Walking into the jewelry store to make that special purchase for yourself or a loved one used to be quite daunting. In the midst of the array of fine and expensive jewelry pieces stood the expert jeweler with all the facts about the quality of the craftsmanship and the true value of the products on display. When sharing this information with you the customer they sometimes made you feel that without their expert knowledge and advice you could not possibly be expected to make the right choice.

Not only did the jeweler have all the facts on the best value for money products, he was also the only outlet where you could make your purchase. Although there was an element of competition with other jewelry stores, most of it was centered round the layout of the store and the uniqueness of the goods on offer rather than on price only. The profit margins on the retail price could be as much as 75% but it was virtually impossible for the customer to negotiate any price reduction.

With the advent of the Internet a change took place in the market. This change not only affected the jewelry business but many other businesses and industries. Because of the nature of the Net, competition increased quickly and dramatically. More worrying for the jeweler was the fact that the customer could thoroughly research the products before making a purchase, making him less susceptible to any sort of sales pitch.

All of a sudden, customers were not quite so easy to control! Many of them now came into the jewelers store already informed about technical aspects such as carat weights, diamond colors and independent appraisals. They demanded shorter delivery times and lower prices and would compare these with other Mall and online stores to make sure they got the best deal.

The traditional jeweler was confronted by an enormous change to the way business was done. He would prefer to run his business as usual – buy highly profitable pieces of jewelry and display them to advantage in the store, greet the customer as they entered the shop and provide advice and support in their purchase.

These online jewelers turned the traditional jewelry business on its head. Much more customer focused, the new online stores were prepared to offer customer the information he needed to make a decision as well as matching products to the customer’s needs. They used this approach to attract customers to this new way of doing business. Because of their lower overheads they were also able to compete on prices offering customers a good deal.

Market competition due to the development and advancement of the Internet has met the customers needs. The jewelry buyer is much more informed and so able to demand a better deal because of this way of doing business.