What do you mean by 0% fees?
Once we’ve received your item and reviewed it, Diamond Estate will provide you with a firm cash offer. If you accept our offer, there are absolutely no added fees.
We don’t charge you for shipping, insurance, evaluation. Most importantly, Diamond Estate does not charge a transaction fee.
You will receive the complete and net amount offered. This is not the case with many of the other online diamond buying platforms or traditional auction houses like Christie’s or Sotheby’s.
Do other online diamond buying platforms charge a fee that is subtracted from the final price offered?
Absolutely. Some of the largest and most advertised online buying platforms charge a hefty commission fee.
For example, one popular online jewelry auction charges a 22% fee for items valued up to $5000. If they were able to sell your diamond ring at standard retail store prices, then 22% would be a fair transaction fee. The problem is they are selling to other dealers like Diamond Estate and getting a cool 22% as a middleman!
Most people in the diamond industry would say charging 22% for flipping someone’s diamond to a dealer without having to purchase the diamond themselves is a great deal for the middleman — not so great for the seller. The fact is there are numerous dealers that you can sell to directly like Diamond Estate without paying an unnecessary middleman.
As for consignment websites, the most famous one pays you only 70% of the price your item sells for on their website. If they were selling your item for full retail value, then it would make perfect sense. However, they price your item at a huge discount compared to the retail value. Some items are up for sale for 1/3 of the retail value. Deduct 30% from there and the final price you receive can dwindle down to almost pennies on the dollar.
Established auction houses like Sotheby’s and Christie’s generally charge a fee of 25% to the buyer for items up to $300,000. Then they charge the seller anywhere from 5% to 20% depending on the item. Additionally there will be charges for photography, shipping, insurance, and advertising. At the end of the day, 30% to 45% plus the added fees mentioned will be removed from the final price of your item. And there’s always a chance the item does not sell.
We have great respect for Sotheby’s and Christie’s, as they are historical auction houses that have brokered magnificent diamonds and jewelry. They are able to gather up some serious buyers. So, our position is that if you have a large, extremely rare item that could sell for several millions of dollars, then they could be the right place to go. However, we don’t recommend these large auction houses for 99.9% of the jewelry you see in today’s market. The fees are just too high.