At first, the idea didn't seem eye-catching. He isn't worried about sales either. Vadon says the privately held company is not yet profitable and declines to speculate on when that magic day will come. The key to the business is the margins. Blue Nile cuts out virtually all of those costs, and trims more by purchasing directly from jewelry cutters in Israel, not from wholesalers in New York.
Inventory is a good example.
Retail jewelers often hold onto rings, bracelets, and pendants for as long as a year before selling them. In that time, Blue Nile turns its entire inventory over five or six times. Most retailers can't. For customers who want diamonds set, Blue Nile also designs a wide range of rings, necklaces, and earrings. THE FOUR C's.