With the advent of the ever growing internet diamond retail market the concept of drop shipping has become prevalent. Drop shipping has enabled websites to give the appearance of a fully stocked retail business without the costs, overheads, knowledge or experience associated with running a business.
"Drop shipping is a supply chain managment technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer . The retailers make their profit on the difference between the wholesale and retail price." Wikipedia
Drop shipping has opened the door for many new dealers, markets and also scams.
What about Diamond Internet Dealers?
Drop shipping has reached the diamond industry and there are now an ever increasing number of diamond websites and diamond internet dealers selling "virtual diamonds".
You might have seen those diamond websites that advertise over 100,000 diamonds online at less than wholesale prices or up to 75% off retail prices. Have you ever wondered about this and can it be true? I bet you have. How can any product be sold for less than actual wholesale price? Does it mean that they are selling for cost or without any profit? Well you know the answer to that.
When it comes to Diamond Internet Dealers, Diamond Websites or whatever you would like to refer to them the one thing in common with the majority is that they have listed thousands if not tens of thousands of diamonds that are not in stock or have never seen.
Many times the same diamond listing will appear on multiple websites from different vendors. Truthfully, none of these vendors owns the loose diamond, much less have it in stock. They merely act as a drop-shipper to sell diamonds. These diamond internet dealers sometime never physically see the diamond they are selling or have sold so, they are unable to offer any help with questions you may have about the diamond. Many of these internet diamond dealers have very little knowledge about diamonds altogether and come from other career backgrounds.
These diamond websites dealers have simply downloaded lists of diamonds from overseas suppliers who have allowed them to do so, in the hope that the diamond might be sold by someone, somewhere in the world. If a consumer requests or makes an expression of interest to the diamond internet dealer about a diamond this diamond internet dealer or so called diamond wholesaler then just emails the actual owner and asks if it is still available and could they send it out on 'memo' or approval' as they have a client who is interested.
The diamond is then shipped to the diamond dealer for their customer to view or purchase. If the diamond does not meet with the customers expectations they are then able to send it back to the supplier.
So what does this really mean?
I guess you could say these diamond internet dealers or diamond websites are actually middlemen and are trying to sell diamonds that they do not own just by placing a margin or by making a percentage margin, like a brokerage fee. All very nice if you can do business like this, as it eliminates having to hold stock, know about the product you are selling and you really do not have to be even qualified or have professional training - just be able to sell.
This is why E-Bay has been so successful - no stock , no worries, no money , no worries, no backgorund, no worries - just find some drop ship supplier or a real wholesaler who will let you use their stock lists for your own business and take orders or sales for items you do not own or have never seen and collect a profit. These type of businesses offer very little customer service, product information or accountability due to their lack of knowledge.
How can any diamond internet dealer or diamond website vendor ethically comment on the diamond, give a professional opinion or compare it with another diamond if the they have never seen the diamond?
It's ridiculous and unprofessional.
To avoid situations like this arising Diamond Imports has this policy -
ALL OUR DIAMONDS ARE IN STOCK unless marked sold.
In addition with the exception of specially requested indent orders, all the diamonds listed on our website are in stock and we own. You will not find our diamonds being listed or sold on another website. We can therefore ethically comment on them, give you honest and professional advice and as a consumer you are able to view them before you buy.
Diamond Imports was the first online diamond website to install the diamond certificate confirmation facility. This enables you to confirm directly with the diamond grading laboratory that your diamond has been graded correctly and is genuine.
Diamond Imports was the first in Australia to have actual microscope diamond photographs showing the facets, inclusions and the face up pattern of the diamond online.
Diamond Imports was the first in Australia to provide a scanned copy of the diamond certificate or grading report for viewing online.
For more information on drop shipping: http://en.wikipedia.org/wiki/Drop_shipping
By Daniel Katz, GG & Kirsten Katz
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Diamond Imports
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