Sales Strategy
Jewelry Markup Explained: From Wholesale Pricing to Retail Strategy October 09, 2025 (0 comments)
Samut Prakan, Thailand--Understanding jewelry markup is key to profitability. Markup is the difference between the wholesale price retailers pay and the retail price customers see. Wholesale reflects bulk purchases from suppliers; retail pricing covers operating costs and profit.
[Image via iStock.com/Kwangmoozaa]
According to the article by 925 Silver Jewelry, buying silver hoop earrings for $10 and selling them for $30 yields a $20 markup—200%. Pricing too high risks losing customers; pricing too low erodes margins.
Bulk Buying & Its Pricing Impact
According to the article, larger orders reduce the per-piece cost, allowing for either higher margins or more competitive retail prices. A retailer might pay $10 each for 100 units, but $8 each for 500 units. This economy of scale supports better pricing; however, the article cautions that larger purchases require more capital and storage management to avoid overstocking.
What Drives Markup
Materials & Craftsmanship. Materials and artistry shape markup potential. Silver studs may see markups of 100–150%; diamond or gold pieces can reach markups of 300% or more due to their intrinsic value and craftsmanship.
Brand & Market Position. As stated in the post, established brands can command higher markups due to trust and perceived quality. Lesser-known sellers may need sharper pricing.
Demand & Competition. High-demand styles can sustain higher markups, while saturated categories often require tighter pricing.
Import Duties & HS Codes. Customs costs must be priced in. Silver jewelry commonly uses HS Code 7113.11.0000, with other codes varying depending on the material and jurisdiction. These classifications impact the landed cost and final retail price.
Calculating & Adjusting Markup
The article highlights the basic formula:
Retail Price = Wholesale Price + (Wholesale Price × Markup Percentage)
If earrings cost $25 wholesale and you apply a 150% markup, retail is $62.50.
The article highlights three pricing approaches: a flat markup, where one consistent percentage is applied to all jewelry items; a tiered markup, which assigns different rates based on category, material, or design complexity; and a dynamic markup, which changes according to demand, season, or sales performance.
Learn more in this post by 925 Silver Jewelry.