Company Overview
Lavish Alice is a leading UK-based fashion brand that has been redefining women’s clothing since 2013. Known for its modern and sophisticated designs, Lavish Alice offers a range of chic pieces that have captured the attention of fashion-forward women, celebrities, and influencers alike.
With a focus on bold silhouettes, clean lines, and unique details, Lavish Alice has become a go-to brand for stylish and high-quality apparel, available both online and through over 200 retail partners worldwide.
Challenge
With their growing international presence, Lavish Alice found themselves struggling to manage the complexities of global transactions. It wasn’t just one issue—it was a combination of problems that were holding them back:
- High Payment Declined: Their payment decline rate had climbed to 22%, well above the industry average of 7%. This was a major pain point because it meant one in five customers dropped out, resulting in a huge loss of sales revenue.
Hefty Processing Fees: Processing international payments came with steep fees—about 5% per transaction. The previous payment provider also obfuscated hidden fees through foreign exchange spreads. For a brand trying to scale globally, these costs were cutting into their profits.
Currency Headaches: Operating in over 20 countries meant dealing with 15 different currencies. Managing this was both time-consuming and costly, with foreign currency conversion alone costing them an addition of 2% per transaction.
These issues weren’t just an inconvenience; they were creating real cash flow problems. Payment settlements that should have taken 2-3 days were stretching out to as long as 7-10 days in some regions.
Solution
Determined to overcome these challenges, Lavish Alice team up with Gold Pomelo to implement their robust global payment solution, which provided a comprehensive response to their challenges:
- Fewer Payment Declined: With Gold Pomelo’s advanced tools for managing risk and fraud, Lavish Alice was able to slash their payment decline rate from 22% to less than 7%. This wasn’t just a minor improvement—it translated into an estimated $750,000 in additional monthly revenue.
- Lower Costs: Gold Pomelo’s payment gateway helped Lavish Alice cut their transaction fees by an order of magnitude. This saved them more than $400,000 a year. On top of that, a more streamlined currency conversion process reduced the cost per transaction by another 0.5%.
- Faster Cash Flow: Payment settlement times dropped to just a few days, no matter the market. This faster access to funds allowed Lavish Alice to reinvest quickly in inventory and marketing, fueling further growth.
What Gold Pomelo Did to Help
Gold Pomelo played an integral role in Lavish Alice’s transformation by:
- $2.2M in Monthly TPV*: After implementing Gold Pomelo’s payment solution, Lavish Alice saw a 15% increase in their monthly transaction processing volume, adding up to an impressive $2.2 million. This wasn’t just about bigger numbers—it reflected a better customer experience that drove more conversions.
- 50% Growth in International Markets: Within a year, Lavish Alice’s international revenue surged by 50%, thanks to the smoother payment processes. They were no longer held back by the friction of global transactions.
- Happier Customers: Lavish Alice also saw a 20% jump in customer satisfaction scores. Post-purchase surveys showed that customers appreciated the hassle-free checkout experience, which was no longer plagued by payment issues.
*Includes savings from international foreign exchange
