Thu. May 19th, 2022
How Freshly Cosmetics increased their payment acceptance rate by 10.7%

Freshly Cosmetics , the brand specialized in natural, healthy and sustainable cosmetic products, has presented the redesign of its payment system that now includes the Checkout.com unified payment platform .

As a result of this change, the Spanish firm, winner of the eCommerce Awards for Best eCommerce of 2021 , has managed to raise its payment acceptance rate (sales) to 98.5% , in contrast to 89% (+10.67 %) that you used to get with your previous payment provider.

It is well known that not only for Freshly Cosmetics, but also for any retailer in particular, that there is a day in the calendar that has special importance and that is Black Friday . Given its importance and repercussion reflected in the sales of the last quarter of the companies, it is usually not the best time to modify the payment system of a company. However, in the case of Freshly Cosmetics, the company decided to evolve by changing its entire payment processing system and putting it in the hands of the Checkout.com platform.

This process was the icing on the cake of a previous audit work in which optimization opportunities were identified that could help the brand increase its transactions during the biggest sales season of the year.

“ Achieving such a large increase in sales in such a short space of time is extraordinary and a testament to the value of Checkout.com’s technology and professionals, ” said Miquel Antolín Civil, co-founder and CEO of Freshly Cosmetics . “ No other sales, marketing or operational initiative can have such a significant and immediate impact on our bottom line .”

Objective: Optimize the authorization rate

Recording a significant increase in sales in the run up to Black Friday, the priority the Freshly Cosmetics team focused on was optimizing the clearance rate as peak season was an important time for their business, so that an optimal performance of payments could be achieved and thus have the possibility of making the greatest number of sales and expanding the number of clients.

Checkout.com has designed a strategy that has managed to optimize Freshly Cosmetics’ retry payment process, also adjusting the transactions that used to go through the 3DS protocol . With this, the cosmetics firm has been able to take advantage of the security advantages of strong customer authentication and thus create a frictionless payment experience for them.

As they explain to us from the company, «Checkout.com works by combining state-of-the-art technology with detailed knowledge of the payment market. Likewise, the close work both with companies such as Visa or Mastercard and with issuing banks, allows us to offer a system that optimizes payment acceptance levels without the need for a retry by the end user. Said system combines both automatic retries and the optimization of the appropriate SCA protocols for each merchant. Our goal has been to be able to offer a frictionless experience for the user while being safe for both the merchant and the buyer.”

In addition, Freshly Cosmetics’ agreement with Checkout.com has enabled it to reduce the number of fraudulent payments and, at the same time, has provided the startup with all the necessary information to claim them in the event of any inconvenience.

“ With Checkout.com, our acceptance rate immediately increased to 90-92%, while the other provider’s was lower. It was obvious that we needed to move more volume to Checkout.com. Then we saw our authorization rate go up even more, so we moved all of our volume to Checkout.com just before Black Friday ,” Antolin highlights.

For his part, Jonathan G. Rambal, General Manager of Checkout.com for Southern Europe , adds that “ at Checkout.com we have worked designing an adhoc strategy for Freshly Cosmetics, achieving, thanks to our team, knowledge and our differential technology , that your acceptance rate reaches almost 100%. We are happy to work with such innovative and courageous clients like Freshly Cosmetics, who have not hesitated to follow our recommendations and are now reaping the benefits”.