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Jewelry Retailers Facing Tough Competition from Online Jewelers

12/24/2008 10:35:29 AM  Lucy chandler

undefinedIt used to be that people shopping for diamond jewelry might go online to check out pricing before they went into the brick-and-mortar stores to buy, but things are quickly changing, according to the Israeli Diamond Portal.  Now shoppers are more confident with online stores, who offer considerable discounts and liberal return policies.

Now, with money being the issue on everyone's mind, shoppers are looking for ways to get quality products for less money.  Searching on the internet was the best way to find the store with the best prices.  Then shoppers would get in their cars, go to the store, and make a purchase.  Online retailers, without the overhead of maintaining a brick-and-mortar shop--or chain of shops--can offer the same or better quality diamonds, and for up to half the price. 

One of the advantages that online jewelers has is the ability to track the online shopping behaviors of their clients.  Large websites can closely analyze activity--what the person clicked on, how long they stayed at each page, how many pages they viewed before leaving the website.  Regular stores have no such way to see what the consumer is most attracted to, unless they want to spend a great deal of money on surveys conducted by commercial companies.  A large online retailer can see--in real time--whether more people clicked on a particular style of banner, an ad, or a product.  They can then tailor their websites to cater to the consumers' behaviors.

With the advertising advantages, the trackability, and the lower prices, online jewelers are making a dent in the market, and small businesses and chains are feeling the crunch.



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