Jewelry eCommerce News – August 2022
If you’re like us, you might find it hard to keep up with everything happening in the world while trying to sort out what’s relevant for you. So here we are again, taking on that task for you. Here’s what you may have missed since last month.
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Jewelry eCommerce News – August 2022
The recent tax regulation changes for US sellers, prompted eBay to partner with TaxAct, a DIY tax preparation service, to launch the Tax Information Center for eBay sellers. This provides a five-point checklist that helps sellers remain compliant with legal matters. TaxAct also offers online free assistance and additional resources.
The Geological Institute of America (GIA) began receiving submissions for polished diamonds source verifications last month. More manufacturers are joining the program to have their diamonds GIA-graded with verified source country information. The process involves an additional third-party auditing verifying the entire paper trail of the diamond prior to submission for source verification. Lab-grown diamonds will soon be added to the service as well.
The United States Postal Service (USPS) has announced an increase of 75 cents per package to their flat rate priority mail prices for the holidays. The fees will be significantly higher than last year’s holiday rates and go into effect on October 2nd, after the Postal Regulatory Commission approves them. They will remain in effect until January 22nd, 2023.
Since jewelry is a seasonal product, highly in demand during the holiday season, jewelry sellers need to ensure they have planned for these price increases in their holiday marketing and sales strategy.
Online-sold jewelry products and overall eCommerce products have seen significant price drops in July and June of 2022. Jewelry prices also saw a decrease year-to-year overall, unlike most other categories. As the costs of other products, like food, continue to increase, these decreases in online product prices have encouraged an increased spending by consumers. July online sales have seen a 21% increase to the sales recorded in July of 2021.
One factor that contributed to this higher spending was last month’s Amazon Prime Day. As it has been the case year-to-year, the marketplace had a new record online sales, according to Adobe Analytics.
Brand owners listed under Amazon’s Brand Registry can sign up for premium A+ content for an extended period of time. Sellers have to meet certain criteria to be eligible for it. However, implementing premium A+ content has the potential to increase sales by 20%. Sellers can sign up for the program at any time. At the end of each month, Amazon will check to see which sellers meet the criteria. If you do, you will get an invite to opt in. Given that product descriptions, additional blocks of content, as well as images and videos, are extremely important for jewelry sellers, this would be a great program to jump on.
Diamond exports in Israel dropped last month, mirroring a slowdown in sales across the world. Polished diamonds exports fell 7% year-to-year. Total exports fell by 12% while the average price increased by 6%. Imports, on the other hand, of both polished and raw diamonds, increased by 19% and 29% respectively. This is a turn from the first seven months of 2022, when exports climbed consistently. It is unclear how the situation will look like for the rest of the year.
Walmart is preparing to acquire Vault Systems, a company whose Engage software/app facilitates vendor relationship management. Engage can deliver store data, actionable analytics, and additional intel used to plan, forecast, and optimize product assortment. It also helps reduce common issues with low inventory. Walmart began as a customer of Vault’s in 2017 and completely transformed its operations since through Engage’s digitization options and tools. The acquisition will enhance transparency in the supply chain operations and assist Walmart with its long-term goals of cost reduction and digital transformation. This might mean a period of transition for Walmart jewelry sellers, yet it is a necessary one, reflected throughout the entire eCommerce industry. B2B online sales, in particular, are showing an increased urgency in moving towards a new digital era.
eBay has partnered with the Gemological Institute of America to verify that the quality, condition, and description of their jewelry products is accurately listed. Jewelry is the platform’s fifth category to include a professional authentication service. It will be offered for items priced at $500 or above, at no cost to the seller. A unique QR authentication code will be provided as verification proof, and an “Authenticity Guaranteed” badge will appear next to the listing.
Target will be expanding its eCommerce operations with three more packaging centers next year, two of which in Chicago and Denver. The new hubs will assist with faster local deliveries and lower shipping costs, making it possible for Target to increase their online order capacity. This move was prompted by the post-pandemic digital sales increase, which placed Target the fifth in a top 1000 online merchants ranking in North America. Given Target’s large jewelry category, particularly fine jewelry items, it might soon become a worthy adversary for Amazon and Walmart within the jewelry industry.
Jewelry eCommerce News – August 2022📰
eBay Launches Tax Information Center for Sellers
The recent tax regulation changes for US sellers, prompted eBay to partner with TaxAct, a DIY tax preparation service, to launch the Tax Information Center for eBay sellers. This provides a five-point checklist that helps sellers remain compliant with legal matters. TaxAct also offers online free assistance and additional resources.
