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2014 Pre Black Friday Report on eCommerce and Pawn Shops
The web again is growing at a viral rate of growth and continues to grab the gross wallet share of consumer spending. Count on your stores to continue being under siege.
“Last year to date announced by Channel Advisors” – Amazon up 32% – EBay up 10% – eCommerce Marketplaces up 41%.
In addition, Buya.com up 468% and EBay|Buya API up 1168%.
The perfect match between Pawn and eCommerce was the startling realization that consumers will purchase used merchandise at an exponential rate more than previous consumption, and this has been validated since 1999 when EBay became the new disruptive commerce channel. People love used stuff and all they needed was a distribution mechanism to gain access to this category of merchandise through the Internet.
Today there is still a shortage of used merchandise. Amazon and EBay still continue the sell through used merchandise.
Pawnshops, with the help of the Internet, can sell an unlimited number of items through their stores. Since 1999, the web has extended its dominance through the mobile phone, as the tethered communicator of fact, gossip, and advice.
The only way for consumers to know what you have to sell is through marketing. 90% of the consumers shop on the Internet before they purchase today. The only way for people to know what you have in your store is to have your inventory on the Internet.
Putting your inventory on the web will drive your local sales.
A pawnshop’s in-store inventory is the most powerful marketing eCommerce placement on the web. Yes, your merchandise is being sought after and all of your local consumers just need to know that you have it. They would prefer instant gratification, no shipping fees, and to try it out before purchasing on the web.
The bigger eCommerce becomes, the web centric pawnbroker will become the powerhouse accommodation and supply channel of inventory.
The better the liquidity of defaulted inventory for the pawnbroker, the more competitive the lending pawnbroker can become. Paying the most to your customers for their items drives better merchandise and more business. The number one word of mouth chats to the local population are pawnshops that pay more.
Selling fast is a retailers dream. Why would you buy inventory to resell and not sell it immediately. If you have $100k inventory and sell it at a 2 times turnover, your inventory asset investment at a 50% margin will make you $200k gross profit. That same $100k inventory turned 4 times a year will make you $400k gross profit. Without investing more capital you can double your profit. The power of turnover is the most important metric in retail today.
BUYA.COM sales have grown 100% per month for the last 12 months. It has moved to the top 20K website in the United States this month.
eCommerce and Pawnshop is a business eco nirvana. Turning your store into an eCommerce enabled store front, drives your sell through increasing your loan base. Most successful pawnshops generate 60% of their profits through their retail sales. If you know that you can sell your defaulted loans easily and more profitably, you will buy more merchandise to sell. You will also lend more money to your customers because of the increased confidence. Its win win.