Cliff Notes on a JA Education Seminar–E-Commerce Without the Expense and Expertise

Jewelry Logic:

March 11, 2018

Cliff Notes on a JA Education Seminar–E-Commerce Without the Expense and Expertise

In her presentation, “Embracing E-Commerce Without the Expense and Expertise,” Lauren Kennedy from Bright Society explained that the industry needs to develop a hybrid approach to retail, an integrated online (e-commerce) and in store experience for consumers. Consumers “start their journey” online (doing research and possibly purchasing), but many “conclude their journey” in-store. Below are some cliff notes of this enlightening presentation!

Q: Why e-commerce? A: Industry is at tipping point. 3 factors are driving:
1 In-store jewelry sales are stagnant
2 New consumer expectations
3 The jewelry and watch industry is shifting to online

– Store closures are on the rise, a trend that started in 2014, but the industry is still projected as growing, and most of that growth is online
– Jewelry and watches is the fastest growing category of online retail
– Luxury markets in general are shifting from in-store to online (not a new trend)
– By 2025, 25% of all luxury goods will be sold online
– Luxury consumers expect brands to have a digital presence, and to have digital retail experience
– Newcomers are flooding online spaces
– Majority of jewelry stores are unprepared – 76% don’t have website with e-commerce capabilities

How to Embrace e-Commerce (align w/ demands of online consumer, which are not that different from in store)
1 Digital Presence
– consumers “start their journey” online
2 Brand
– prove distinctiveness online
3 Experience
– top driver: convenience
– high level presentation, for overall high level experience
4 Personalization
– speak to consumers regarding where they are in their journey
– customize to fit needs and desires
5 Trust Signals
– provide online reviews and influence, 12 times more impactful than product description

Option 1: List on marketplaces
– e.g. amazon, eBay, overstock, bright society, chrono24, crown & caliber, true facet, 1stdibs
– marketing or consulting group can handle listing
– advantages: minimal up-front investment, increased audience, additional revenue stream
– General process for listing – pretty much the same across marketplaces, though some have specific guidelines:
1 Qualify as a seller and set parameters (you are in control of shipping, need insurance, etc.)
2 prep product listings (details required), upload and integrate with their systems for doing this,
3 Have someone dedicated to managing customer inquiries and complete order and shipping on time
4 Enhance listings and profile depending on how you see customers are responding, consultants can provide analytics tools
5 Pay fees (on average, 15%)

How to stand out on eBay and Amazon
– presenter showed screen shots of examples
– pulled up screen shot of of eBay listing of engagement ring: key words, model number in title, high number of positive reviews, clear photography

Ebay:
Title (see what produces and sellers are ranking highest in views, and incorporate that into your listings)
Seller Feedback Rating
Photos (competitive advantage, styling)
Quick Response and Fulfillment (be authentic, deliver on time)
E-Store (capability in eBay, step toward building your own e-commerce site)

Amazon:
Prime (increases visibility, prime sticker)
Title (keywords are important for visibility)
Product details (they require additional information up front)
Quick Response and Fulfillment (be authentic, deliver on time)
Star Rating (their review process)

Challenges of market place e-commerce:
– time consuming, tedious
– need centralized inventory management process (especially if using multiple platforms)
– different market places have different merchandising guide, accepted product mix (new, used, branded, etc.)
– liable for fraudulent purchases
– marketing costs extra
– slow to start, growth takes time to build reputation and volume of sales

Option 2: Build an e-commerce site
– basic (use template, easy, many things worked out, restrictions if you want to make changes or build out)
– custom (quite a bit of development work, architects, designers, layout, security, takes 6-12 months)
– for both: photography, marketing, many steps after building the site…

Overview:

Q: Why e-commerce? A: Industry is at tipping point. 3 factors are driving:
1 In-store jewelry sales are stagnant
2 New consumer expectations
3 The jewelry and watch industry is shifting to online

Q&A with co-founder of Bright Society (built BS’s e-commerce site and business from ground up)
– Future of retail is integrated e-commerce and in-store experience, customers start their research online, and then migrate to store (finish their journey in store)
– BS site was built in between basic and custom, downloaded code to customize, manage own server, also has templates
– Resources needed to build site: designers, developers, project/product manager (very important that manager understands retail side (product and merchandising), and technology side
– 5 month projected timeline, took 6 month
– select a good team that likes working with one another because you are reliant on people for success of product
– Every software project has unexpected challenges: plan for design phase with high quality mock-ups otherwise making changes in development phase, on the fly is not good (take into consideration expectations of consumers and align priorities), designers are cheaper than developers – spend time and money on design phase (have a photo: this is what I want), forces you to go through the creative process too, rough draft serves as a contract to go back and keep working if necessary
– Photography is challenging – and you need to hire a photo retoucher, photos have to do the piece justice, Lightbox is helpful, but light source is more important, consistency is important
– Q: Is it profitable for you guys yet? A: Not yet (launched in early Oct.), custom is more expensive, Bright Society = $300,000-$400,000 plus cost of staffing and maintaining system and listings, price can change depending on resources
– Can’t just build a site and money comes in, needs to be maintained, marketplace: you are responsible for bringing customers to that site
– Q: Is there a price point people spend online and don’t go over? A: $20,000 for Bright Society, more for others.
– Goal: How to connect consumers starting research online to end up in your store and not someone else’s store to try on, make purchase, etc.
– Branded products sell better online. People are more willing to buy off brand (custom or signature pieces) if those trust signal Presenters were from e-commerce marketplace site that just launched in October: Bright Society

