EFBE is an e-Commerce powerhouse that supplies swimming pool owners with the most in-demand pool and spa products and supplies. Founders Ryan and Mike started EFBE in 2010 and what started from a chicken ranch in Ontario, CA has exploded into five web stores generating $70 million in annual sales.
Ryan and Mike built a management team that brought more product distribution knowledge and industry experience than any other close competitor. What’s more is that they partnered with technology providers who were on the cutting edge of website development and strategic e-Commerce marketing. This combination of industry expertise and IT muscle continues to give EFBE a clear advantage over their competition.
Their flagship store, poolsupplyunlimited.com, is still based in Southern California with a fully stocked 15,000 square foot warehouse. Now, they are leading experts in the industry, having supplied materials for thousands of pools. Today, the company also prides itself on being able to get most products to your door in less than a week.
The Costly Issue
Success didn’t come easy to the EFBE team. They were constantly faced with challenges: shipments lost or damaged in transit, online hackers, rising costs, supply chain issues, and on and on.
One of the greatest challenges they faced were expensive credit card chargebacks. Fraudsters were running amuck using stolen credit cards to purchase products from EFBE’s online stores, and many would file fraud disputes for any reason under the sun.
This was putting a major dent in EFBE’s profit margin: every time they had a chargeback, they lost their product, lost the money they received on the order, and had to pay an additional chargeback fee.
PayPal, their processing provider at the time, almost always sided with the consumer and gave no fighting chance for EFBE to win their money back. On top of that, PayPal’s fees were exorbitant and inflexible. As EFBE’s sales volume rapidly grew, the damage from PayPal’s high processing fees and lack of support became too big to ignore.
How did ribbonPay save EFBE money?
As the EFBE team were desperately searching for a solution, they received an unexpected phone call from Alex at ribbonPay. After listening to their concerns, the team at ribbonPay analyzed EFBE’s recent PayPal sales reports to determine how much money and stress ribbonPay could save them.
It was clear to ribbonPay’s team that EFBE needed to use a payment gateway with better fraud controls and prevent costly chargebacks from occurring. EFBE also needed to move away from PayPal’s excessive fees that were eating into their revenue.
The ribbonPay Difference
With ribbonPay to provide hands-on support and guidance from real payment experts, Ryan and Mike felt their business would be in good hands. Dare we say they were right!
The team at ribbonPay custom designed a pricing structure for EFBE, one that was more cost effective than PayPal’s whopping 3.49% flat rate structure. ribbonPay also provided support and was there on EFBE’s side when dealing with fraud or unfair claims.
ribbonPay took complete management of chargebacks for EFBE, employed advanced fraud controls, guided their staff on manual review for fraud, implemented tokenization, and moved them from an ‘auth/capture at point of sale’ method to ‘authorizing at point of sale and capturing at shipment.’
The Result: Saved $3.5 million in payment processing fees, 50% less chargeback losses
Since working with ribbonPay, EFBE has saved $3.5 million in payment processing fees. And after implementing all the tools and procedures we’ve provided, EFBE has reduced their chargeback losses by more than 50%.
With the money saved, EFBE has been able to widely expand their customer base. Today, they offer alternative payment methods such as PayPal, PayPal Credit, Buy Now Pay Later, and ship to customers worldwide. They are utilizing tokenization for a frictionless repeat customer experience, allowing customers to quickly and easily checkout.
Today, ribbonPay is an indispensable part of EFBE’s business and its success.
If you are an e-commerce business and you are looking for ways to save money on fees and chargebacks, contact us to schedule a consultation. ribbonPay is a leading provider of payment processing solutions for e-Commerce and B2B businesses. Our expert analysts can assess how much you can save on processing and interchange rates, and how to streamline your business process. We’re here to help your business grow.