In a market as highly fragmented as the global jewelry industry, sourcing precious stones can be an extremely difficult undertaking for retail buyers.
Jewelers typically need to contact various sellers, often with no guarantee of available stock. And even when they find what they need, shipping and transaction costs become a hassle, especially when dealing with international suppliers.
Overall, it’s a cumbersome, time-consuming, unreliable and costly process, James Morgan, chief product officer at business-to-business (B2B) jewelry marketplace Nivoda, told PYMNTS in a recent interview.
According to Morgan, who previously led Amazon’s Prime program in Europe, helping businesses overcome these challenges motivated the launch of Nivoda in 2019, with the goal of becoming “the everything store” for the global gems and jewelry market.
Today, the one-stop-shop has nearly 2 million diamonds and gemstones listed from suppliers in over 60 countries, who simply upload their selection, including certifications, pricing details and 3D video and images of their products on the site.
From there, it’s just as easy as shopping on Amazon, he said: filter and browse the listings, place your order, receive an invoice, make the payment and get your item within a few days.
To streamline the purchasing process, Nivoda handles all aspects of fulfillment internally, including logistics, financial technology and operations. Morgan said this strategy has significantly enhanced the process, making it easier, simpler and more cost-effective for customers.
“We’ve actually done what Amazon did with their Fulfillment by Amazon (FBA) program and taken some of that inventory and put it closer to our customers in Europe. So, there’s some that can actually be sourced with a delivery time of just one to two days,” he said.
According to Morgan, the key to running a simple yet effective marketplace is optimizing platform software and process automation via multiple third-party partnerships.
These deals extend to various aspects such as payments, where Nivoda offers flexible terms of 30 to 60 days through both in-house solutions and embedded finance providers. Additionally, partnerships with insurance firms facilitate seamless transactions and deliveries, utilizing API integration for swift indemnification processes.
Nivoda has also begun collaborating with virtual wallet providers, an important move given its global customer and supplier base, said Morgan. This international network introduces complexities that virtual wallets help mitigate, reducing transaction costs and streamlining cross-border transactions for both Nivoda and its customers.
“Customers want payment convenience, [whether it’s paying with cards, bank transfers or with checks]. They also want to do all of those things and enjoy the advantage of 30-day or 60-day payment terms [which is why we provide] the most convenient payment methods on the terms that best suits their business,” Morgan noted.
Collaborations with certification and appraisal institutes like the Gemological Institute of America (GIA) and the International Gemological Institute (IGI) hold significant weight in Nivoda’s business model, and according to Morgan, serve as a cornerstone for building customer trust.
Particularly, GIA’s plans to transition all paper reports to digital format by 2025 aligns seamlessly with Nivoda’s digital-centric approach, forming an integral part of its operations since the inception of the online marketplace.
Looking ahead, Morgan pointed to the U.S., which holds about 60% of the global diamond market share, as a key focus area for the U.K.-based company as it anticipates significant returns from the payments and financial technology investments made there over the last 12 to 18 months.
As Morgan said, “It is the largest part of our business today and the product roadmap that I lead is very much focused on improving the customer experience for our business customers in the United States.”
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