Customized Shopping: How Jewelry Brands are Adapting to the Digital Age

With the advancement of technology, online shopping has become a preferred way for consumers to purchase jewelry. As delivery times have become faster and product visualizations have improved, people are increasingly comfortable making big-ticket purchases online. However, with rising gold prices and price being a sticking point for many consumers, retailers and manufacturers need to keep an eye on their overhead costs such as marketing, distribution, and production.

One way to reduce overhead costs and attract new customers is by using digital features to create customized user experiences. E-commerce sales are taking an ever-growing share of total U.S. retail sales, with jewelry being no exception. In the first quarter of 2024, just under 16% of all retail sales transactions were made online compared to about 7% in 2005.

Online jewelry sales are particularly strong during the holiday season, with rings, earrings, necklaces and other adornments among the top-selling gifts on Cyber Monday in 2023. Cyber Monday online sales were 99% higher than an average day the prior month according to an Adobe e-commerce industry report. The industry benefited from this boost after a pandemic-era decline in jewelry and watch sales but plateaued in 2023 with mixed forecasts for 2024 with some top online retailers predicting a downturn in e-commerce sales.

Moving forward sustainability will be key for the fine jewelry and watches industry as predicted in a McKinsey report from 2021 which states that sustainability could influence up to 30% of fine jewelry sales by 2025 – tripling from 2019 numbers. Five ways that jewel businesses are evolving as consumers increasingly shop online will be discussed further.