Keeping up with shopper demands and shifting trade, tariff, and supply chain circumstances may send you looking for new suppliers from time to time. Your relationship with your suppliers can make or break your business. Whether you run a local jewelry store, operate online, or sell wholesale, working with the wrong supplier can lead to poor product quality, delivery delays, or even legal headaches. As a jewelry retailer, protecting your business means asking smart questions up front and setting clear expectations.
Here are five questions you should ask a new supplier before entering into a partnership—plus an important reminder about protecting your business with the right insurance coverage.
1. “Can You Provide Documentation About Your Sourcing and Ethics Practices?”
Today’s customers demand transparency. They care where their jewelry comes from and whether it has been ethically sourced. You should, too. More than just an ethical move, transparency builds trust and loyalty, so you need to know, vet, and communicate your sourcing to your customers.
Before placing any orders, ask your supplier for documentation about their sourcing practices. Do they comply with the Kimberley Process to prevent conflict diamonds? Are they members of the Responsible Jewellery Council (RJC)? Do they use recycled metals or offer traceable colored stones?
Why it matters: As a jewelry retailer, your brand reputation hinges on trust. If you’re promoting conflict-free diamonds or sustainable jewelry, you need to back up those claims with verified supply chain information.
2. “What Happens If There’s a Quality Issue or Delivery Delay?”
Even the best suppliers occasionally make mistakes. The question is: How do they handle them?
Ask new suppliers about their policies on product defects, shipping delays, and order cancellations. Who’s responsible if a custom piece arrives damaged or a bridal set shows up two weeks late? Can you return misrepresented or unsellable merchandise?
Why it matters: Ambiguity leads to frustration. Clear return and dispute policies help protect your jewelry business from unnecessary losses and keep your customer experience smooth.
3. “Who Is Responsible for Goods in Transit or on Consignment?”
Shipping and consignment are common in the jewelry business, but they come with real risk, especially when you’re dealing with high-value items.
Ask your supplier:
- Do you insure goods in transit?
- What about items on memo or consignment?
- Can you provide a certificate of insurance?
You also need to understand your own responsibilities. Many suppliers assume you’re covering the items once they leave their hands.
Why it matters: Lost or stolen inventory can be financially devastating if you’re not covered. Which leads to our next point…
Protect Your Jewelry Business with the Right Insurance
No matter how carefully you vet your suppliers, things can go wrong. A misdelivered package. A theft during transit. A supplier who fails to disclose that their “natural” diamonds are lab-grown.
That’s why jewelry retailers need specialized jeweler insurance, not just a basic business policy.
Jewelers block insurance, for example, can protect your inventory:
- In-store
- In transit
- At trade shows
- On memo or consignment
- Even in the care of an employee or courier
Don’t assume your supplier’s insurance will cover your loss. It usually won’t. Review your policy with an insurance provider who understands the risks specific to jewelry businesses. It’s one of the smartest moves you can make to protect your store’s financial health.
4. “Do You Sell to Other Retailers in My Area?”
There are more than 7,000 jewelry stores in California. Standing out from the competition already takes effort, so when it comes to inventory, you don’t want to be competing with five other stores down the street selling the exact same pendant or watch.
Ask whether your supplier offers geographic exclusivity or custom/private-label options. Some suppliers will even limit distribution within a certain zip code or radius.
Why it matters: This protects your margins and helps you build a distinct, recognizable inventory that keeps customers coming back.
5. “What Are Your Payment, Return, and Buy-Back Terms?”
Finally, clarify the financial side of your relationship. Ask about:
- Payment timelines (Net 30? Net 60?)
- Minimum order quantities
- Restocking fees or return windows
- Whether they’ll buy back unsold inventory
If you’re offered memo terms, get everything in writing, including liability, duration, and return policies.
Why it matters: These details directly impact your cash flow, inventory planning, and long-term profitability as a jewelry retailer.
Final Thoughts: Supplier Questions = Business Protection
Choosing the right suppliers is about more than finding on-trend or unique merchandise. It’s about building reliable, ethical, and financially sound partnerships that help your jewelry store thrive. By asking these five questions, and making sure you have the right jeweler insurance coverage, you’ll be better equipped to protect your jewelry business from costly surprises.
Looking for more ways to safeguard your store? Contact us to learn how specialty insurance can protect jewelry retailers from supplier-related risks, theft, and more.
