FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person *   Sainsbury Jon 2. Date of Event Requiring Statement (Month/Day/Year) 02/08/2011 3. Issuer Name and Ticker or Trading Symbol BLUE NILE INC [NILE] (Last) (First) (Middle) 705 5TH AVE SOUTH, SUITE 900 4. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) VP of Marketing 5. If Amendment, Date Original Filed(Month/Day/Year) (Street) SEATTLE, WA 98104 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4) 2. Amount of Securities Beneficially Owned (Instr. 4) 3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 4. Nature of Indirect Beneficial Ownership (Instr. 5) Common Stock 844 D   Common Stock 265 I By Wife

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Restricted Stock Unit	02/23/2010(1)	  (1)	Common Stock	117	$ 0	D	Â
Stock Options (Right to Buy)	08/26/2004(2)	10/09/2013	Common Stock	2,200	$ 8.75	D	Â
Stock Options (Right to Buy)	08/26/2005(3)	07/27/2014	Common Stock	450	$ 30	D	Â
Stock Options (Right to Buy)	08/26/2006(4)	08/07/2015	Common Stock	1,000	$ 32.43	D	Â
Stock Options (Right to Buy)	08/04/2007(5)	08/03/2016	Common Stock	625	$ 30.31	D	Â
Stock Options (Right to Buy)	08/04/2007(5)	08/03/2016	Common Stock	625	$ 37.07	D	Â
Stock Options (Right to Buy)	08/04/2007(5)	08/03/2016	Common Stock	625	$ 40	D	Â
Stock Options (Right to Buy)	08/04/2007(5)	08/03/2016	Common Stock	625	$ 55.34	D	Â
Stock Options (Right to Buy)	08/29/2008(6)	08/28/2017	Common Stock	3,000	$ 83.81	D	Â
Stock Options (Right to Buy)	08/08/2009(7)	08/07/2018	Common Stock	10,000	$ 41.13	D	Â
Stock Options (Right to Buy)	02/23/2010(8)	02/22/2019	Common Stock	14,000	$ 21.22	D	Â
Stock Options (Right to Buy)	02/17/2011(9)	02/16/2020	Common Stock	10,000	$ 49.11	D	Â

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Sainsbury Jon 705 5TH AVE SOUTH SUITE 900 SEATTLE, WA 98104	Â	Â	  VP of Marketing	Â

Signatures

/s/ Lauren Neiswender, Power of Attorney		02/17/2011
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The restricted stock units vest and convert into common stock in two equal annual installments commencing on February 23, 2010.
(2)	25% of the option shares vest on August 26 2004 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(3)	25% of the option shares vest on August 26, 2005 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(4)	25% of the option shares vest on August 26, 2006 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(5)	25% of the option shares vest on August 4, 2007 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(6)	25% of the option shares vest on August 29, 2008 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(7)	25% of the option shares vest on August 8, 2009 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(8)	25% of the option shares vest on February 23, 2010 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.
(9)	25% of the option shares vest on February 17, 2011 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.

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