Marketplace sellers can save big on money transfers and payments
As an increasing amount of business on marketplaces such as Amazon becomes international, sellers should consider cheaper ways of making payments and sending funds in foreign currencies. It’s possible, with a small change to a seller account, to save up to 75% on currency exchange fees managed by online marketplaces...
The value of the cross-border online retail market is expected to pass $300 billion by 2018.
“However, when you sell on international marketplaces, and generate sales in foreign currencies, you can lose up to 4% of your turnover in exchange rate conversions. Online marketplaces are not known for offering attractive currency conversion rates,” notes Zane Piranditta, of the UK-based foreign exchange broker and international payment provider Currencies Direct.
“The opportunity for international marketplace sellers to use our service cannot be underestimated especially in a time of economic and political uncertainty which is reflected in the currency markets,” Piranditta points out. “Furthermore with Brexit on the horizon and no trade deal yet agreed, those purchasing and selling goods from overseas may see an increase in tariffs and fees associated with international trade. So it is imperative that those selling internationally maximise all their profits from sales without delay, Piranditta says.
“We, at Currencies Direct, offer better rates in comparison to the banks, and we provide marketplace sellers with an effective international cash management solution. Companies using marketplaces to sell internationally can use our e-tailer Collection Accounts to gather their sales proceeds and withdraw money when it suits their needs,” Piranditta notes.
Making the change is easy.
Sellers may start receiving payments from online marketplaces via Currencies Direct or another similar service. To do this, sellers need to upload their Currencies Direct Collection Account details, for example, to their seller central profile.
Once the Collection Account has been opened, Currencies Direct will send the seller a confirmation of the relevant bank details in a pdf certificate. On the Bank Account information screen, sellers should select the option “Use a new bank account” and enter the Collection Account bank details found on the confirmation of the banking facilities certificate (pdf).
Sellers should also be aware that marketplaces carry out the currency exchanges automatically, which means the seller is not able to take advantage of favourable market movements, Piranditta explains. Instead, through Currencies Direct’s local Collection Accounts, the revenue from sales can be stored, and sellers can convert the currency when best suits them.
- Read our Currencies Direct review
- Read our money transfer mobile app reviews
- Make an international money transfer comparison
