MajorsJan 02, 2026
Marc Metrick Out as CEO of Saks Global Executive Chairman Richard Baker will take over the role as rumors swirl that a bankruptcy filing is imminent for the troubled retailer.
EditorsAug 14, 2014
What’s ailing the Internet giants
As both a reader and a writer, this headline in The New York Times caught my eye over the weekend: “Plot Thickens as 900 Writers Battle Amazon.”
Caught in the middle are hundreds of Hachette authors who are losing money. Because of this, more than 900 authors (most of whom are not even published by Hachette) banded together, drafting this letter to Amazon CEO Jeff Bezos that ran as a full-page advertisement in Sunday’s Times.
In a follow-up story, the Times reports that Amazon is locked in a similar struggle with another supplier, this one even bigger than Hachette: Disney.
Underlying this push-pull between Amazon and its suppliers is this basic fact: the Internet behemoth is bleeding. In the second quarter, its losses totaled $126 million, compared with $7 million a year ago.
It has cut its margins too thin with its rock-bottom prices and ubiquitous free shipping, and it feels brick-and-mortar retailers nipping at its once-untouchable heels, as noted by L2 in a recent study. Now it’s trying to put the squeeze on suppliers to correct its errors.
It’s really the only action that Amazon can take. After all, a company whose main attraction is having the lowest price on absolutely everything from books to diamond rings can’t raise them too much. What would set it apart then? It doesn’t offer any kind of physical experience--in other words, you can’t (yet) go into an Amazon store to see, touch and feel product before you buy--and it’s hardly the only retailer selling goods online with fast delivery these days.
All that ails Amazon is very similar to what Blue Nile is experiencing right now.
The Seattle-based online diamond seller, which made its name by undercutting traditional brick-and-mortar jewelers on engagement ring prices, recently had to lower its prices after passing higher diamond prices on to consumers put a dent in second quarter sales. (U.S. engagement ring sales fell 5 percent during the period.) The company will be certain that its pricing strategy is one element of the business that is “absolutely clear to the consumer,” CEO Harvey Kanter stressed.
While Blue Nile has had to adjust its pricing many times in the past in response to fluctuations in the diamond market, this most recent announcement
raised an interesting question: How is Blue Nile going to set itself apart going forward?
Having covered this company for several years now, it is my impression that Blue Nile’s customers are quite price sensitive. They are shopping on Blue Nile because it’s, first and foremost, cheaper and more convenient.
But that’s not necessarily enough anymore. Brick-and-mortar retailers have become more competitive with their pricing and many are online now as well. So, how do companies like Blue Nile and Amazon continue to compete?
Ironically, the answer seems to be by mimicking the brick-and-mortar retailers they’ve pained for so long.
Blue Nile is displaying (not selling) its rings in two Nordstrom stores. When asked last week by an analyst about these displays, Kanter said: “It is a test. It continues to be a test. We are learning a lot of things … we are in a learning mode and we don’t really have a view of what will happen as we move forward. It is a test and continues to be just that.”
It is a test, but not just a test. It is an indicator that online retailers will have to offer more to keep up in this ever-evolving market.
Having covered this company for several years now, it is my impression that Blue Nile’s customers are quite price sensitive. They are shopping on Blue Nile because it’s, first and foremost, cheaper and more convenient.
But that’s not necessarily enough anymore. Brick-and-mortar retailers have become more competitive with their pricing and many are online now as well. So, how do companies like Blue Nile and Amazon continue to compete?
Ironically, the answer seems to be by mimicking the brick-and-mortar retailers they’ve pained for so long.
Blue Nile is displaying (not selling) its rings in two Nordstrom stores. When asked last week by an analyst about these displays, Kanter said: “It is a test. It continues to be a test. We are learning a lot of things … we are in a learning mode and we don’t really have a view of what will happen as we move forward. It is a test and continues to be just that.”
It is a test, but not just a test. It is an indicator that online retailers will have to offer more to keep up in this ever-evolving market.
More on Editors
The Latest
Events & AwardsJan 02, 2026
Jan Mohr, Couture’s ‘North Star,’ Dies at 71Mohr had just retired in June after more than two decades as Couture’s retailer liaison.
