Editor’s Note: The following is a guest post by Minnie Katzen Mayer from Payoneer.com
The internet has birthed a new world, in which merchants from all over the globe can reach customers as if they ran a brick-and-mortar shop in their very neighborhood. Widespread access to the internet, as well as improved international shipping systems, have enabled sellers to bridge gaps that span oceans and multiple timezones. There remains, however, a single most significant obstacle to selling merchandise across the seas – international, cross-border payments.
Companies that successfully manage the ins-and-outs of cross-border payments stand to reap the highest rewards in the modern marketplace. Navigating payment and withdrawal methods, exchange rates and safe transfers are key to the healthy operation of global businesses. What can your business do to champion the online payments world?
1. Get a grasp of currency exchange rates
One of the biggest challenges with dealing with international sales is the difference in currency; currency exchange rates are based on a multitude of factors, such as inflation, the strength of both economies involved, confidence in the government, and interest rates.
When receiving a payment from a foreign market, the cash transaction converts from the payer’s domestic currency to your own. This exchange can occur at various stages of the payment process, and exchange rates can differ vastly depending on the body that handles the conversion. Exchange rates fluctuate on a daily (and sometimes hourly) basis, which can greatly affect the sum that you ultimately receive.
You can tackle this guessing game by utilizing a reliable global payment platform like Payoneer. This ensures competitive conversion rates as well as localized solutions for receiving and withdrawing you payments.
2. Make it easy for marketplaces to pay you
Bridging the gap between your buyer, your marketplace and your pocket doesn’t have to be complicated. Marketplaces like Amazon.com and Wish are partnered with Payoneer, offering easy access to funds for Payoneer users selling on these platforms. Are you selling on a marketplace that requires you to have a US, UK, EU or JP local bank account? Payoneer offers users access to local receiving accounts in these countries. This makes it easier for marketplaces to send you your funds and saving you the hassle of opening multiple worldwide bank accounts.
3. Maintain a healthy cashflow
Whether you’re receiving funds from buyers or paying your suppliers, the well-being of your business relies on timely access to funds. While bank account transfers (also called wire transfers) might seem like the best option for moving money around, Financial Web reports that international transfers can take up to 15 days to complete, and the receiver is often slapped with some hefty fees.
Payoneer’s multi-faceted payment solution allows you to make a payment to other Payoneer users for free with just the click of a button. What’s more, there’s no 15-day wait for the transfer to be complete; in most cases, the funds are transferred within 2 business days.
4. Get timely, flexible access to your funds
So, assuming you’ve got your online store set up, you’ve managed to get paid by marketplaces and pay your suppliers and contractors. How about accessing your funds? Whether you need them to pay rent on your office space or buy groceries, a solid payments solution isn’t worth much unless you have easy access to your money. Payoneer offers two main options for users:
- Withdraw your funds to your local bank account in your local currency (don’t worry, the fees and handling time are still much lower than international wire transfers).
- Apply for a Payoneer MasterCard® , to be used like any of your other credit cards.
When dealing with international payments is no longer an issue, you can go back to focusing on the growth of your company. Strong payment solutions can open up a world of opportunities for sellers, from exploring new marketplaces to creating new supplying and manufacturing relationships. Don’t let red tape and high fees hold you back.
Disclaimer: The opinions and recommendations expressed in our guest posts are those of the authors, and do not necessarily reflect the views of SellerEngine or its employees.