So you’ve got your Amazon business up and it is running well. Orders are coming in at a steady pace and you ask yourself why you didn’t start your online business sooner. Then you think about gaining access to new customers in new markets.
It’s only natural to think first of other english-speaking countries so you can easily replicate what you are doing in the US on a marketplace serving a new audience. In particular, expanding to Canada, the UK and Australia come to mind.
Suddenly, you need to consider new aspects of your business. For instance, if you aren’t already transferring money from one currency to another this can be one of the most stressful things to manage. To help alleviate some of the anxiety, here are four best practices to keep in mind:
- Look Beyond Your Bank – While it may seem logical to ask your current domestic bank to help you convert money from marketplace proceeds, you likely will pay both transfer fees and added margin (usually added to the currency rate) for the privilege of making the exchange. There are several currency specialists including OFX who have specific products – like multi-currency accounts – designed just for you to manage marketplace proceeds in multiple currencies.
- Evaluate Currency Conversion Rates – Many online marketplaces have their own currency conversion capability yet they typically do not provide an optimal rate. Some charge as much as 5% on top of the prevailing “wholesale,” “mid-market” or “interbank” rate which is no bargain. Most importantly, be sure to compare providers by asking them about fees or margins on each transfer and know the exact amounts you will receive in your preferred currency
- Let’s Talk Rates! – You will hear the term wholesale, mid-market, or interbank rate. This is the rate banks use to exchange large amounts of currency with each other. This rate is what is often used on conversion tools to give you an indication of how the currency markets are moving yet almost no one gets these rates. Instead, banks and currency exchange providers like OFX add a fee or a reasonable margin on top of the rate. What matters is how much is added. Generally speaking if you are working with a company who specializes in currency exchange you may get a better rate than a bank or marketplace that provides the service because their clients ask for it – not because they specialize in it.
Rely on personal service when you need it – When it comes to money, it’s normal to be concerned that your money will arrive safely at your intended destination. Many online currency specialists have 24/7 customer support that can help you understand the details of your transfer and make sure everything is set up properly, regardless of which time zone you are in. When you talk to the right person you can also receive insight and strategies to help you manage currencies based on what the experts are seeing. At OFX, there are OFXperts available to speak 24/7 to help marketplace sellers keep their online businesses running smoothly around the clock.
Managing a global online business in international marketplaces is easy in some ways and hard in others. With the right tools and support you can streamline and simplify some of your business work-flows – especially managing marketplace proceeds in multiple currencies. When you are ready to make a global money transfer or learn more about global currency accounts try OFX.
