Open Discussion: Currency & its effect on your business?

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London United Kingdom
World First
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Open Discussion: Currency & its effect on your business?
9 Jun 2014
The chances are if you sell goods online, you will need to either pay for, sell or price goods in a different currency. This can be confusing, expensive, time consuming and difficult for sellers to comprehend.

Here at World First, we’d love to hear your views and opinions on how you feel about currency and its effects on your business, and in this discussion, I’d love to hear your questions on the subject. Please feel free to comment on this thread - I’ll try to answer any question, and let you know how we can help your business with its foreign currency arrangements.

World First
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
United States United States
ebayaholic
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Joined: Aug 16, 2003
Re: Open Discussion: Currency & its effect on your business?
11 Jun 2014
I sell worldwide thru eBay and Amazon and don't have any problem with different currencies. Why do sellers find it confusing??
Supplier
London United Kingdom
World First
Kudos: 175
Joined: Mar 11, 2014
Re: Open Discussion: Currency & its effect on your business?
11 Jun 2014
For some it can be confusing (mainly newcomers to international selling) as exchange rates vary. Big swings in the rates can effect your pricing plans, profit margins and costs for supplies. It is important to handle this well for optimum success. However some do not find this confusing, so that is great to hear!

However have you considered the cost of Amazon and PayPal when bringing your funds back to the USA? They will be taking between 3.5% and 4% on the exchange rate they offer you on your repatriations. World First can help international marketplace sellers save between 2-3% on this charge, which goes straight back into the sellers pocket!
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
United States United States
ebayaholic
Kudos: 101
Joined: Aug 16, 2003
Re: Open Discussion: Currency & its effect on your business?
11 Jun 2014
Hmm well now I AM confused. Right now it's very simple for me, but I do get what you mean about not getting exactly what you thought you would when the money is converted.

I'm not sure about signing up with yet another service especially when they are handling my money but getting a few extra percent would be nice to offset fee increases.

Would love to hear from other sellers who are actually using one of these companies?
Supplier
London United Kingdom
World First
Kudos: 175
Joined: Mar 11, 2014
Re: Open Discussion: Currency & its effect on your business?
11 Jun 2014
Just so you can understand the savings and what Amazon and Paypal charge you can see workings below for a seller with revenues of €5,000 per month:

Interbank/Market Rate for EUR/USD at time of Writing
(please be aware this changes):
1.3567

Paypal Rate (4%): 1.3024 you would receive $6512
Amazon Rate (3.5%): 1.3092 you would recieve $6546
World First Rate (2%): 1.3296 you would recieve $6648

As you see by using World First you would gain $136 more dollars from your PayPal revenues and $102 from Amazon revenues.

[Last edited: 11 Jun 2014]
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
Nottingham United Kingdom
Bigian13
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Joined: Feb 21, 2014
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
Currency fluctuations do not appear to be a problem for us.

We used to use WebInterpret for our international listings and they converted our UK selling prices to the international equivalent on a daily basis. PayPal may charge more for international currency conversion, but this was linked into our selling price
E-commerce , love it or hate it, that's why we are here
Supplier
London United Kingdom
World First
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Joined: Mar 11, 2014
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
WebInterpret are a partner of World First - They will reprice this, however when you are repatriating these sales you will be charged 4% on the entire amount. This will not be included in the pricing.
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
Herts, England United Kingdom
Andy
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Joined: Jan 1, 2001
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
My take on this is that the "default" way of converting currency from marketplace sales (i.e. PayPal/Amazon conversion) is convenient but relatively expensive.

Services like World First (there are others - I'm neutral on which is "best") introduce some complexity but offer the possibility of making a couple percent more on all foreign currency sales.
Andy Geldman, Web Retailer
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Shenzen China Australia
Tim298
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Joined: Jun 26, 2014
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
Hey guys - Firstly with regards to currency, we sell products almost all across the globe, so it can be difficult where we price for buyers and partners in various locations, we tend to price in USD and have to give a small buffer as well as watching out for any price drops, it can be challenging if the currency changes and someone seeks to buy at a previous quote from say 2 months earlier. Overall we have managed this pretty well by using a small buffer on the conversions while still maintaining excellent prices.

Bank accounts and payments have been a challenge previously but since we opened the account in Hong Kong this solved the issues we had with China banking.

We get paid in multiple currencies into HK, I guess there is some way to take advantage of this, but we dont tend to consider it... should we be?
Supplier
London United Kingdom
World First
Kudos: 175
Joined: Mar 11, 2014
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
it sounds as though you are ensuring their are significant buffers for you to protect from rate moves when pricing products. however there may be ways in which you can hedge the outgoing invoices from HKD if needed. more than happy to have a conversation about this. You can contact me on 0207 801 3022 or via email luke.trayfoot@WorldFirst.com. thanks
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
Supplier
Manila Philippines
2nd Office
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Joined: Aug 19, 2012
Re: Open Discussion: Currency & its effect on your business?
26 Jun 2014
Hi Luke,

Do you have any solutions for service based businesses? Currently we are accepting Paypal as a payment method and bankwire. We're based in the Philippines as well as our bank account, we provide services to eCommerce sellers. We pay around 4.75% on paypal fee's after conversion. We accept multiple currencies worldwide and you are right, it's hard to manage.

Thanks in advance.

Carlo
eCommerce Staffing Solutions. Expand your team with us, so your current team can focus on innovation and save up to 70% off labor costs www.2ndoffice.co
Supplier
London United Kingdom
World First
Kudos: 175
Joined: Mar 11, 2014
Re: Open Discussion: Currency & its effect on your business?
1 Jul 2014
Hi Carlo,

Good to meet you. Unfortunately we do not offer a website based payments solution for cross currency. However if you are using Paypal to accept these payments from another country you can use World First to transfer your balance back to your home bank account. Our team would be more than happy to talk you through what we can do for you. you can email me luke.trayfoot@WorldFirst.com or call 0044 207 801 1068. Thanks
Luke Trayfoot
Partnerships
0207 801 3022
luke.trayfoot@worldfirst.com
www.worldfirst.com/uk/online-sellers/?ID=1812
Nottingham United Kingdom
Bigian13
Kudos: 2,226
Joined: Feb 21, 2014
Re: Open Discussion: Currency & its effect on your business?
3 Jul 2014
In reply to World First

"WebInterpret are a partner of World First - They will reprice this, however when you are repatriating these sales you will be charged 4% on the entire amount. This will not be included in the pricing."

We used Webinterprets option of raising / lowering all prices in a specific marketplace by a specified percentage. This allowed us to take into account non VAT marketplaces, currency repatriations across international marketplaces and Webinterprets fees.

Therefore it was not a real problem for us at the time.

Looking to the future, services such as World First will probably be an option worth considering.
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