Overview:

Q: Why e-commerce? A: Industry is at tipping point. 3 factors are driving:
1 In-store jewelry sales are stagnant
2 New consumer expectations
3 The jewelry and watch industry is shifting to online

Q&A with co-founder of Bright Society (built BS’s e-commerce site and business from ground up)
– Future of retail is integrated e-commerce and in-store experience, customers start their research online, and then migrate to store (finish their journey in store)
– BS site was built in between basic and custom, downloaded code to customize, manage own server, also has templates
– Resources needed to build site: designers, developers, project/product manager (very important that manager understands retail side (product and merchandising), and technology side
– 5 month projected timeline, took 6 month
– select a good team that likes working with one another because you are reliant on people for success of product
– Every software project has unexpected challenges: plan for design phase with high quality mock-ups otherwise making changes in development phase, on the fly is not good (take into consideration expectations of consumers and align priorities), designers are cheaper than developers – spend time and money on design phase (have a photo: this is what I want), forces you to go through the creative process too, rough draft serves as a contract to go back and keep working if necessary
– Photography is challenging – and you need to hire a photo retoucher, photos have to do the piece justice, Lightbox is helpful, but light source is more important, consistency is important
– Q: Is it profitable for you guys yet? A: Not yet (launched in early Oct.), custom is more expensive, Bright Society = $300,000-$400,000 plus cost of staffing and maintaining system and listings, price can change depending on resources
– Can’t just build a site and money comes in, needs to be maintained, marketplace: you are responsible for bringing customers to that site
– Q: Is there a price point people spend online and don’t go over? A: $20,000 for Bright Society, more for others.
– Goal: How to connect consumers starting research online to end up in your store and not someone else’s store to try on, make purchase, etc.
– Branded products sell better online. People are more willing to buy off brand (custom or signature pieces) if those trust signals (reviews) are in place, but it takes time to build that reputation, similar to building trust for store in csjljrkommunity. s (reviews) are in place, but it takes time to build that reputation, similar to building trust for store in community. y is challenging – and you need to hire a photo retoucher, photos have to do the piece justice, Lightbox is helpful, but light source is more important, consistency is important
– Q: Is it profitable for you guys yet? A: Not yet (launched in early Oct.), custom is more expensive, Bright Society = $300,000-$400,000 Presenters were from e-commerce marketplace site that just launched in October: Bright Society

Overview:

Q: Why e-commerce? A: Industry is at tipping point. 3 factors are driving:
1 In-store jewelry sales are stagnant
2 New consumer expectations
3 The jewelry and watch industry is shifting to online

Q&A with co-founder of Bright Society (built BS’s e-commerce site and business from ground up)
– Future of retail is integrated e-commerce and in-store experience, customers start their research online, and then migrate to store (finish their journey in store)
– BS site was built in between basic and custom, downloaded code to customize, manage own server, also has templates
– Resources needed to build site: designers, developers, project/product manager (very important that manager understands retail side (product and merchandising), and technology side
– 5 month projected timeline, took 6 month
– select a good team that likes working with one another because you are reliant on people for success of product
– Every software project has unexpected challenges: plan for design phase with high quality mock-ups otherwise making changes in development phase, on the fly is not good (take into consideration expectations of consumers and align priorities), designers are cheaper than developers – spend time and money on design phase (have a photo: this is what I want), forces you to go through the creative process too, rough draft serves as a contract to go back and keep working if necessary
– Photography is challenging – and you need to hire a photo retoucher, photos have to do the piece justice, Lightbox is helpful, but light source is more important, consistency is important
– Q: Is it profitable for you guys yet? A: Not yet (launched in early Oct.), custom is more expensive, Bright Society = $300,000-$400,000 plus cost of staffing and maintaining system and listings, price can change depending on resources
– Can’t just build a site and money comes in, needs to be maintained, marketplace: you are responsible for bringing customers to that site
– Q: Is there a price point people spend online and don’t go over? A: $20,000 for Bright Society, more for others.
– Goal: How to connect consumers starting research online to end up in your store and not someone else’s store to try on, make purchase, etc.
– Branded products sell better online. People are more willing to buy off brand (custom or signature pieces) if those trust signals (reviews) are in place, but it takes time to build that reputation, similar to building trust for store in community. plus cost of staffing and maintaining system and listings, price can change depending on resources
– Can’t just build a site and money comes in, needs to be maintained, marketplace: you are responsible for bringing customers to that site
– Q: Is there a price point people spend online and don’t go over? A: $20,000 for Bright Society, more for others.
– Goal: How to connect consumers starting research online to end up in your store and not someone else’s store to try on, make purchase, etc.
– Branded products sell better online. People are more willing to buy off brand (custom or signature pieces) if those trust signals (reviews) are in place, but it takes time to build that reputation, similar to building trust for store in community.

JA Education Sessions run through Monday, a complete list of educational seminars can be found here.