Currency Exchange Services
When you’re ready to expand your seller business to the various global Amazon marketplaces, one of the scariest aspects can be working with foreign currencies. Values fluctuate, expectations differ, and some currencies can’t even interact with various aspects of your business. However, you shouldn’t let that stop you from expanding to a new Amazon marketplace. With an overview of how foreign currency exchange (FX) works and a solid vendor that can act as a partner for you and your business, you can be up and running in a new country in as little as one day.
How Foreign Currency Exchange (FX) Works
Exchanging foreign currencies is functionally similar to “buying” that currency with another (often, your own local currency). Just like any other product, there are many places that will sell you foreign currencies (or your own local currency for foreign currencies) ranging from professional international business vendors to kiosks at the airport. The price you pay depends on a couple of factors:
1) The exchange rate used by the vendor you are exchanging with (more on how this is calculated below).
2) Any service fees that the vendor charges—this can be a flat fee per transaction or a percentage of whatever amount you are exchanging per transaction.
As a small business owner, you’ll find the most savings with a vendor who can offer you the lowest fees for services that meet your business needs. Service fees often fluctuate according to transaction type, convenience of the exchange (this is Amazon’s primary selling point despite having very high service fees), and transaction size. To ensure you get the best return on investment, you need to research which vendor can offer the best rates for what you need.