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Top Tips for Etsy Selling Success

Etsy is one of the top global online marketplaces, and it is especially favoured by creative individuals who wish to sell their custom, handmade products and artwork online. As of early 2017, the site averaged 32 million unique monthly visitors, so Etsy is a viable platform for sellers who want to reach a wide audience and generate the profits necessary to sustain an online business.
 
Beyond selling domestically, Etsy also offers you the opportunity to expand into the global marketplace. But where to start? Thankfully, the site has made it pretty easy to launch your worldwide operation, and a few helpful tips and strategies are below so you can go global with confidence.   

The benefits of selling internationally

By expanding your Etsy shop into an international marketplace, you can harness the power of buying trends that occur throughout the year in various parts of the world. And that diversification could help you maintain profits even when buying activity slows down at home.

Plus, even if you are new to selling on Etsy, you can offer international shipping as a means to immediately open your business up to a larger customer base, especially since buyers from abroad may narrow their searches down to those sellers who are willing to ship internationally. And if you are located outside of the United States, shipping internationally will also allow you to access the U.S. buyers that make up a large portion of the shoppers on Etsy.

Even though you will need to make some adjustments to your listings by providing new shipping options and rates, as well as adjusting your delivery times, it will be worth your effort to go global.

Attract the attention of international buyers

In a few simple steps, you can convert your Etsy seller account into one that will attract global shoppers, as well as allow you to ship your orders internationally:

  1. Translate your listings with the handy “automatic listing translation tool.” In this way, your listings can be read by a wider audience.
  2. Add appropriate tags and keywords to your listings so that international shoppers will find your items, even if they go by a different name abroad.
  3. Set international shipping as an option on the products in your shop. Also, having clear ship-to destinations within your listings will help your items show up in the appropriate search results.

Establish your location and shop policies  

After filling in your location in your Etsy profile so that international shoppers will know where their orders will be coming from, it is also a good idea to provide the weights and dimensions of your products, in both U.S. and metric measurements. This information will help buyers know what to expect when they shop from you, as they will be responsible for the shipping costs.

The “Shop Policies” section of your profile gives you the opportunity to establish that you offer international shipping. You can use this section of your profile to concisely and clearly state what you are offering to customers, including shipping times, exchanges and refunds, duty fees and customs fees, and payment types. Keep in mind that these policies are meant to protect you and the buyer, but they are also designed to give the buyer confidence in your shop as well.

Create your shipping profiles

A great way to save time when it comes to adding your shipping rates to your Etsy listings is by setting up shipping profiles. With this handy tool, you can update several listings in a shorter amount of time, and you can also set up different shipping profiles for the various items in your shop.

Setting up a shipping profile is pretty straightforward.

  1. When you are creating a new listing, visit Shop Manager and then click on “Listings,” followed by “Add a Listing.
  2. Find the Shipping section, where you can then select if you want to have your rates calculated for you or if you want to enter them manually.
  3. Fill in details, such as where you are willing to ship your item, the processing time that a buyer should expect, your location, the product’s dimensions, and shipping and handling preferences,
    including domestic and international fees or shipping upgrades.
  4. Click “Save as a Shipping Profile” to be able to use your new shipping profile on other listings as well.

As an alternative, you can set up a Shipping Profile whenever you want to by simply:

  1. Heading to your Shop Manager page.
  2. Clicking “Settings” and then selecting “Shipping Settings.”
  3. Selecting “Add a Shipping Profile.”

Regardless of how you first set up a shipping profile, you can always edit it later on if you change your mind.

Consider the fees that come with international shipping

Whenever you ship an order internationally, it might be subject to fees that are set by the destination country, as well as customs duties and import taxes. Certain nations may even require that you provide specific documentation prior to sending your products abroad. As the seller, it is your responsibility to ensure that the package and its contents will comply with both import and export laws, as Etsy will not bear any responsibility.

