Online Trading: A must in the new decade
Known for more than a century as a face-to-face business sealed with a handshake, the diamond industry has radically transformed in the past few decades into a global marketplace where diamonds worth millions of dollars are traded online daily.
Today, diamond markets are truly global, with major trading centers in India, the United States, Israel, China, and Europe. Yet the ability for buyers and sellers in these locations to trade without travelling in person – and transporting priceless packages – is limitless thanks to the internet.
There are great benefits for all aspects of the supply chain to trading diamonds digitally. It helps traders track inventory, and makes it easier to adjust pricing to reflect market trends and to be more competitive.
Manufacturers can list all the diamonds they have to sell, giving them tremendous reach. Dealers can buy and sell stones throughout the world, including locations they may never have had access to before.
Retailers have a much larger resource to choose the diamonds they want to buy, with greater ability to compare and negotiate price from a big community of competitive suppliers. The transparency of online diamond trading gives buyers better price information that can help them to monitor expenses. They can keep a smaller inventory with the advantages of lower credit, storage and security costs.
Assuaging Doubts
Despite the advantages of trading diamonds online, security is often cited as a concern. However, technology has come a long way, and most e-commerce and financial websites today are hosted securely with password protection and SSL payment certificates. That shouldn’t dissuade you, however from doing your due diligence when operating online – i.e. ensuring passwords are secure, following up on orders and payments, and checking sellers’ credentials and ratings.
Many people are wary of buying diamonds they can’t examine first. Technology has quelled this angst too, with advanced high-resolution images and 360° video capability that enables traders to inspect a diamond from every angle on screen. Media showing every angle, highlighting flaws (like scratched stones, bent prongs, worn shanks), and notable details (like special design features, fineness or maker’s marks, artist signatures) accompany most diamonds on legitimate trading platforms. Grading reports from reputable gem laboratories, and a wealth of data at your fingertips also help to lessen anxiety and mitigate risk.
Further concerns about the potential for fraud and theft that are often associated with online trading are alleviated when trading on a reputable networks like RapNet, that vet their community and only allow entry to verified industry members. Though even with these measures implemented, due diligence is always recommended.
Trusted Platform
At the end of the day, online trading is merely a digitized version of offline trading conducted electronically through an internet-based trading platform. So, the biggest caveat to trading diamonds online should be finding a trusted network.
When choosing a diamond-trading platform, look out for a trusted platform that advocates transparency and ethical practices. It should enforce a strict vetting process, and ensure suppliers accurately represent their diamonds and fully disclose all information about the products they sell, with action taken against those who do not comply.
Other considerations to take into account when choosing the right trading platform for your business include; the size of the network, whether fees are subscription-based or based on commissions, how they vet their members and whether the platform follows an ethical code that is enforced to protect your transactions. Established and reputable platforms offer global reach, with direct communication between buyers and sellers, no transaction fees and useful diamond pricing information.
When deciding on a trading network, it’s critical to compare features, as well as check a trading network’s ethical values and best practices, industry references, and user-reviews. Take the time to research platforms before signing on. Ideally, it’s a network that has longevity and is in good standing with third party sources and previous buyers.
The most effective buyers and sellers are the most informed. When buying diamonds and jewelry online, do your due diligence. Read each listing carefully. Review all reports and paperwork provided, and make sure you understand the seller’s terms of sale.
Trading diamonds on a reputable platform can empower supply chain stakeholders with greater sales efficiencies, transparency and outreach, and lower inventory, overhead and costs.
The process of starting to trade online may seem daunting, however the same care and planning you take towards your offline business applies to the online paradigm. Take the necessary time and planning to choose the best platform for your business needs.
Get 3 tips from a RapNet specialist on how to you reap the benefits of online trading and start trading diamonds and jewelry online like a pro! https://info.rapnet.com/3-tips-to-master-online-diamond-trading
