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The core difference
Sterling silver is an alloy containing silver throughout the piece; 925 sterling conventionally refers to 92.5% silver. Silver-plated jewelry uses a thin silver layer over another material. Do not describe plated base-metal jewelry as solid sterling silver.
Why sellers should care
The distinction affects sourcing cost, product labeling, care expectations, testing and how you compare supplier quotes. Always obtain the exact base material and plating specification rather than relying on a product photo.