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TaxTom
TaxTom, Internet Researcher
Category: General
Satisfied Customers: 2364
Experience:  Years of experience of finding questions for employeers, family and friends.
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I recently purchased an online jewelry website. My question

Resolved Question:

I recently purchased an online jewelry website. My question is, since I do not have to worry about inventory, nor do I have to worry about shipping my merchandise to my customers, all of that is done through the company I purchased my site, what percentage should I markup my jewelry? I have everything from diamond engagement rings, pendants, diamond necklaces, and diamond earrings. I'm not sure if I want to sell less merchandise, but, have more of a markup or more volume and less markup.
Submitted: 7 years ago.
Category: General
Expert:  TaxTom replied 7 years ago.

Hello, When you first start the website I would start with a lower markup in order to buildup your company up, so a mark-up of 10 to 20 percent. Once you have a steady stream of customers gradually increase your markup until it reaches 25 to 30 percent.

Please evaluate your cost of doing business and be sure that the lower start up cost cover your business expenses. Thank You Please click accept. Tom

Customer: replied 7 years ago.

I started with a markup of 25% is that too much? I'm still new to all of this, even though I did do my research. So, are you saying the lower my markup the more sales I will have? and the higher my markup the less sales I will have?

Expert:  TaxTom replied 7 years ago.

I think 25% markup is a reasonable markup but to drive sales to your site to start you want to consider a lower markup. Sales usually increase when markup drops, you might want to start at 15% and see how it starts. Remember this should be a good time of the year to start your business as Christmas is usually the top selling period for the jewelry business. Thank You Tom

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