When it comes to customs clearance fees, taxes, and duties, which can vary from one nation to the next, buyers are generally responsible for covering these costs. It is difficult to predict which fees, if any, will end up being applied to any of your shipments. Also, Etsy doesn’t expect you to calculate these taxes and fees, or collect them. That’s why it’s important to clarify that the buyer will be responsible, so make it a point to include this in your shop’s policies.

Receive international payments

After you have made an international sale, it is time to collect those profits and make sure you’re getting the best possible rate when it comes to transferring foreign currency revenue back to your home account. OFX offer local currency accounts in USD, EUR, GBP, CAD, AUD, JPY or HKD to funnel your marketplace profits into so you can transfer them home at the best possible rate (rather than letting some of the larger payment providers take a much bigger chunk off your bottom line). Be smart about how you taking international payments – managing your global income through OFX for Online Sellers could help you save upwards of 75% whenever you bring your money home.*

Keep customers coming back

With an attractive inventory and an Etsy shop that states its international shipping policies clearly, you can keep customers coming back for more. In time, you could grow a global online business of your own.

*Average savings based on published rates of ANZ, Westpac, NAB and CBA on a single transfer of AUD$10,000 to USD between 21.2.17 and 2.3.17. Transaction costs excluded. Quoted savings are not indicative of future savings.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

Top Tips for Ebay Selling Success

eBay is a global online marketplace that allows shoppers to search for an array of products, while also giving independent sellers an opportunity to build an e-commerce business of their own.
 
As of 2017, eBay has over 169 million buyers and it is one of the top online shopping sites in the United States. More than 100 million monthly visitors check out eBay, and the brand has also created one of the best mobile shopping apps in the U.S.1
 
For online sellers who want to grow their business and enter the international marketplace to take advantage of buying trends in various countries throughout the year and avoid stagnating profits, eBay could be a viable platform. If you are interested in learning how to sell internationally on eBay, the tips below will help you get started.

Sign up to become an eBay Seller

Before you can begin selling your products internationally, you need to set up your eBay seller account by registering with the website.

During the setup process, you will need to confirm your name and address, as well as your phone number. Then you will need to choose the automatic payment method that you will use to pay any required seller fees or Money Back Guarantee reimbursements. And the site also recommends getting PayPal Verified too. 

After your account has been set up and approved, you will be allowed to start listing and managing your inventory. But if you wish to work on an international level, you will have to take a few additional steps.

Go the next step and start selling globally

To begin selling internationally on eBay, you will need to familiarise yourself with applicable laws in the countries in which you plan to sell your products. On top of that, you will be required to:

  1. Prove that your account is in good standing
  2. Be PayPal Verified with an active PayPal account
  3. Earn a minimum of 10 feedback points as an eBay seller
  4. Prove that your first sale was made over 90 days ago
  5. Read and sign the International Selling Agreement

List your products internationally

You have a couple of options when you are ready to list your items for sale globally on eBay:

  • List a product on another country’s eBay site by going to eBay.com, scrolling to the bottom, and selecting the country you want to sell your product in. Select “Sell” and then create the listing.
  • Utilise what is known as the international site visibility upgrade for your listing. This upgrade could be purchased in order to boost your listing’s visibility in relevant search results. If you are eligible, you will see the option to add this upgrade to your listing before you submit it, but there is a separate fee for every nation that you select. Be sure to also choose your preferred shipping option so that international buyers will know how much they will need to pay if they purchase your item.

Provided that your listings are set up in a manner that follows eBay’s guidelines, you can begin selling internationally. Otherwise, your listings might be removed and your ability to sell on the site might be restricted.

Things to consider when listing your items

eBay leaves it up to you, the seller, to perform the appropriate research in order to avoid problems when exporting products internationally. So if you are planning on listing products for sale globally, you will be responsible for ensuring that every listing and every transaction complies with applicable laws both in your home country, as well as in the buyer’s country. This is why eBay strongly encourages its sellers to devote some time to learning about the laws at home and in the countries where they are hoping to conduct business.All items sold must comply with applicable export and import laws. In other words, any products that you are planning on selling on eBay should be cleared to be shipped outside of your country. Certain products might require a special license, or they might be banned from export. In the same way, products that you sell should not encounter any issues when being imported into your buyer’s country, so it is important to check on restrictions. For example, some countries will not allow the importation of products in categories that include plants, foods, books, luggage, and clothing.  

