The jewelry market is jammed full of beautiful diamonds, pearls, and other great adornment ranging in price from a few dollars to tens of thousands. So buying jewelry from wholesale dealers, either through a catalog or online auction, can be a great way to save money.

Whether you’re looking at jewelry-specific retailers or online sites that specialize in overstock and wholesale liquidations, you’ll need to have a good understanding of the product and the process before you buy.

In this article, we’ll cover the benefits and disadvantages of online purchasing as well as hot tips you can use to protect yourself and your jewelry investment.

When purchasing wholesale jewelry either online or through mail order, you won’t be able to inspect the product with your own eyes. Because cut, proportion and color are so important in determining the value of the product, you’ll need to look for a retailer that’s certified, trusted and can guarantee the product they’re selling.

Start by looking for jewelers that offer documentation on the stone from the GIA (Gemological Institute of America) if you’re concerned about the value of the stone being misrepresented. Keep reading for more tips on how to protect your online jewelry purchase.

1. How can I buy wholesale products safely?

Look for a retailer that outlines every facet and aspect of the piece and actually tries to inform you, the buyer, rather than dazzle you with big words and uninformative adjectives. You want sites that offer descriptions of the stones and pieces that are written or cleared either by certified gemologists or jewelry experts.

2. Where can I learn more?

If you’re not comfortable with your knowledge level, try visiting a traditional, retail jeweler to get an idea of non-wholesale prices, but also stone terminology and styles.

3. How can I protect myself on auction sites?

When purchasing wholesale jewelry through an auction site, always read the fine print and study the auction’s terms and conditions thoroughly. Make sure that you can return the item if you’re not completely satisfied, and be sure to read a seller’s reviews.

Once you’ve purchased and received the item, take it to an appraiser immediately to make sure the stone matches the quality assessment given to you by the seller.

4. What is escrow payment?

For large-scale items, you may want to consider putting the funds in escrow. This means a neutral third party will hold the payment in tow until the jewelry has been assessed by an independent appraiser.

Once the appraisal is finished, the funds go to the seller and the piece goes to the buyer. This method typically comes with a small service fee, but can be a very effective tool to protect against potential fraud.

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