Foreign Exchange Solutions for Online Marketplace Sellers
E-commerce businesses have been booming during the coronavirus pandemic, with more merchants opting to sell their products via online marketplaces such as Amazon, eBay and Etsy.
Last year, over 50% of global e-commerce sales were purchased through Amazon, evidencing the need for small businesses to become involved in the world of online marketplaces.
Online marketplaces are an excellent way for small businesses to expand into global markets and make their products available to international buyers.
Whilst selling online can be great for business exposure, many marketplace sellers are unaware that international trade can pose their own set of financial challenges, particularly when it comes to currency exchange.
When an international customer purchases your product online, you accept payment within the buyer’s local currency. Once you have been paid, you will then have to convert the funds back into your currency. The key when converting revenue is to ensure you secure the best currency exchange rate to ensure you receive maximum payment.
Online marketplaces such as Amazon, eBay and Etsy offer their own currency exchange service, which can seem convenient initially but they do not always provide the best exchange rates.
Using a bank to convert funds, can also provide poor exchange rates, and they will often charge costly transfer fees, leaving you out of pocket and impacting profits.
In addition to converting revenue, online marketplace sellers may be required to pay international suppliers. Sending money abroad also requires a smart foreign exchange strategy as a poor exchange rate could lead to an unnecessary financial loss once again.
Many marketplace sellers are unaware of the significant percentage of profits which can be lost as a result of uncompetitive exchange rates. The potential for profits to be impacted so heavily highlights the need for smart foreign exchange solutions to be implemented when selling online.
At Halo Financial, we help a range of businesses, both large and small, identify the most appropriate currency product to secure the best exchange rates, helping to protect your profits and ensure the best deal possible. Make sure your online marketplace business isn’t losing out by speaking to one of our expert currency consultants today.
To find out more about how Halo Financial could help make your online marketplace business more profitable, please give us a call on 020 7350 5474.
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