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Blue Nile is an online specialty retailer of fine jewelry. Blue Nile was founded in 1999 and today is the largest online retailer of diamonds. Blue Nile is based in Seattle, Washington and competes with traditional jewelry stores such as Tiffany & Co., and online retailer stores such as James Allen, Belgium Diamonds and Angel City Jewelers. The key feature of being able to search through thousands of diamonds by carat weight, cut, clarity, color and other characteristics, is what attracts many customers to the website.