e-foro Customer Case Study

Background

The customer owns four pawn shops in Idaho. They were previously posting products to eBay and Craigslist manually, and decided to integrate e-foro through PawnMaster to make posting more efficient, and their reporting capabilities more robust.

Challenges…

… with eBay

  • Reporting was not integrated with the accounting system, so fees such as PayPal fees, shipping charges, eBay fees, etc. had to be recorded manually.
  • Listing products was a slow and cumbersome process.

…with Craigslist

  • Craigslist would only allow them to post a number of listings. Then they would have to wait for the system to allow them to post more items.
  • The paperwork involved with tracking these sales was very time consuming.

Execution

They began the implementation in July of 2015. The pawn shop decided to assign one person in the shop to be responsible for all eBay postings and another person is responsible for Craigslist. These individuals use the Aged Inventory Report in PawnMaster to identify which items to list online for sale.

Objectives

  • The company needed to find an effective way to turn their aged inventory, that wasn’t selling in their retail operation.
  • They also wanted expand their e-commerce operation, but didn’t have the resources to do so.

Results

  • This customer brought 32 new customers into their store for the month of August as a result of their Craigslist sales.
  • They made a total of 105 additional sales for the month – 32 from Craigslist and 73 on eBay.
  • Their online sales for one of their four operations was $11,594.07 for the month.
  • After the cost of goods and services, this customer made $4,268.25 in profit for the month of August.
  • The shop gained more foot traffic from craigslist, and further, they were able to track the sales that were attributed to Craigslist.
    • These customers are now listed in the system for future campaigns such as marketing text messaging blasts.
  • eBay sales volume dramatically increased as a result of being able to input multiple sales with the click of a button.
  • eBay also helped them tap into mobile commerce.
    • 26% of e-commerce sales came from mobile devices last year between Thanksgiving and Cyber Monday. This is a 20% increase over 2013.
  • Craigslist – Postings are now entered into a queue, and will automatically post to Craigslist when another post is allowed by Craigslist.
  • They are now able to reach customers across the country, rather than just those within driving distance to their store.

Here’s what this Customer has to Say

“It’s a great system for reporting the numbers and it keeps track of everything. Prior to using e-foro, we were using Auctiva for eBay, and Craigslist, we were just going to the site. Now we can track what sells on Craigslist and what doesn’t. Beforehand, we had a bunch of terrible paperwork we had to keep track of every time we sold something and now it’s just a report in our system so it’s really nice to have that tracking ability. You can actually track how many people came in to buy something from Craigslist. Since we started e-foro, we’ve been able to increase our postings quite a bit because craigslist used to kick us off after so many postings. E-foro will put the postings in a queue for us and it will post to craigslist when Craigslist will allow for another post. We’ve seen an increase in sales because we’ve been posting a lot more. It’s been really helpful, you guys have been great and we definitely see the benefit of it. It’s been such a great advertising tool.”

Why Should You Have Your Inventory Online?

  • Consumers are buying online. Online holiday sales jumped 13.9% in 2014, when compared with online sales from 2013. 43% of online buyers begin pre-purchase research in a retail store, on a website or in a catalog.
  • Holiday spending in the United States this year is projected to be $885.7 billion.
  • E-commerce alone is expected to reach $79.40 billion this year.
  • By December 10, the average holiday shopper has completed 53% of their holiday shopping.
  • 59% of retailers have already started their holiday promotions.
    • 41% of those surveyed in the US said Black Friday was their most profitable business day last year.
    • 36% said it was Cyber Monday.
    • 14% said it was Free Shipping Day.
  • Retail spending is expected to jump 5.7% this year, as a result of some factors of the economy, such as lower gas prices, decreased unemployment rates and rising wages.
  • This is the fastest rate of growth since 2011.
  • People are thriftier than ever before. They are comparing prices and making more educated purchases. This also makes people more open to buying refurbished or second-hand items.

Click here to get a checklist for the holidays.

Sources:

www.fortune.com
www.compass.ups.com
www.competitivefutures.com
www.nrf.com
www.emarketer.com

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