Kogan.com: Driving efficiency with unified payments
Ecosa has big dreams. Global dreams. Designing luxury sleep solutions since 2015, the Australian retailer is determined to transform the lives of millions, one heavenly sleep at a time. Here’s how an easy integration with Adyen and the PrestaShop ecommerce platform is helping make that dream a reality.
Ecosa’s integration with Adyen and PrestaShop goes a little like a bedtime story. Needing to find a new ecommerce platform and a complementary payment solution, Ecosa set out to find the perfect fit. Because the company already had a strong development team, they knew what they were looking for: a payments solution that was stable and scalable at a global level, and an ecommerce platform with a clear and open API. The right combination would allow Ecosa to customize functions to suit their unique business needs, optimize sales conversions, and enable global growth.
“It takes time to make sure you’re choosing the right platform for your wishes,” says Ringo Chan, founder and Director of Ecosa.
With that in mind, the Ecosa dev team did their research and weighed up all the options. Some competitors were too basic; others were too complex or expensive. But just like the old story of Goldilocks and the Three Bears, the perfect option was soon found: Adyen and PrestaShop.
PrestaShop has an open API, upon which Ecosa’s development team can easily adapt and build what they need. Adyen’s payments platform enables seamless customer experiences on any channel, any device, and any global market, all on one single platform.
“We ultimately chose Adyen because of the growth possibilities,” says Chan.
“It’s also the beauty of not having multiple partners in the payment flow. With Adyen being one whole platform, you basically own the whole payment journey. This is what attracted us, because you have more control. Therefore things can go more smoothly, or if something goes wrong you have the capabilities to fix the issue.”
“Adyen has been extremely helpful,” says Chan. “Really proactive. As soon as we ask something we’ll get a full reply from Adyen in less than two hours. They’re thinking as a partner instead of a vendor."
The global mattress market is poised to grow by US$ 14.36bn between now and 2024. Ecosa is approaching this opportunity with a balance of ambition and forward-thinking. Like Adyen, the retailer is conscious that good growth must be sustainable growth, fuelled by strong customer experiences and scalable processes.
“We’re growing quickly, but we don’t take any funding,” says Chan. “Our business is actually growing naturally, so the growth is healthy.”
The company continually tests its products to better suit customer needs, from the speed of delivery to its eco-choice products. Ecosa mattress foams contain no harmful chemicals, and any refunded mattresses are sold by charities, with 100% of profits kept by the charity.
From the start, the Ecosa team knew they needed a payments partner that could keep up with their ambitious growth targets. The company relies on Adyen to help future-proof the company’s growth strategy through scalable, seamless payments around the world.
“We were originally targeting $80-100 million in two years’ time, and by then all the rates that didn’t matter before would soon become very important... like the customer checkout success rate, the credit card approval rate, the speed of the checkout,” says Chan.
As Ecosa sales continue to surpass expectations, that growth target has already changed. Now, Ecosa’s new goal is to reach $150m in two years.
Having launched in Australia in 2015, Ecosa expanded to Hong Kong and New Zealand in 2016, the USA in 2017, and Canada in 2019. The company is well on the way to realizing its global growth dreams, and doesn’t plan to lose any momentum. With Adyen, Ecosa can offer its international customers leading local and international payment options, including Alipay, China Union Pay and WeChat Pay. Ecosa can even adjust risk settings to suit a specific region.
“Adyen makes it a lot easier for Ecosa to expand and grow the business with the offering in local payment methods,” says Chan.
"When trying to enter the Hong Kong market, using WeChat is key - and Adyen made that so easily possible.”
When it comes to optimizing ecommerce sales, speed and reliability are as essential as a good night’s sleep. According to Chan, the level of control that Adyen’s payment solution provides Ecosa is crucial to offering this experience, contributing to higher approval rates and providing a stable platform.
“Every single detail, we wanted to be able to optimize. We wanted to prevent fraud. We wanted more control over what we could do in terms of payment,” says Chan.
After just three months of partnering with Adyen and Prestashop, Ecosa’s authorization rates improved by 1.5%. This, coupled with the increase of online shopping during the COVID-19 pandemic, resulted in a 200% increase in sales. Adyen’s RevenueProtect takes a data-led approach to block fraud while recognizing legitimate, loyal shoppers. Ecosa was able to run A/B tests to identify the perfect fraud setting for increased conversions.
“Customers might be in the middle of something - they might be on a train, and need to get off at the next stop, and if your website takes too long to process the sale, chances are they won’t complete the sale. So timing is extremely important,” says Chan.
“With Adyen we can uplift our credit card approval and provide the speed of checkout and ensure that every single payment detail will be optimized, including fraud.”
Ecosa plans to expand to Japan in a few months, while also increasing market share in both the USA and Canada. This expansion is part of a wider ambition to grow to 80 million in revenue within two years.
Chan says the company will continue to rely on Adyen to help enable this expansion. In addition, he has chosen Adyen as a payments partner for his second business, Spacewhite: an online retailer of all-natural, planet-friendly home cleaning solutions committed to reducing plastic waste and supporting charity organizations. Chan reflects that from Ecosa, he has learned the exciting possibilities that can come from having the right business structure and processes in place.
“What I learned from Ecosa is that you can be ambitious, you can have a plan to help the world and help people. If you’re not born a billionaire you can feel limited in how much you can help. But really, if you can have the right business structure, it’s possible to help more people than you can ever imagine.
“We want to keep growing Ecosa into a business that will not only let people sleep better, but will also have the structure to help the world.”
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