GIA Launches Diamond Source Verification Services
The Geological Institute of America (GIA) began receiving submissions for polished diamonds source verifications last month. More manufacturers are joining the program to have their diamonds GIA-graded with verified source country information. The process involves an additional third-party auditing verifying the entire paper trail of the diamond prior to submission for source verification. Lab-grown diamonds will soon be added to the service as well.
USPS Announces Holiday Shipping Costs Increases
The United States Postal Service (USPS) has announced an increase of 75 cents per package to their flat rate priority mail prices for the holidays. The fees will be significantly higher than last year’s holiday rates and go into effect on October 2nd, after the Postal Regulatory Commission approves them. They will remain in effect until January 22nd, 2023.
Since jewelry is a seasonal product, highly in demand during the holiday season, jewelry sellers need to ensure they have planned for these price increases in their holiday marketing and sales strategy.
US Online Shopping Increases Due to Lower Prices
Online-sold jewelry products and overall eCommerce products have seen significant price drops in July and June of 2022. Jewelry prices also saw a decrease year-to-year overall, unlike most other categories. As the costs of other products, like food, continue to increase, these decreases in online product prices have encouraged an increased spending by consumers. July online sales have seen a 21% increase to the sales recorded in July of 2021.
One factor that contributed to this higher spending was last month’s Amazon Prime Day. As it has been the case year-to-year, the marketplace had a new record online sales, according to Adobe Analytics.
Amazon Announces Premium A+ Content
Brand owners listed under Amazon’s Brand Registry can sign up for premium A+ content for an extended period of time. Sellers have to meet certain criteria to be eligible for it. However, implementing premium A+ content has the potential to increase sales by 20%. Sellers can sign up for the program at any time. At the end of each month, Amazon will check to see which sellers meet the criteria. If you do, you will get an invite to opt in. Given that product descriptions, additional blocks of content, as well as images and videos, are extremely important for jewelry sellers, this would be a great program to jump on.
Israel Diamond Exports Decline
Diamond exports in Israel dropped last month, mirroring a slowdown in sales across the world. Polished diamonds exports fell 7% year-to-year. Total exports fell by 12% while the average price increased by 6%. Imports, on the other hand, of both polished and raw diamonds, increased by 19% and 29% respectively. This is a turn from the first seven months of 2022, when exports climbed consistently. It is unclear how the situation will look like for the rest of the year.
Walmart Improves Logistics Management after Buying Volt Systems
Walmart is preparing to acquire Vault Systems, a company whose Engage software/app facilitates vendor relationship management. Engage can deliver store data, actionable analytics, and additional intel used to plan, forecast, and optimize product assortment. It also helps reduce common issues with low inventory. Walmart began as a customer of Vault’s in 2017 and completely transformed its operations since through Engage’s digitization options and tools. The acquisition will enhance transparency in the supply chain operations and assist Walmart with its long-term goals of cost reduction and digital transformation. This might mean a period of transition for Walmart jewelry sellers, yet it is a necessary one, reflected throughout the entire eCommerce industry. B2B online sales, in particular, are showing an increased urgency in moving towards a new digital era.
eBay Adds GIA-Verified Authenticity Guarantee for Jewelry Items
eBay has partnered with the Gemological Institute of America to verify that the quality, condition, and description of their jewelry products is accurately listed. Jewelry is the platform’s fifth category to include a professional authentication service. It will be offered for items priced at $500 or above, at no cost to the seller. A unique QR authentication code will be provided as verification proof, and an “Authenticity Guaranteed” badge will appear next to the listing.
Target Plans eCommerce Expansion
Target will be expanding its eCommerce operations with three more packaging centers next year, two of which in Chicago and Denver. The new hubs will assist with faster local deliveries and lower shipping costs, making it possible for Target to increase their online order capacity. This move was prompted by the post-pandemic digital sales increase, which placed Target the fifth in a top 1000 online merchants ranking in North America. Given Target’s large jewelry category, particularly fine jewelry items, it might soon become a worthy adversary for Amazon and Walmart within the jewelry industry.
News from Valigara 👀
Onboarding into the new software is the most crucial step of its adoption. This is why we connected with several integration partners, e-commerce agencies, implementation specialists, to make this process as smooth as possible. Taking this burden from the shoulders of the jewelers, we are glad to see a quick growth, even for companies with a big online legacy.
Igor’s Tip of the Month:
Match your owline points of presence to your jewelry.
Selling mass-production fashion jewelry online is critically different from selling unique designer concept jewelry. Make sure you build your online presence accordingly. So, if you are into mass production, larger marketplaces like Amazon, eBay, or Walmart will be good for you. And if you are concentrating on building a unique brand – more unique points of presence are relevant, such as your website, social channels, dedicated marketplaces, or even direct email marketing.
