Excess Jewelry Inventory: Pros and Cons

Learn more about the advantages and disadvantages of stocking up on jewelry pieces.

As a jewelry business owner, you should be skilled enough to manage your inventory. Some prefer to stock up on many items, while others like to keep them controlled. An effective inventory strategy for one may not be effective for another.

To determine whether excess inventory is an excellent fit for your jewelry shop or not, here is the list of pros and cons to consider:

PROS

#1 Bigger savings

Buying wholesale sterling silver rings, earrings, necklaces, and other pieces in bulk will surely save you a lot. Most wholesalers offer huge discounts for huge lot orders, and you can save on shipping costs as well.

#2 Buffer

Excess jewelry inventory provides a buffer for demand uncertainty. This may be a risk, but it provides benefits in the long run, especially during holiday seasons. Extra inventory will reduce lead time.

#3 Excellent customer service

You may encounter customers who might need several pieces of a particular item. With an extensive inventory, you can provide them with the products they need, hence, a happy and satisfied. There is no need for pre-selling items as you have everything on your website or store on-hand.

#4 Fast deliveries

For online jewelry stores, you can ship out items immediately. If your delivery partner unintentionally lost an order, you can easily send a replacement while sorting out the problem. Another point for customer satisfaction indeed.

#5 Promotions

Leftover inventory from last season can be used as freebies and promotional items. Regular promos will attract potential customers and turn old ones into loyal customers.

CONS

#1 Big cashout

An excess inventory means you need to cash out a rather significant amount of money. Because of this, stocking up is not recommended for small start-up businesses.

#2 Unsellable items

If you have too many pieces of a certain design that have been in storage for months, this design is most likely out of the catwalk. For instance, if you bought Easter-inspired jewelry, say Easter egg earrings, and don’t get to sell them out within the season, you’ll end up with unsellable earrings for the rest of the year.

#3 Need for a secure space

Jewelry may not take up too much room, but having a secure storage space does pose a problem. If you’re a small start-up business and have many inventory items, you need a safe place to keep them. In other words, you will need to invest in a vault, which will incur costs to your products.

The takeaway

For jewelry businesses, inventory indeed is an important matter. Make sure to weigh the pros and cons before investing in anything. It is always good to take risks but be ready for any consequences.