I have always wanted to enter the retail space by selling costume jewelry; statement pieces! I want to have an e-commerce site that will release jewelry collections consisting on 6 pieces of diff types of jewelry made by small business, original pieces. Then customers can choose 3 pieces from each collection on a monthly basis and pay $40-$50 per month for it.
For example: in August release the "Birthday Babe collection consisting of 6 pieces. Customers can only choose 4 and get to pay one flat fee for 3 high quality pieces.
I have several years of experience in marketing and optimization in the eCommerce space for one of the largest online jewelry retailers in the U.S. I also have several year of experience working with online retailers that operate under a subscription models.
In order to answer your question, you will need to consider the following:
Will your subscription revenue generate enough income to maintain the operational strains of this business model and be profitable?
If you do not know the answer to this, you need to work backwards to arrive at the monthly pricing for your subscription service.
Some things to consider:
1. Cost associated with operational logistics like shipping and fulfillment (assuming customers have to receive and ship the jewelry back to you)
2. Carrying costs associated with holding on to inventory on consignment. (assuming you will not own the jewelry outright) This may come with other contingencies like having to carry insurance and the operational aspects that will help you handle recovery of lost / unreturned inventory, etc.
3. Costs associated with building a transactional platform that is built for the monthly activity you will have with a subscriptions service. If you take Macy's for example, most customers place online orders 4 times per year or so. In your case, the nature of your model requires a different platform as you will be taking recurring payments, arranging returns, maintaining credit card / payment information, etc. In short, its a different animal that your startup eCommerce type platform.
If you'd like to get more details or insights I'd be happy to hop on a call and chat.
Whether this can be a successful business venture or not is something that could be answered by knowing how meticulous and pragmatic your planning is. It's not ideas that are bad, but execution. And, execution pillion rides the scooter of planning, strategy, and tactics.
Talking about your piece of information, there're too many points to think through and understand. It ain't just about you offering some 3-4 items on month-on-month basis at some $$ price point. It's also about returning policy, operational cost involved, breakeven analysis, and envisioning the rate of growth.
As an e-commerce venture you don't sell a product but service. And, knowing services cost could get tricky at times. Doesn't matter how good your product/service is, it won't cut through customers as long as the perceived value of those product/service don't outweighs the cost for a customer.
Let me know if there's something that might require a tete-a-tete between us.
The site is fairly easy to make.
BUT
> Where is traffic coming from?
> Why not use etsy or a similar site?
> Will you be making the pieces or buying them from someone else? Can you keep up with demand if things do take off?
> Do you know about branding?
> Will the cost of producing all the pieces for customers to pick from kill your business? Shipping costs?
And most critical:
> Have you identified a target market that has $50/mo to spend on luxury products like this? Do you know how to cheaply and consistently get in front of them?
If not, your idea won't work. Putting a website up by itself is like a billboard in the desert.
I think the business has potential given popularity of jewelry and subscription models. I would want to see confirmation of the subscription price by examining other companies to validate the price point and then test through surveys, etc before committing capital. Somewhat concerned that customer has to return 3 pieces of the monthly six. That is Real friction that I would try to avoid. Also do not believe using small craftsman to produce jewelry will allow scaling. I think eventually company needs factories to support demand and should switch to licensing designs from small craftsmen.
I surely believe that your venture will be successful, my good wishes are with you, do keep the following points in mind before you release ‘Birthday Babe’ Collection.
1. Transform into the Best Business: If an organisation wants to stay long in the race, it must begin addressing problems of its audience. When a company keeps modifying its products as per the customers’ requirements, then there is less probability of losing its loyal customers. Such types of companies manage to survive fiascos and come out even stronger. To become adaptive, a company must change with the shifting times. Market knowledge is a prerequisite while adopting any survival technique. In the absence of it, a business grapples to survive in a crisis like situation.
2. Secure Business with Cybersecurity: In today’s digital era, it is essential for businesses to operate digitally. While running the online business, embracing technological advancements is also crucial. If the business does not adopt cybersecurity practices, then there are chances that hackers can harm the business. Through this, the company will become dysfunctional and avert working adequately. Thus, every company should keep an eye on the latest technology and procure it to keep the business updated.
3. Engaged the Customers in Your Content: A business owner possesses immense knowledge about the industry he is operating in. Thus, there cannot be another good advocate of the product besides him. The entrepreneur must start blogging to attract an audience and direct it toward the company's offerings. Apart from being promotional, the content can be informational also giving industry insights to the people. This process of delivering knowledge should not be stopped and continue to offer knowledge. To begin this, an entrepreneur can start creating blog posts. Through blogging, he can connect with various customers and build their confidence into him. These customers can later transform into prospective customers for the business. Therefore, creating blog posts and other content forms is important to create a large nexus.
4. Take Customer Feedback into Consideration: Customers are imperative for a business' survival. Thus, it is advised to stay close to the audience and take their feedback seriously. Recommendations relating to the product modifications should be adopted as new product features aid customers in serving better. The feedback also helps know customer insights and predict market trends as well as forthcoming changes. This leads to the development of new products and services. The above-cited tips should be followed by the businesses to build a successful company. These tips can help decrease hassles and attain success faster.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
