Have I Been Ripped-Off?

[juliew0205]

Ok, so I'm in the process of purchasing a 1.00 ct FYD. It is currently being put in a setting I chose from the same jeweler (online). While I am waiting, I have been looking at other FYDs online to compare quality and price with the ring I am buying. I happened to be on eBay browsing at the stones when I came across one that was very similar to the one I'm getting. It had the GIA report number, so I did a report check on it. IT IS THE SAME DIAMOND! The listing is considered 'active'. The eBay seller's (they call themselves wholesalers) site does warn to check with them first before making a purchase to check availability.

Am I getting ripped-off, or is this something that jeweler's do - buying from others to turn around and sell? I don't know what to do. I did contact the seller on eBay to find out if the stone is still 'available'. I'm just waiting for their answer.

Thanks for any help,
Julie

 

[FrekeChild]

Some dealers deal with something called "drop shipping". It's basically when at least one vendor has something listed for sale, but the actual item is not physically with them - it's with a drop shipper who has the item physically. The customer buys through the vendor, the vendor tells the drop shipper to ship the item, and the customer receives it. Blue Nile does this all of the time. Master cut gems has some gems on his site that he drop ships for other vendors.

So I would guess that is what is going on here and not jump to conclusions just yet.

 

[RandG]

Your jeweler most likely sourced the stone on Rap which happens with most diamonds that are bought and sold. The ebay seller may be the owner of the stone or another broker sourcing the stone on Rap but has lower overhead so he can offer the stone at a lower price than your jeweler. This is extremely common and a reason why getting the best deal is predicated on buying a stone from the source, and not a broker or middleman. Before buying, I always try to determine how many layers of margin am I dealing with. Too many middlemen and I walk away.

It's amazing that you found this. If the price differential is significant, I would ask the jeweler for a price concession on the stone. If its marginal, I would probably let it go, in recognition that the jeweler did have some cost in sourcing the stone by way of his time.

 

[chrono]

It may seem as though you are being ripped-off, but unfortunately, I've seen many vendors do this. Some are drop-shippers and some are stone flippers. If the price difference is significant, I would be miffed and I would ask for a discount, understanding that the jeweller has some measure of overhead to account for. If it is a stone flipper, I could very well have done the same legwork myself and pocketed the savings. Not knowing who the eBay vendor and online jeweller vendors are, the scenario could also be different in that the jeweller doesn't usually keep a stock, so he buys from elsewhere for resale (as middle man). If the eBay vendor is truly a wholesaler, then they would not sell directly to the public (you) and only to the trade (jeweller).

 

[juliew0205]

Thank you all for your replies. What you say makes a lot of sense; I think I just panicked. I did call the eBay seller this morning and was told that the stone was no longer available. I'm assuming that the jeweler did in fact buy it from the eBay seller. What's interesting to note, is the jeweler's price is $140 less than the eBay seller. I do believe they are shipping it today, so I should have it very soon. Can't wait to see it!
Thanks again,
Julie

 

[Lady_Disdain]

Thank you all for your replies. What you say makes a lot of sense; I think I just panicked. I did call the eBay seller this morning and was told that the stone was no longer available. I'm assuming that the jeweler did in fact buy it from the eBay seller. What's interesting to note, is the jeweler's price is $140 less than the eBay seller. I do believe they are shipping it today, so I should have it very soon. Can't wait to see it!
Thanks again,
Julie

I am willing to bet that the jeweler did not buy from the eBay seller. A true wholesaler is not interested in keeping up eBay listings, dealing with public, etc. His business is buying diamond lots, sorting them out and sending them to jewelers (who require a lot less customer care than the general public). Both probably have access to the same wholesaler, who was holding the stone.