As gold prices fluctuate, here’s how jewelers are using technology to attract new customers online

Gone are the days of hopping from one jewelry store to another in search of your dream engagement ring or the perfect necklace for your special someone. As faster delivery and better product visualizations improve the online shopping experience, consumers are becoming more comfortable making large purchases, such as jewelry, online.

Retailers and producers may feel the pinch from rising gold prices, which surged this spring and are up 16.5% year-over-year since April. Despite the greater convenience of making large purchases online – not to mention the return of trends such as gold hoop earrings – price is an issue for many consumers.

Jewel360 has compiled a list of ways retailers and sellers are using technology to increase jewelry sales. To sustain online sales, jewelry manufacturers must pay attention to overhead costs such as marketing, distribution and manufacturing, Larry Rickert, owner of Jim Kryshak Jewelers, told JCK Magazine. One way to reduce overhead costs and attract new customers is to leverage digital features to create personalized user experiences.

For those who love tinsel and baubles, there are more options available online than ever before. E-commerce sales are making up a growing share of total U.S. retail sales, and jewelry is no exception. The U.S. Census Bureau reports that in the first quarter of 2024, nearly 16% of all retail sales were conducted online, compared to about 7% in 2005.

Online jewelry sales are especially strong during the holiday season, with rings, earrings, necklaces and other jewelry among the best-selling Cyber ​​Monday gifts of 2023 — data shows online Cyber ​​Monday sales were 99% higher than the average day in the previous month to Adobe’s e-commerce industry report.

The industry has benefited from this recovery after declining sales of jewelry and watches during the pandemic. However, the market stabilized in 2023 and forecasts for 2024 are mixed, with some leading online retailers predicting a decline in e-commerce sales.

In McKinsey’s 2021 report on the future of the fine jewelry and watches industry, analysts predict that sustainability will be key in the future and could impact 20-30% of fine jewelry sales by 2025, a triple compared to 2019 .

Continue reading to learn five ways jewelry companies are evolving as consumers increasingly shop online.