focus on Your Own D2C Website
Investing in your own jewelry eCommerce website is one of the smartest moves to reduce dependence on marketplaces. Owning a website means you control customer data, pricing, and branding. You can track buyer behavior and optimize. For many businesses, D2C channels can contribute 30-50% of total sales when built effectively, already in 2-3 years of operation.
2. Consider Large Marketplaces
Expanding to large, generalist marketplaces like eBay, Amazon, and Walmart can be a highly effective strategy. These platforms offer massive audiences and significant infrastructure to support sellers.
-
eBay
With 135 million active users worldwide in 2023, eBay remains a strong choice for sellers of unique, second-hand, and affordable jewelry. Lab-grown diamonds are very common. The marketplace setup is not too complicate. -
Amazon
Amazon Handmade offers a dedicated section for artisans, while the main platform is ideal for scalable, mass-market jewelry. Fashion items are ideal for Amazon’s logistics infrastructure (Fulfillment by Amazon). High competition require careful cost management. -
Walmart
Walmart Marketplace has become a fast-growing eCommerce player, with annual gross merchandise volume exceeding $80 billion. It offers access to a broad U.S. customer base, with particular growth in jewelry and accessories. Selling jewelry on Walmart requires focus on competitive pricing, good US logistics, ability to stock jewelry on Walmart Fulfillment Services.
These marketplaces are proven leaders in selling jewelry online. They are quite crowded and require a professional approach focusing on pricing, logistics, and competitive research. There is no “one best place to sell jewelry online for all” – the key to finding the best online marketplace to sell jewelry is profiling your business.
3. Explore Niche Marketplaces
Niche marketplaces offer targeted audiences and a focus on specific jewelry categories. They’re ideal for high-value or unique items that need the right buyers. In addition, they are easier to ignite if it’s a right fit for your jewelry.
-
Catawiki
Focused on auctions for vintage, high-value, and niche jewelry. Sellers can earn much higher margins above fixed-price markets due to competitive bidding, and lower competition. Be very careful with the marketing due to its no-reserve auctions.
Best for: Vintage, luxury, and rare jewelry. Precious gemstones fine jewelry. -
LiveAuctioneers
It specializes in live bidding and connects sellers with high-end buyers. Jewelry, particularly antique and fine pieces, frequently sells for above-market prices, with primary market in the US.
Best for: Antique, estate, and collectible jewelry. -
1stDibs
Known for its luxury focus, the platform connects sellers with affluent buyers. Average transaction values are $2,000–$5,000, with every item vetted by in-house experts.
Best for: Exclusive, high-end jewelry. -
Ruby Lane
Offers access to vintage collectors with lower listing fees than Etsy. While the buyer pool is smaller, it’s highly targeted, which makes it relevant for selling more jewelry with focus on design.
Best for: Vintage and collectible jewelry.
Niche jewelry marketplaces often work best when paired with large marketplaces and D2C efforts for balanced exposure.
4. Analyze Marketplace Performance to define your next steps
Each platform has strengths and weaknesses. Using sales data, calculate your profitability for each channel. For example, if a sale on Catawiki nets a 30% margin while eBay provides 20%, focus your efforts accordingly. Introduce data analytics tools to make this process a routine business management process.
5. Strengthen Retention
Retaining customers costs 5x less than acquiring new ones. Simple tactics like loyalty programs, email campaigns, and exclusive offers can increase lifetime value. Personalizing communications can boost retention rates by up to 15%. Dive into your CRM and make your clients base work for you.
6. Adjust to Trends to get more traffic
Keep a close eye on emerging trends. Lab-grown diamonds, sustainable jewelry, or yellow gold’s return to popularity create buyers’ expectations. Marketplaces often promote trending categories, which can guide your inventory decisions. Offering the right product at the right time boosts visibility and aligns with shifting consumer demand.
7. Optimize Business Operations
The positive results of selling jewelry online are not about income only. Focus on your expenses, too. Selling on multiple platforms is necessary but also operationally complex. Simplify this by synchronizing inventory, pricing, and listings across channels. This reduces errors, eliminates manual work, and allows you to focus on growth. Businesses using multichannel management software report a 30% -40% reduction in time spent on administrative tasks.
Conclusion
Etsy’s sales decline in Q3 2024 is a good example for jewelry sellers. While the platform remains viable, diversifying across large and niche marketplaces, strengthening D2C channels, and optimizing operations are critical steps to minimize risk and ensure growth. By evaluating your sales strategy with data and adapting to market trends, you can thrive even as individual platforms face challenges.
