Challenge
Like most e-commerce businesses, eFavormart’s success depended largely on being able to offer the lowest online price among competitors, shipping included. But even after spending over $10 million annually with UPS, the Southern California-based wedding favor company found they couldn’t compete with larger competitors and continued to lose substantial amounts of business. Every time eFavormart attempted to negotiate better rates with UPS, the carrier assured them they already had the best pricing.
Solution
What eFavormart needed was better intelligence on the rates that similarly sized companies were getting in their region. After conducting a detailed market analysis and comprehensive study into the shipping characteristics at eFavormart, Reveel empowered the company with insights they could leverage to negotiate a vastly better deal with UPS. We also identified improved pricing strategies for the eFavormart website that enabled the brand to better position themselves against competitors.
Without Reveel’s help, it would have been impossible to determine what discounts were available from UPS—and more importantly, actually receive them. Thanks to Reveel, I not only saved money but was also able to grow revenue.
Mitchell Su
Owner
eFavormart
Results
By focusing on pertinent contract terms, Reveel reduced eFavormart’s UPS expense by 26% or $2.8 million annually with no operational changes. With the newly found savings, eFavormart was able to offer free shipping campaigns as well as deeply discounted products online. By implementing these changes, the company won more orders per day from their competitors. Within the first year of using Reveel, eFavormart was able to increase its topline sales revenue by 30%, which equaled more than $30 million in new revenue that year alone.
About eFavormart
Since 1994, eFavormart has grown from a small business of two people to a powerhouse in the wedding favor industry. They are one of the largest importers, distributors, and wholesalers of wedding products on the West Coast. From wedding cake stands to personalized napkins, eFavormart prides itself on the excellence and uniqueness of its offerings. The company’s dedicated employees have a unified vision: to please every single customer with the very best in products, prices, and service.
The Reveel App uses AI and machine learning to provide an unparalleled look into what’s impacting your bottom line. Through invoice audits, peer benchmarking, and rate modeling/simulations, you can see the health of your operation and assess pricing changes from parcel carriers like FedEx and UPS. Sign up for a free Reveel account today to see how you can leverage automation to synthesize your data, ship more for less, and reduce the time needed to identify issues and action items.
