Sep 21, 2021
When it comes to expanding e-Commerce or online businesses, many sellers tend to limit themselves to working only in their home country due to the daunting aspects of foreign exchange rates. This significantly reduces their potential to reach a wider audience and take their brand to the next level.
But what if we told you that international payments and foreign exchange rates are no longer such big barriers and there are alternative paths to take?
Let’s walk through some of them:
- Open a Foreign Bank Account
While having a foreign bank account can sound amazingly convenient for sellers, it’s not necessarily a practical reality. Firstly, you’ll have to go through a long and tough process of filling out paperwork and providing evidence. And secondly, you might not get the best rates!
Even if you open a foreign bank account, they might not even give you the best bet. Banks are not known for their competitive exchange rates. In fact, they are not created to serve the interests of international e-commerce sellers. So, you might reevaluate this option.
- Use the Amazon Currency Converter
The Amazon Currency Converter seems like a very advantageous option for merchants at first glance. This seems like the easiest and fastest way to exchange money, allowing shoppers to buy from sellers worldwide as long as there are shipping options available to them.
There’s no denying that this service is very helpful for customers looking for maximum convenience. However, even if Amazon doesn’t make it clear, they’ll charge you a very high percentage rate of your profits. Worst of all, you may not even be aware that you are being charged for currency conversions using Amazon.
- Find a Cross-Border Account for e-Commerce
Cross-border e-commerce is when online shoppers make purchases from retailers outside their home country. This process is often so seamless that buyers do not even know that they are shopping abroad.
With the right cross-border account, you can make free VAT payments directly in the currency that you collect payments in. No transaction fees, no exchange fees.
Now that you’ve got a basic understanding of the most common currency exchange solutions available, you can decide which external payment provider works best for you.
Want to learn more about cross-border eCommerce and international currency exchange?
In this segment of “Finding Gold” brought to you by the Elite Seller Show, Ryan Cramer from Ping Pong Payments helps you navigate the complex world of international currency exchange and how this can make dollars and sense in your pocketbook by finding the right payment processes and platform to cash in on your ROI advantage.