If you’re looking for a great deal on jewelry, eBay is the place to be.
You can find some amazing deals on authentic pieces, often well below retail price. But why is eBay jewelry so cheap?
There are several reasons why eBay jewelry is so cheap: high competition among sellers, low overhead costs for eBay compared to the overhead of running a neighborhood store front, and the fact that many sellers are liquidating their inventory using the e-commerce platform rather than in a brick and mortar store.
In this article, we’ll discuss these factors in more detail and give you tips on how to buy jewelry on eBay safely and authentically.
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Why is eBay Jewelry So Cheap
eBay jewelry can be far less expensive than jewelry from brick and mortar store for several reasons that we will take a look at.
Cheap does not mean junk, although of course, there is that also.
While jewelry stores have their niche in a city or town for local area customers to buy at, they are also keenly aware that not expanding their business into the world wide web will mean being left behind in a much greater market.
Let’s look at the type of people that are found doing business on eBay:
Deal Seekers
Many people who are in the market for good jewelry have been demoralized by some of the prices that are typically found in brick and mortar jewelry stores.
They have been told that jewelry stores make 1000 times profit, and this profit is coming out of the customers pocket.
While this is simply not true, and may perhaps be a scare tactic to funnel sales into the e-commerce world, it is still likely to be a better deal than going into a store.
Deal Seekers are the common everyday people who want to minimize their cost.
They are also store merchants who hope to buy items, such as wholesale store supplies, gemstones and diamonds at lower costs.
Merchants who are willing to buy in bulk can find better deals when buying online because they can cut out the costs of the middle man along the way.
If you are a jewelry store, you will need gift boxes, bags, wrap, equipment and supplies.
Searching eBay for these items will undoubtedly result in lowering your overhead costs if you can find what you want due to the presence of heavy competition.
One of the things that a buyer will enjoy when shopping on eBay is the fact that probably 30% of the items listed have a “make an offer” button that you can use.
While there is almost always a “buy it now” price, and an opportunity also to bid against others for an item, this can be bypassed by being able to make an offer directly to the seller or simply being willing to use the “buy it now” price option.
How fun is that?!
Low Overhead Costs For Sellers on eBay
If you have items to sell in the open market, as a seller, you need to factor in your overhead costs vs the cost of doing business online.
If you live in a high rent district, you will pay dearly for the privilege of sitting in a store all day while waiting for sales.
This cost includes the amount for your monthly lease, utilities, security, employees, insurance and on and on it goes.
eBay will get a percentage of your sales, say 13%, but your monthly brick and mortar overhead cost can often take a much larger chunk whether or not you make any sales at all!
So for jewelry stores that sell their items on eBay, they are able to take advantage of a low overhead cost while being able to reach out to buyers all over the world that they would never had dreamed possible.
And do so at lower prices.
Sellers Liquidating Inventory
If you are a buyer, you will run across eBay merchants who are looking to get rid of items that have sat for ages in their brick and mortar stores.
You will surely get those items at far less pricing than normally.
You may also run across merchants who are looking to get out of business but who don’t want to go through the hassle of hiring and paying a company to liquidate their investment items for pennies on the dollar.
Selling on eBay will net more for a merchant in the long run who wants to liquidate, and yet at the same time, will cost a buyer much less for what they want to buy.
A merchant will no longer have to pay high overhead costs, and this means that they can reduce the cost of each item when selling online.
Merchants that sell fine jewelry online, and who are just wanting out of business to retire or to do something else, will calculate the value of their time as well.
They will no longer have to sit day after day waiting for customers to come into their store and are free to pursue other things while still being able to monitor sales from their e-commerce store.
While it may appear that they will suffer a bigger loss by “liquidating” their items, they may in fact, recover at least the cost of their inventory investment at the very least if they are not in a hurry.
Is Buying Jewelry On eBay Safe?
Buying jewelry on eBay is extremely safe.
eBay has buyer protection built into every transaction, including the shipping. If a buyer does not like what they received, or if the item did not reach them at all, or if it reached them but was damaged, then eBay will automatically refund the buyer after the seller has gotten the item back.
There are probably 10 reasons to choose from for returning an item for a refund, and get this, eBay will refund you for an item that a seller specifically says in the listing that they do not accept returns.
eBay’s opinion is that the buyer is always right, even when they are proven to be flat wrong.
While eBay is completely safe for a buyer, it is a hostile environment for the seller. It was not always that way, but it has gotten increasingly so.
A buyer can claim pretty much anything and will still get their refund back, regardless if the seller can prove to the contrary.
