When a boutique owner says we would love to carry your line, there are two very different ways that usually works, and the difference between them can quietly decide whether your business grows or stalls. Wholesale means the shop buys your pieces upfront and resells them for a markup. Consignment means the shop displays your pieces, pays you only when something sells, and takes a cut of the price. Both can grow a brand, and both can break one if you pick the wrong model for where you are right now.
The decision comes down to one question first, before any talk of margins or branding: can you afford to wait for the money?
How wholesale works
You set a wholesale price, usually around half of retail, the shop buys the inventory, and the shop owns the risk from that point. You get paid on delivery or on net-30 terms, and you move on to the next order. The advantage is predictable cash flow: you know exactly what you earned when the order ships, and that money funds your next production run. The disadvantage is margin, and the fact that you lose direct control of how the pieces are priced, lit and displayed once they leave your studio. Our guide on low-MOQ wholesale covers the buy side; here you are the seller, negotiating from the other side of the table.
Wholesale suits brands that can produce in volume, that want stable revenue, and that are comfortable being one of many labels on a rack. Read more in dropshipping vs wholesale for the wider picture of distribution options, because the choice is rarely only between these two.
How consignment works
Your jewelry stays your property. The shop gives it display space and, typically, takes 30 to 50 percent of each sale when it happens. Unsold pieces come back to you at the end of the term. You keep the brand relationship, the retail price and the story, which some makers value deeply. But you also carry all the risk: the pieces could sit for months without selling, get damaged by handling, tarnish in a poorly lit window, or simply never find their customer. You only earn when they move, and until then your materials and labor are locked on someone else's shelf.
Consignment suits emerging makers who want exposure, who make small runs, and who can absorb a few months of waiting for payment. It is also a genuinely strong way to test whether a boutique's customers actually buy your style before you commit to a full wholesale order, because the sell-through data tells you more than any meeting ever could.
The cash-flow test and the contract
If producing the pieces already strains your budget, consignment is dangerous, because you will be out the cost of materials and labor with no income until the shop sells. Wholesale is safer in that position: the shop's purchase funds your next run. If you are established and want the brand control, consignment can be a growth lever, provided the contract is tight. Get it in writing: the exact retail price, the commission split, who insures the pieces, how often stock is counted, what happens to lost or damaged items, and how long the term runs. Pair this with clear return and exchange rules so the shop and the end customer both know the boundaries, and a single lost display box never turns into an argument nobody wins.
Reporting, payments and the admin trap
Consignment creates ongoing paperwork that wholesale does not. You will need a simple system to track which pieces are in which shop, what sold, and when you are paid. A shared spreadsheet updated by the boutique each month, with photos of the pieces still on display, prevents the slow disputes that quietly sour consignment relationships. Agree on a payment date rather than leaving it open-ended, because unsold stock that nobody counts for two quarters is stock you may never see again. Keep your own insurance for pieces out on loan, even when the shop says it carries coverage, and photograph every piece before it leaves your studio. These steps sound dull, but they are the difference between consignment as a profitable channel and consignment as a slow leak of inventory. Set a calendar reminder for the mid-term check-in, and never let a piece sit unsold for more than a full season without a conversation about moving it.
Why not both
Many smart brands use consignment as a trial and convert winners to wholesale. A shop that sells through your consignment rack has proven demand; that gives you leverage to negotiate a standing wholesale order at better terms than you could have demanded cold. Treat the first placement as market research, not as a long-term arrangement, and match the model to the money you have now. Brands that mix the two well treat consignment as a ladder toward wholesale, not as a place to settle.
For third-party reference, the Wikipedia article on moissanite details moissanite’s discovery, optical properties and use in jewellery.
Frequently Asked Questions
How do I verify a factory before placing a bulk order?
Request a production video, business license, export records and a paid sample run. A factory that accepts a 50-piece test order is usually a real manufacturer.
What payment terms do you offer?
30% T/T deposit with the balance against the bill of lading. This protects both sides on first orders and can move to net terms after a track record.
What is your normal reject rate?
3–5% under 10x loupe inspection for cast and set pieces. Defective units are replaced free in the next shipment.
Where is the factory located?
Wuzhou, Guangxi, China—the core lab-grown and moissanite manufacturing cluster. Shipments go via Guangzhou or Shenzhen ports.
