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When it comes to earning potential in online selling, the sky is the limit. By targeting profitable niches, doing market research, and stocking in-demand products, you can make untold amounts of money.

However, so many sellers impose an earnings ceiling on themselves. Afraid of tackling the logistical challenges of selling internationally, they stick to domestic markets. Entrepreneurs who do this are leaving money on the table – in this cutthroat industry, this action can make the difference between success and failure.

We don’t mean to minimize the challenges of selling abroad. From customs laws to shipping costs, there’s a lot to sort out. However, the pain is definitely worth the gain – you can sell 24 hours per day, rather than be limited to peak shopping hours back home.

Of all the problems an international seller faces, though, currency exchange is one of the most insidious. Most rookie entrepreneurs move money through services like PayPal, or through built-in ones like the Amazon Currency Converter.

The rates they charge varies considerably from the interbank rate – often, the margin is 4% or higher. When moving revenue regularly, this arrangement can result in thousands of dollars lost annually.

There is a better way. In this guide, we’ll show you alternatives to the exchange tools that selling platforms provide. It’s your money, after all – you should keep more of it.    

We get it – international business is tough

Running a selling business at home is hard enough. You’ve got to coordinate quarterly tax filings, handle customer service, and keep your site updated – among other things.

When you start serving customers abroad you’ll have to deal with foreign trade laws. Miss one detail and shipments might get held up by customs until you rectify the situation.

You’ll also have to account for the cost of international shipping. Do you charge customers abroad more for shipping, or do you eat the cost and accept lower revenue per head?

And as we mentioned earlier, you’ll have to exchange foreign currencies to your home bank account. Given all the issues associated with international commerce, most rookie sellers, overwhelmed as they are, use the first service they come across.

On Amazon, that service is the Amazon Currency Converter. It’s convenient, but using it comes at a cost that compounds over time, as you’ll see below. 

Amazon’s currency exchange service rips off sellers every day

There’s no denying it: Amazon is the king of online retail. At its peak on Amazon Prime Day in 2017, they handled over 6,000 orders per second. If you want to make money selling online in 2019, having an Amazon e-store is practically mandatory.

To be fair, Amazon has streamlined the act of online selling for entrepreneurs. From solving supply chain issues with Fulfillment by Amazon (FBA) to providing a steady stream of qualified traffic, they have made life easier for entrepreneurs everywhere.

However, like any other publicly-traded organization, the maximization of profit is their #1 goal. If there is an opportunity to make extra revenue without alienating too many buyers/sellers, they won’t pass on it.

As an Amazon seller, you’ll have the chance to sell in international marketplaces, like amazon.co.uk. However, when the time comes to repatriate revenue to your home country, you’ll pay dearly for the privilege.

Let’s say you made 10,000 GBP in sales today. You move it to your American bank account using the Amazon Currency Converter. They give you an exchange rate of 1.26377, allowing you to receive 12,637 USD on the other end.

Here’s the problem – the interbank rate on this day was 1.31643 – more than 4% higher the one given by Amazon. If you could move your money at that rate, you’d save more than 500 USD per transaction.      

Scores of cheaper cash transfer alternatives exist

Think all money changers are the same? They used to be until the internet changed everything. As internet businesses began to increase in number in the 2000s and beyond, they began to disrupt their brick and mortar analogues.

The minimal overhead of online companies allowed them to outflank their competitors on cost. With fewer employees to pay and less real estate to maintain, they could charge less while still enjoying healthy revenue figures.

As a result, companies like Currencies Direct can charge no fees and set exchange rates close to interbank. And yet, they still prosper.

Payoneer doesn’t just do cheap money transfers

The online money transfer industry has started to get crowded. To stand out in 2019, you need to offer related services. Payoneer does a great job of this – they provide cash transfers, but they also everything from ATM cards to receiving accounts.

Thanks to the latter innovation, Payoneer is a strong Amazon currency exchange alternative. When you receive revenue from Amazon, you can transfer it to your bank in your local currency. This move saves you from Amazon's unfair exchange rates, as well as charges levied by banks (as high as 70%).

Don’t let Amazon’s currency exchange service steal your profits

As convenient as the Amazon Currency Converter is, it can cost you thousands of dollars per year. Don’t allow your profits to circle the drain – make use of cheaper cash transfer solutions, and you’ll improve your company’s financial health.

Chiino
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