This is eBay’s business model, and keeps people coming back to buy because what can go wrong?
Sellers do not share that same sentiment.
Is Jewelry Real On eBay?
eBay has real jewelry and they also have costume jewelry too.
The listing should be very specific regarding what you will be buying, and there is a “contact the seller” option available to ask and get specific answers to questions if in doubt.
When buying real jewelry on eBay, the best practice would be to ask a lot of questions after reading the item description and the finer print.
You can challenge the seller to find out how they know for sure that the item is real, but be rest assured that even if it were found to be not real, eBay will allow a return and full refund including shipping costs if you paid for it.
If an item were not real, all you need to do is open a “return this item” case which is easy.
They will ask for the reason for the return and will authorize it, and then email you a return shipping label which you must print and affix on the return.
Failing to use eBay’s return shipping label will make the return guarantee void if the package does not arrive back to the seller.
Can You Sell Fake Jewelry On eBay?
You can sell fake jewelry on eBay because fake is not fraud unless it is represented as being real.
Fake jewelry, if it is simply jewelry that is made to look like the real thing, is not illegal or unethical to sell anywhere as long as it is being advertised as fake.
If you purchased something that was advertised as a 14K diamond pendant for example, and it was instead, 14K gold plated with cz’s, then that is fraud and you would get your money back.
In addition to this, the seller would not be able to sell and would have their account suspended for doing such things.
How Does eBay Authenticate Work?
eBay Authenticate came out in 2020 as a way to assure buyers that what they were purchasing was in fact authentic and not a knockoff of something.
How this works is that there is a staff of professional people who are hired to authenticate everything from watches, purses, cars and jewelry, to anything that is considered a high ticket item.
The seller is the one who pays for this service so that the buyer, once again, does not have to worry about anything since this authentication takes place within two days of the Ebay Authentication Center receiving the item.
This will delay the shipping process a little, but at least the buyer is assured that what they purchased is the real deal.
eBay charges the seller 20% of the sale price for this service, and the drawback for the seller is that even if the item is authenticated, the buyer can still return it for any reason.
Who Can Authenticate Jewelry?
Outside of eBay, jewelry can be authenticated by taking it to your trusted jeweler. If there are any doubts, it can then be sent out to a Certified Graduate Gemologist for authentication and appraisal too.
How To Buy Jewelry On eBay Safely
To buy jewelry on eBay safely, you simply open an account and start the shopping process, taking advantage of the buyer protection and money back refunds policy.
You can be assured of buying safely on eBay simply because they have a Buyer Money Back Guarantee for all purchases.
If something turns out to be fake, you then open a return request and eBay takes it from that point.
You state the reason for your return and you will be sure to be refunded as soon as the tracking indicates that the seller has received the item back.
If you want to buy on eBay, simply open an account and you can begin shopping just as soon as your account is approved.
FAQ’s About eBay Jewelry
What Happens if eBay seller sends fake jewelry?
If an eBay seller sends fake jewelry and the buyer opens a return for refund, then the seller will be investigated and suspended. The buyer will always get their money back, as long as the item is sent back to the seller.
Is eBay gold legit?
eBay gold is very much legit, unless it is being sold as costume jewelry.
Always take your item that you purchased to a jewelry store or pawn shop to have it checked for being real, and also to check if it is what you expected right down to the gram weight.
Are gems on eBay fake?
There are indeed fake gems on eBay along with the real ones. eBay is a marketplace where people can sell either simulated gems or real gems.
The listing must be clear about which is which and you can always message the seller if in doubt.
Generally speaking, a seller would not get anywhere if they were selling fake gems advertised and listed as being real ones.
Once found out, they will be suspended and the buyer will always be refunded by eBay.
Is it safe to buy diamonds from eBay?
Buying diamonds on eBay is usually safe, because if you do not like what you purchased you can always get a refund.
Oftentimes a seller will have a return policy or else they will clearly state that “seller accepts no returns.”
This is simply not honored if a buyer wants to return an item, they can return items regardless of the seller’s return policy.
The only thing a buyer will risk is the time it takes to buy and return an item.
Final Thoughts
Buyers are KING on eBay.
Virtually nothing is designed to protect the seller.
Yet sellers still use eBay simply because there is only 13% overhead cost for selling compared to leasing a brick and mortar store, and there are hundreds of millions of buyers world wide who will see their items.
These two facts make the risks manageable.
The percentage of problem buyers has not yet caused a mass exodus of sellers from using eBay, but that can change.