Online marketplaces and large scale Black Friday events make it easier to reach out to global online retailers, and buy via the internet. Often you can take advantage of pricing disparities compared to your own country, as well as international currency movements.
This also works for sellers and recently, SMEs in the UK have expanded their exporting capabilities, building international businesses and accessing global consumer demand. Thanks to the devaluation of sterling, exporting products from the UK is more profitable and the development of sophisticated, trusted online marketplaces and broad payment options through money transfer providers (with more competitive rates), make it a more streamlined process and easier to carry out business abroad.
What are the costs?
Currently in the UK if you are buying in items from abroad, you are liable to pay VAT, duty and fees for dealing with the transaction. Usually the courier, Royal Mail, Parcelforce for example will send you notification of the item you need to collect and the associated fees that you are required to pay.
If you are based in Australia, there has never been a charge on purchases made that are under AU$ 1,000, which covers most low value overseas purchases. However, changes are taking place to the current tax system that will see GST being applied to any import, regardless of value.
These will come into effect from July 2018. So if you are considering taking advantage of exchange rate movements or are looking to purchase particular items, you have a short timescale to make your purchases.
Carrying out an online money transfer through a currency transfer provider will save money on bank transfer fees and give you a more favourable exchange rate. You can always check out the value of your exchange and how much money you could save over a bank transfer. Our comparison tool contains details of the most cost-effective money transfer companies globally. Learn how to compare money here
Online marketplaces
Our buying confidence in online market places has grown in general, in part to the normalisation of purchasing products online (we trust it now we’ve been doing it for some years) and thanks to the reputation of the online marketplaces that exist such as amazon, ebay, etsy.
They are keen to secure their brand equity and reputation, so will act quickly on any negative feedback with regards to a retailer or seller. This gives more confidence to the buyer that they are purchasing through a reputable site and getting what they want.
Before you make those purchases, remember to consider the seller’s reputation. What do the reviews say about quality of products, exchanges and refunds or returns policy? Also, think about how long it might take for the item to get to you. You might be waiting weeks for your keenly priced item, so if you are after something as a Christmas present for someone, you may want to place your order quickly.
Taking the pain out of transferring money internationally
Often sellers choose to accept payments through international currency payment providers who have links with online marketplaces, such as Currencies Direct or World First. On top of this, the ability to make payments in international currency is much easier these days,with many currency providers offering apps that make transferring money easier when you are on the go. This takes the headache out of making and taking international payments.
If you want to avoid the costs of transferring via banks, you can make regular payments or transfers fee free with some international money transfer providers. This is also good for when you want to make a larger currency exchange and if you want to lock in a rate in advance providers offer future contracts between 2 days to 2 years, although these are often used with significant money transfers, such as house purchases or where you want to make a large money transfer and guard against potentially unfavourable currency moves.
- Have a look at our regular payments guide which may help with regards to making regular payments abroad
