How Refunds and Cancellations Work for Custom Jewelry Orders
The Reasons Why Your Custom Jewelry Shop Should Use a Different Return Process Than Most Retail Stores
Retail stores sell "off-the-rack" products. Each product is manufactured in quantities so that it can be sold quickly. The store does not spend money until they know a customer will buy the product. They do not pay for materials or employees until they know they will receive payment for them.
Each product that you manufacture using your custom jewelry shop will incur expenses early in the creation process (expenses related to designing, computer-aided drafting, purchasing materials, etc.). Once a piece of jewelry is created, the shop cannot easily resell that item as standard inventory because it is a one-of-a-kind item. Due to those differences, many shops use different policies for refunds and cancellations for custom orders compared to their standard retail sales — especially when managing refunds for made-to-order jewelry.
Summary of CJD Fine Jewelry's Return Policies
CJD Fine Jewelry has developed a custom jewelry return and warranty policy that provides equal consideration for the needs of the client and the reality of creating customized products. Simply put, all custom jewelry produced by CJD Fine Jewelry is not eligible for returns unless a manufacturing defect exists in the completed product.
- • If a manufacturing defect is found, the client will be offered either a replacement or repair of the defective part within one year of purchase.
- • If the client decides to cancel their order prior to the beginning of production, the entire deposit will be returned to the client.
- • If the client chooses to cancel their order after the custom jewelry designers and craftsmen begin working on the project, a portion of the deposit will be refunded to the client based upon the amount of expenses incurred by CJD Fine Jewelry prior to the cancellation (the cost of materials, fees for third-party services, and the cost of the employee's time spent on the project).
This policy for bespoke jewelry orders is consistent with industry standards for retailers in the United States and minimizes the risk for both parties involved in the transaction.
How CJD Fine Jewelry Calculates Retained Funds From Cancellations
To provide clarity to the client regarding the costs associated with producing the custom jewelry, CJD Fine Jewelry categorizes the production process into four distinct stages:
- (A) design and approval (computer-aided drafting/illustration),
- (B) procurement of materials,
- (C) fabrication (casting, setting, etc.), and
- (D) completion and quality assurance.
Upon receipt of a notice of cancellation, if the cancellation occurred after stage B or C of the production process, CJD Fine Jewelry will retain the costs associated with the materials purchased and a proportional share of the employee's time for the completed stages. Any excess amount of the original deposit will be returned to the client.
For example (this is simply an example, not an actual case): assume a client places a $10,000 custom order and pays a 40% deposit of $4,000. After stage C of the production process, the total cost of the materials purchased is $2,500 and the equivalent of $800 in design and/or bench time has been expended by the employee. In this case, the amount of the original deposit that is refundable would be $4,000 − ($2,500 + $800) = $700.
To avoid disputes and to follow recommended industry practices, the calculations are provided to the client in writing at the commencement of the project.
What Is Considered a Manufacturing Defect Under CJD Fine Jewelry's Return Policy?
A manufacturing defect is defined as an error made during the creation and assembly of the custom jewelry (such as a failure of a joint that is soldered together, porosity in a cast metal component that compromises the integrity of the piece, or a failure of a component of the jewelry to be properly set due to poor craftsmanship).
Wear and tear, accidental damage, failure to maintain, unauthorized alteration to the jewelry by someone other than CJD Fine Jewelry, and loss are considered normal wear and tear and are excluded from warranty coverage.
When a client asserts that there is a manufacturing defect, CJD Fine Jewelry will require documentation of the claim (such as photographs, proof of purchase, and a description of the problem), inspect the jewelry, and perform repairs or replace the defective components of the jewelry at no additional cost to the client for up to one year from the date of purchase.
The client will also be responsible for the cost of shipping the jewelry back to CJD Fine Jewelry and for any additional costs associated with returning the jewelry.
CJD Fine Jewelry has defined these terms similarly to those used in industry-standard warranties for jewelers.
Disclosure Requirements for Transparency, State and Federal Laws, and Dispute Resolution
All terms and conditions of the custom jewelry commission (including but not limited to deposit amounts, definition of stages of production, refund formulas, warranty limitations, and procedures for submitting a claim for a manufacturing defect) will be included in the written agreement that accompanies the custom commission.
By documenting all terms and conditions of the transaction, CJD Fine Jewelry will meet all applicable state and federal regulations for return and disclosure requirements.
If a client is unable to resolve a dispute with CJD Fine Jewelry through the company's customer service department, the client may seek assistance through mediation services, submit a complaint to the Better Business Bureau, or contact their local consumer protection agency.
All of these options are available to clients and do not waive the client's rights under CJD's commercial policy.
Note: Practical Advice
Prior to placing an order for custom jewelry, ask the retailer to provide you with a written quote that includes the terms and conditions of the cancellation of the order. Also, inquire about what portion of the deposit is refundable.
Additionally, ask the retailer to provide you with copies of the designs and/or illustrations that you approve for your custom jewelry order and the receipts for any materials that are purchased.
CJD's custom jewelry return and warranty policy is intended to be clear and equitable: to protect the client's investment in their custom jewelry while acknowledging that a portion of the costs incurred by CJD Fine Jewelry will occur before the client receives their completed custom jewelry order.
04 Comments
"Thank you for clarifying how one-of-a-kind custom items impact refunds. That totally explains why shops can't treat them as 'off-the-rack'. I'll keep that in mind before I commission my next piece."
Riley Brooks
"Great read, thanks! I was just curious, when you mentioned that materials purchased are kept by the shop upon cancellation, how often do customers actually have access to receipts or documentation showing what materials were purchased? Just wondering about potential real-world disputes."
Mason Clarke
"Very clear and fair policy. I'm glad to see that I can feel confident making a custom order. One minor question - Will I always be responsible for shipping back items that don't fit? Perhaps you could include that in the initial agreement."
Dylan Foster
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Contact us with any questions or replies — we’re always here to help.
"I really liked how you broke down the deposit stages in your article. So, if after Stage A the customer asks for a significant design change, would that constitute a cancellation or just a delay within the confines of the same contract?"
Harper Jenkins