SourcingJan 02, 2026
IDCA Elects New President, Board of DirectorsShekhar Shah of Real Gems Inc. will serve as president of the Indian Diamond & Colorstone Association in 2026.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
CollectionsJan 02, 2026
Lalaounis’ 2026 Good Luck Charm Speaks to ResilienceThis year’s good luck charm features the mythical horse Pegasus, and is our first Piece of the Week of the new year.
Weekly QuizDec 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsDec 30, 2025
Becka Johnson Kibby to Lead Edge Retail AcademyAs part of the leadership transition, Sherry Smith will take on the role of vice president of coaching strategy and development.
SourcingDec 30, 2025
India Chosen as KP Chair for 2026It marks the third time the country has headed the Kimberley Process. Ghana will serve as vice chair.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
WatchesDec 30, 2025
Bulova, Stetson Collab on Watches With Western FlairThe new Bulova x Stetson designs highlight two animals often associated with the American West—the bison and the Texas Longhorn.
CollectionsDec 30, 2025
Rahaminov Diamonds Pops Up in FloridaIts residency at Yamron Jewelers will run through May 2026.
IndependentsDec 29, 2025
In Memoriam: Industry Friends We Lost in 2025From influential executives to innovative designers, we pay tribute to the people we said goodbye to this year.
MajorsDec 29, 2025
Tanishq Opens New Stores in Florida, VirginiaThe retailer is expanding into areas with large Indian and South Asian populations.
MajorsDec 29, 2025
Nanis Opens First Flagship Store The Italian brand has opened its first flagship amid the peaks of the Dolomites in Madonna di Campiglio, Italy.
SourcingDec 29, 2025
‘Unearthed: Raw Beauty’ Exhibition Opens at LA MuseumThe new curation at the Natural History Museum of Los Angeles County showcases rare gem and mineral specimens in their uncut, natural state.
CrimeDec 24, 2025
LA Jewelry District Couple Pleads Guilty to Hiding Millions from IRSThe couple pleaded guilty to concealing at least $127 million in cash transactions at its precious metals businesses.
SurveysDec 24, 2025
Consumer Confidence Falls Again in DecemberConsumers shared concerns about prices, inflation, tariffs, trade, and politics in the survey’s write-in response section.
AuctionsDec 24, 2025
Bonhams to Open New U.S. Flagship in NYCIn February 2026, the auction house will move its headquarters to the former Steinway Hall, a neoclassical landmark on Billionaires’ Row.
Events & AwardsDec 24, 2025
NYC Jewelry, Antique, & Object Show Announces Winter EventThe new show will take place Jan. 23-25, 2026.
SourcingDec 23, 2025
Mining Titan Brian Gilbertson Dies at 82The former BHP Billiton leader and Gemfields chairman is remembered for his influential leadership throughout his 50-year mining career.
Events & AwardsDec 23, 2025
Bulgari Reimagines Costume Designers Guild AwardThe LVMH-owned brand has partnered with the costume design union to revamp its award for 2026.
MajorsDec 23, 2025
Kering to Acquire Stake in Raselli Franco GroupThe luxury titan inked a deal to acquire an initial minority stake in the jewelry manufacturer with a pathway to full ownership by 2032.
MajorsDec 23, 2025
For Future Reference Vintage Enters Bloomingdale’sThe company’s curation of unsigned vintage and estate jewelry debuted at the Bloomingdale’s in Costa Mesa, California.
CrimeDec 22, 2025
Customs Seizes Hundreds of Fake Rolex, Cartier WatchesIn the recent multi-shipment seizure, CBP also found counterfeit Audemars Piguet, Moncler, and Chrome Hearts items.
Recorded WebinarsDec 22, 2025
2025 Jewelry Rewind: Looking Back on an Eventful Year Jewelers of America execs and National Jeweler editors discuss tariffs, the sky-high gold price, and the engagement that broke the internet.
MajorsDec 19, 2025
MadaLuxe Group Acquires Ippolita The luxury goods company said founder Ippolita Rostagno will remain at the brand’s helm.
MajorsDec 19, 2025
LVMH Names New Bulgari CEOLaura Burdese, who joined the Italian luxury brand in 2022, will take on the role in July.
EditorsDec 19, 2025
2025 Jewelry Superlatives: A Yearbook-Style Year in Review The National Jeweler editors revisit the most noteworthy industry happenings and design trends from 2025.
