Jewelry is usually a high-priced item that customers purchase for special occasions like birthdays and anniversaries.
With these two points comes the necessity for sellers to keep a constant eye on their jewelry inventory levels to fill customer orders quickly and smoothly.
One thing you should never forget as a jewelry store owner is how important inventory management is.
To help you take on this challenge, we’re going to give you a step-by-step guide to solving all of your problems with our jewelry inventory template, including our best tips for maintaining a happy and healthy store.
Why is Jewelry Inventory Management Important for Your Business?
As a jewelry store owner, you need to have a system that keeps track of your inventory.
Otherwise, you may lose money when you believe that you are making it.
Here are a few strong reasons why jewelry inventory management is essential for your business:
You will have no idea what is selling
If you are not tracking your sales, you will have no idea which items are selling and which ones aren’t. This can lead to stocking up on items that people rarely purchase while leaving other things out of stock altogether.
You can miss out on opportunities for purchase discounts
It will be hard for you to determine how many of each item you need at each time if you are not tracking your inventory. As a result, it may be challenging for you to purchase large orders at once for discounts.
You will stay aligned with the latest jewelry trends
Customers expect to see inventory that fits their needs, and they want it now. To manage your jewelry inventory correctly, you need to know what your customers are looking for, when they’re looking for it, and how much you need to have on hand to meet their needs.
Handling returns can become complicated
It may become difficult to handle returns. You will have no way of determining exactly what was returned and where it was returned without proper inventory management skills. In general, this can make returns very difficult, as well as make fraudulent claims more likely.
Makes insurance claims easier
If anything happens to your store and you lose or damage some of your jewelry, you will need a comprehensive inventory system to make insurance claims. When you have an updated record of all the products in your store, it will be easier to file claims and get compensated for the damages.
An organized inventory system makes it easier to find out which items are missing and which are damaged so that you can claim compensation for them promptly.
Shields your business against fraud and theft
Theft and fraud are major concerns for any business owner, especially those who deal with expensive items like jewelry.
It is essential to identify missing pieces quickly to take appropriate action before it is too late.
Jewelry inventory management software will help you do that. For example, if an employee has stolen one of your valuable pieces, they won’t be able to sell it if they know that you have already identified the missing piece.
Key Steps to Manage Your Jewelry Business Inventory Efficiently
It’s not just about keeping track of how many pieces you have—it’s about making sure you know what their value is, where they are in the production pipeline, and whether or not you need more of that particular type of jewelry in stock.
This is easier said than done, so we’ve compiled some handy tips to help you manage jewelry inventory effectively.
Hire a jewelry inventory control specialist
When it comes to managing jewelry inventory, you need someone who knows what they’re doing. Make sure the person you hire has extensive experience in the field. It’s best to hire a jewelry inventory specialist who has worked in many other jewelry stores in order to know how the industry operates.
Additionally, they can recommend products based on your sales volume that would work well in your store.
Create a master jewelry inventory list
Prepare a master list of all items in your inventory.
You should also click photos of the products to identify them quickly.
This inventory list should contain the details about every piece of jewelry you have on hand, including the source, cost, selling price, and other important information like weight and dimensions.
Catalog your inventory list in digital format using either of the 3 options :
- jewelry inventory management software,
- Google Sheets or Excel inventory template or
- a custom template that brings the best of both together like this one.
Make use of jewelry organizers
Having the right tools to organize your jewelry inventory can help ensure that you have what you need on hand when it’s time to sell. Look for jewelry storage solutions that fit your business model and the types of jewelry you sell.
If you specialize in jewelry made with beads and other small materials, consider purchasing a bead organizer. This type of box is designed to keep track of inventory without losing pieces.
If your business sells earrings and necklaces, look for an organizer that allows you to store them together.
Setup reordering reminders
When you have jewelry inventory that you sell, it’s essential to keep track of how many items you have left and how quickly those items are selling. If you don’t know how much inventory you have or how fast you’re selling it, it can be tough to decide when to reorder a product.
We recommend setting up reorder reminders based on available jewelry inventory quantity and sales data. In this way, your customers can always access their favorite products.
Audit periodically to avoid any frauds
Every jewelry store and boutique can be exposed to fraud by employees. This is because jewelry stores handle large amounts of cash, and the products themselves have a high value.
Incorporating a strict auditing process into your system and jewelry business can help you identify potential frauds before they occur.
Take precautionary steps like ringing up customers from the register if it’s empty to find out which one is typing in numbers or closely watching if more than one person is handling your goods at any given time.
Closing Thoughts on Jewelry Store Inventory Management
It’s not just an option for shop owners to have a jewelry inventory system – it’s necessary to avoid losing track of your valuable inventory. If you don’t want to deal with lost or stolen items, inaccurate information stored in multiple files that only your employees can access, then now is the right time to invest in a jewelry management system.
We built one ourselves that combines the best of expensive inventory management software and basic Excel inventory templates. You can check it out here.
Here is a demo video showcasing the power of this template.