| Diamond shoppers today have more choices | | | | diamond they want based on the |
| than ever on where to buy their diamond | | | | specifications in the list. The shopper |
| engagement ring, diamond earrings and | | | | pays for the diamond in advance and then |
| other diamond jewelry items. However, | | | | the wholesaler or the retailer ships the |
| with greater selections come bigger | | | | diamond to the consumer. |
| potential risks and rewards. You need | | | | The online jewelry retailers offer the |
| to do your homework and understand how | | | | advantage of much greater selection than |
| to select the best company for your | | | | you can find in a jewelry store and the |
| diamond purchase. | | | | ability to ship the items all over the |
| The retail diamond market is comprised | | | | country, which provides greater options |
| of three broad categories of diamond | | | | for shoppers in small towns and rural |
| sources; jewelry stores, ecommerce | | | | areas. Due to low overhead costs, |
| diamond companies and diamond brokers. | | | | online jewelers can provide lower prices |
| Jewelry Stores | | | | than most jewelry stores. The |
| Until recent years, jewelry stores were | | | | disadvantage of the online jeweler is |
| the only option for most diamond | | | | that there are few safeguards in place |
| shoppers. This was especially true for | | | | to keep the consumer from making a |
| smaller towns and rural areas. These | | | | mistake. Picking the least expensive |
| stores had a monopoly, much like Ma Bell | | | | diamond from a list of options often |
| with the phone systems during most of | | | | means there is something less desirable |
| the 20th century. Jewelry stores were | | | | about the diamond. Without an expert |
| the only game in town and could set | | | | adviser to help, the consumer is mostly |
| their prices at whatever markup they | | | | on their own to make their selection. |
| wanted. | | | | Diamond Brokers |
| Jewelry stores depend on impulse buying | | | | There is a third type of diamond |
| so they focus on having a selection to | | | | retailer, the diamond broker, that |
| pick from, name recognition through | | | | differs from the jewelry store or |
| extensive advertising, and being | | | | e-commerce retailer. Like most |
| convenient so shoppers can walk in and | | | | e-commerce retailers, brokers do not own |
| make a purchase with no education or | | | | inventory and have low overhead, but |
| knowledge of the product. If it looks | | | | they differ in that they work as diamond |
| nice to an impulse buyer, they will pull | | | | consultants for the shopper to find the |
| out the credit card and have it | | | | best diamonds meeting the consumer's |
| gift-wrapped. To attract the impulse | | | | requirements. |
| buyer, jewelers built elaborate stores | | | | To attract new clients, diamond brokers |
| with polished marble floors, expensive | | | | rely on word of mouth advertising. They |
| display cases, and lighting that makes | | | | typically have a website focused on |
| everything in the store sparkle. | | | | online education and shopping advice |
| To pay for the stores, the decorations | | | | instead of a list of inventory and the |
| and all the expensive advertising, | | | | online shopping cart. Diamond brokers |
| jewelry stores must maintain high | | | | work with their client to find the best |
| markups on the items they sell. The | | | | diamond on the wholesale market and |
| more expensive stores have bigger | | | | present it to the client in the broker's |
| inventory, higher rent and more | | | | office or ship the diamond to the client |
| advertising, which dictates the higher | | | | to examine before they purchase. The |
| markup necessary to pay for all that | | | | result of the lower overhead and |
| overhead. | | | | personal consultant service is that |
| E-Commerce Diamond Retailers | | | | clients usually get a better diamond at |
| The online shopping cart of hundreds of | | | | a lower price than with jewelry stores |
| jewelry retailers has been one of the | | | | or online retailers. |
| big growth areas for e-commerce. | | | | To determine which company is going to |
| Shoppers can shop from the convenience | | | | be the best supplier for your diamonds, |
| of their home or work computer, look at | | | | know what retailer characteristics are |
| the pictures of thousands of jewelry | | | | most important to you then ask many |
| items online and place their order | | | | questions. Be sure the company you |
| without ever talking to a human. | | | | select is going to be able to provide |
| E-commerce diamond retailers provide a | | | | the personalized service, expert advice, |
| list of diamonds owned by groups of | | | | high quality diamonds and low prices you |
| wholesalers and let the shopper pick the | | | | deserve. |