PawnMaster Blog

How eCommerce Can Grow Your Revenue

Posted on 28 Apr 2021

How eCommerce Can Grow Your Revenue_Header

Many stores have been forced to develop new and inventive ways to achieve revenues during this pandemic. E-commerce has been the platform of choice, and frankly, allowed many brokers to continue to generate revenue while keeping store hours to a minimum. But was it worth it?

After 2 stimulus payments and the second round of income tax refunds, many stores are struggling for loan balance and inventory.

In a normal situation, the items that were sold have a good chance of returning as loans, but this is not a normal situation. The items sold through E-commerce are gone, with little chance of returning for a loan. So the question becomes, “how do I use E-Commerce to make money, without hurting my core business?”

I have always thought of E-commerce similar to selling to dealers: “AS LONG AS YOU ARE MAKING SURE THAT IT IS TO YOUR BENEFIT, THEN DO IT.”

E-commerce can be divided into 2 parts: ebay and your own storefront

Ebay sells to a larger audience, but the item is gone forever and usually doesn’t return as a loan.

Your storefront is a local reach, can continue to sell during closed hours, drives customers to your store for pickup, and allows the potential for future loans on the items.

Make no mistake, I never “loan to sell.” I believe in “Selling to loan.” I want that item back if they are ever in need of money in the future.

I also understand that there are many items that simply sell for a much higher price and more quickly with a national market. Those are the ebay items.

Use ebay to move items that would typically be difficult to sell or would sell for less than they should through your other channels. USE THE E-COMMERCE PLATFORM TO YOUR ADVANTAGE.

As long as you have a solid plan and become disciplined with the way that you execute it, you can be smart, profitable, continue to grow your loan balance, and move items that would typically stay in your shop for a while.

Dave Larson

Written by Dave Larson

Dave’s background in the collateral loan industry spans out more than 20 years. He began as a District Manager for a large chain of pawn shops in the Southeastern United States. There he was promoted to Director of Operations, overseeing all of North Florida and the Tampa Bay region. Taking the knowledge he gained as Director of Operations, he purchased his own pawn shop that he ran for eight years until making the decision to sell. As the current Director of Client Development for Data Age Business Systems, Dave brings a great deal of pawn industry knowledge to the table. Using his own experiences buying and selling a pawnshop, to overseeing the operations of a large statewide pawn shop chain, to working in pawn consulting, Dave works hand in hand with pawnbrokers to assist in their successful development.

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