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Pawn Shop Returns... All Pawn Shop Owners Dread Them!
As retailers, we all know that the only thing more important than your bottom-line is customer satisfaction. Your customers are the lifeline of your retail shop—and—multiple returns can hurt your relationship with your customers.
Pawnbrokers are no exception!
According to market analysts, brick-and-mortar return rates can hover near 9%. It’s an even more grim figure for eCommerce retailers, with returns climbing as high as 30%.
Clothing returns can sometimes top out at a staggering 40%.
The convenience of buying/returning an item online can drastically change the results of your bottom-line expectations. That is why it is crucial to understand how eCommerce can work WITH your brick-and-mortar store to enhance the customer experience.
The question is:
"Why do customers — particularly online buyers — get cold feet?"
There are a number of reasons a customer may return a purchase:
The Item is the Wrong Size:
Having the wrong size item is the most common reason for a return. Try to organize any items that are based on sizes in the same area of the shop. ie. Clothes, hats, accessories, gloves...etc.
Avoid losing a sale with a concrete organization strategy. If they can find the same/similar item in their size—they are likely to replace the item.
The Wrong Color:
Ordering products online can be confusing for any buyer. Colors can look different on various types of screens and photos. Consumers want to have the exact version of what they ordered online and will likely return if it does not satisfy their dream product.
The Item is No Longer Needed:
On occasion, the customer will simply decide they didn’t want/need the item once they got home. The best way to handle this type of customer is to give them other options that will fit their needs.
Ultimately, the rise of eCommerce has meant an increase in shop-from-home convenience. With the increase of eCommerce sales, you can expect a jump in their “this isn’t what I was expecting” disappointment. Additionally, having stellar photography for all of your items will help reduce the number of people who are dissatisfied with their item.
Identifying these problem areas will help you sell a different item and show that you can provide the customer service that will keep them coming back for more! Pawnbrokers that leverage the Bravo POS Systems have the ability to integrate their in-store efforts with the Buya Marketplace AND can manage inventory photos with a click of a button!
While no eCommerce business is entirely immune from returns, Buya returns considerably lower than both standard retail and online averages. Buya purchases only find their way back to their point of origin at a rate of around 3.5%.
So, What Makes Buya Different?
Why do our customers enjoy a greater rate of satisfaction with their purchases?
In a word: Standards.
Since Buya shares core DNA with Bravo’s pawnshop management system, there are certain, very consistent, processes baked right into the buying and selling of items. These processes not only aid in “hidden” functions like inventory management and sale processing—but also ensure some very customer-friendly features.
Customer-Friendly Features of Bravo:
The Power of the Estimator
Bravo’s Estimator maintains a deep, 1,200+ subcategory database of every manufacture/model that makes its way through pawnshop doors. Based on each of the 1,200+ subcategories, Bravo asks pawnbrokers a series of specific underwriting questions. These are questions that not only give pawnbrokers confidence to lend more, but they happen to be the same questions that give consumers the confidence to purchase.
When an item is sold in Buya, the consumer knows exactly what’s coming. They know more than just if the item is in new or good condition, they know the specifics like if it comes with an original controller (for video game consoles) or if it comes with the original charger (for laptops).
The Price Guide
Bravo also maintains a Price Guide for every manufacture/model. The Price Guide includes the fair-market buy and sell prices of nearly any item a customer could possibly want to pawn or sell. So, by the time an item finds its way onto the marketplace, it’s undergone both a human, and data-driven, appraisal. This ensures an upfront, honest price on both ends of the transaction.
Jewelry Master
Due to the unique nature of most jewelry pieces, precious metals and stones undergo an additional layer of screening via Bravo’s Jewelry Master in order to guarantee an accurate depiction. Similar to the Estimator, consumers care about the same things a pawnbroker does when underwriting the item.
Diamonds are categorized by the classic “Four C” classification. Stones are accounted for. Metal weight is calculated. And, of course, the full description of the jewelry piece. This helps buyers form a very clear picture of what to expect when their purchase arrives.
Returns happen but imagine a world where only 3 items out of 100 are returned. Then imagine a world where your point-of-sale handles the entire return process so that you aren’t spending time and effort re-entering the item, re-tagging, re-photographing, and re-describing. Guess what? You don’t have to imagine...
The Bravo Pawn Platform Can Do it All!
Click the link below to get a demo of Bravo! Our team is always ready to show you around our platform and explain the various benefits of our SaaS solution! Find out why 1,300+ pawnbrokers trust Bravo to help them buy, sell, and loan more in one simple easy-to-use software.
About the Author:
Tally Mack is a fifth-generation pawnbroker and eCommerce enthusiast. She loves traveling, being outside, and working out.
Before taking the reins as CEO, Tally served as Bravo's Vice President of Business Development, leading the company's sales and marketing organization. She's been instrumental in leading and executing many of the company's strategic shifts, including the acquisition of CompuPawn and the recent launch of UsedGuns.com.
Tally earned her Doctorate of Law (J.D.) from DePaul University College of Law in 2013 after attending the University of Colorado at Boulder, where she earned her B.A. in Communication Studies. She also completed the Key Executives Program from Harvard Business School in 2013.
Tally is a pawnshop lover and eCommerce enthusiast—dedicated to the success of both her employees and customers!
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