How E-Commerce Has Changed an Industry

E-Commerce in the Jewelry Industry The jewelry industry has changed dramatically over the past decade as 800 numbers and mail order catalogues have shifted to Web sites and orders online. Jewelers are discovering new ways to benefit from investing in e-commerce to make their sites fully functional and profitable, according to researchers and small businesses experts. For retailers, they are many advantages to developing a business strategy that takes advantage of the power of the Internet (NSW, 2003).

Retailers in the online jewelry market have been able to seriously increase their revenues as a result of e-commerce (Tracy, 2000). According to recent research, the United States market will grow from $77 million in 1999 to over $1 billion in 2004. In addition experts predict that growth of the online jewelry market will be faster than that of consumer e-commerce in general and of Web adoption in the U.S. In general.

The market will defy the conventional wisdom that says consumers would want to see and hold fine jewelry before they plunk down large amounts of money," according to Jonathan Gaw, a research manager with IDC's Consumer eCommerce Major Purchases program (Tracy, 2000). "Although (the industry) faces the same challenges with regard to channel conflict and infrastructure development as those confronted by their counterparts in other industries, fine jewelry retailers will be able to apply the lessons of those that came before them to accelerate their learning curve," Gaw said.

E-Commerce Customers and Features The majority of customers who purchase jewelry online are experienced e-commerce purchasers who are comfortable with the process. "Online jewelry consumers will know what a good Internet selling experience is, and they won't tolerate a poor one from a retailer trying to sell a $1,000 item," Gaw said (Tracy, 2000).

The growth of the online jewelry market is fueled by an increasing amount of jewelry stores selling their products online, the lower prices of online goods, improvements in technology that will enhance online viewing, and the no-pressure atmosphere of online buying (Tracy, 2000). Research shows that brick-and-mortar jewelry retailers who engage in e-commerce will have a significant advantage over brick -- and mortars from other industries that moved online.

Brand names and the trust they convey will be the reason for the advantage as they are more important factors with jewelry purchases than other purchases. In the modern global market, e-commerce strategies can produce results on the supply or demand side of just about any retail business, bringing in new business that would never have thrived without existence of the Internet and the new trading possibilities it brings to the retail world (NSW, 2003).

In addition to the enhanced marketing capabilities that e-commerce provides, retailers can benefit from a variety of other e-commerce features. For example, a small local jewelry store can sell their products or services to buyers in other areas of the country or around the world without having to open a store in the area. However, businesses must be sure to develop production capacity, transport and distribution channels to support increased market demands generated by e-commerce activity.

In addition, implementing e-commerce strategies can reduce labor, supplies, and human errors, which can all be detrimental to the cash flow of a small store. In addition, e-commerce quickens the pace of inventory turnaround, invoicing and accepting payments via the Internet. Client retention is an important factor for all retailers, and, in most cases, increasing orders from an existing customer is less expensive than gaining a new one.

For this reason, e-commerce is a good choice for small retail stores, as it provides the means for integrating business practices with those of existing customers. Ultimately, communication is improved and a competitive edge is established. There is also an economic advantage to investing in e-commerce. It costs less money to launch a functional e-commerce site than it does to open a brick-and-mortar facility. In addition, marketing materials can be extended or changed without cost.

It is important to note that small retailers are at a disadvantage in online shopping malls that also include large companies. Like brick-and-mortar malls, anchor tenants, like Macy's and Tiffany, get the best positions and the most traffic. Therefore, small stores selling similar products are often marginalized unless they can invest time and money to secure good placement. Small businesses must attract customers who buy, not just browse. In order to do so, they must be prepared to change their sales and marketing tactics to cater to their online customers.

A business that is unable or unwilling to do so is likely to fail in its e-commerce efforts. Conclusion The Internet and e-commerce present enormous opportunities to the jewelry industry, as they provide access to world markets, achieving the kind of market presence and penetration that has traditionally been exclusively available to larger companies (Enos, 2001). However, the future of e-commerce in this industry depends on much more than simply creating a Web site. When investing in e-commerce, retailers must look into the future and recognize the importance of client relationships.

A good online experience from both a marketing and a sales point-of-view makes a huge difference in successful e-commerce strategies. The Internet offers smaller companies, in particular, the opportunity to create and maintain a.