Sellers can decide what countries they would like to ship to, and they can also select buyer requirements in order to exclude buyers from the nations that they don’t want to ship anything to.

International shipping tips

If you are a seller who is located in the United States and you are shipping your products to eligible countries, you could use eBay’s Global Shipping Program. This allows you to ship orders to a U.S. shipping centre, where international shipping experts will manage the customs and shipping process for you.

However, even if you do not use the Global Shipping Program, you could use eBay’s calculator to determine the shipping expenses to any nation. You can provide details like your preferred method of shipment, the locations you’re shipping from and to, and the dimensions and weight of your package so that you can get the most accurate cost. Learn more about your landed cost.

International buyers will generally pay for additional costs that include customs clearance fees, taxes, and duties. These will vary from one country to another. To cover yourself, it’s important to specify in all of your international listings that the buyer will be responsible for paying additional fees that are not included in the item’s price or the shipping rate.

Bring your profits home

Whenever you sell internationally, you need to figure out how you will bring your money home. While other payment providers can hit you with high transaction fees and margins, OFX’s Online Seller account allows you to keep more of your earnings by helping you save up to 75% whenever you transfer your money into your domestic account.*

For additional tips and guidance on how to do business internationally the smart way, check out our Guide to Doing Business Overseas.

Maintain your international eBay business

Once you get the hang of using eBay to sell your products around the world, you can sustain an international online business that will give you the opportunity to earn a passive, or perhaps even a full-time, income. 

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16.  Quoted savings are not indicative of future savings. Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

Selling on Etsy – an Introduction

Etsy is an ideal option for any creative individual who wants to launch an online shop to sell their handmade products globally. The massive online marketplace boasts 24 million shoppers from around the world, and those buyers spent over $2 billion in 2015. This means that, with the right strategy, you can start generating profits with minimal investment.

What Makes Etsy Different?

With so many online marketplaces to choose from to sell your goods, you might be wondering what makes Etsy worthwhile.

First off, Etsy is known for helping shoppers find handmade items, as well as vintage goods, that they can’t find anywhere else. It isn’t the site that people think of when they want to shop for products that are mass-produced and easily found elsewhere.

Etsy shoppers also receive convenient recommendations that have been tailored to meet their preferences and tastes. This means that your items can get in front of more people who are more likely to be interested in what you have to offer.    

Many of the items on Etsy can be custom ordered, and some sellers even produce their items as orders are placed, rather than having an inventory. As a seller, this means you’ll have less to worry about, and less upfront investment.   

What You Can Expect When You Sign Up

Etsy makes it easy for people to set up their online shop and start earning profits from sales right away.

After setting up your account, you will need to establish your currency and your location. You can also choose a memorable name for your storefront.

Then you can pick your preferred payment methods to set how you wish to get paid, and you can choose your billing method to pay your Etsy fees with ease.

Once your account details and payment methods are in place, you can begin creating and posting your listings to start promoting your products.   

Perks That Come with Selling on Etsy

  • The ability to sell online affordably: You don’t have to pay any monthly fees to keep your Etsy shop open. Instead, you pay a minor listing fee when you post an item for sale. Once the item sells, Etsy takes a 3.5% commission, along with a small payment processing fee.
  • Secure transactions: The transactions that occur on Etsy are safe for both the buyer and the seller. Payments are processed with a secure and encrypted platform known as Direct Checkout. There are also fraud detection systems and security specialists in place to protect you 24/7.
  • Additional seller protection: Etsy also offers additional seller protection, which will assist you in the event that you have to deal with a dispute from a customer over one of your transactions. Basically, if you can’t find a way to resolve the dispute with the buyer yourself, Etsy will step in and help you fix the problem via their dispute resolution system.

A variety of ways to accept payments: You can accept payments from customers via a range of payment methods that include de

Accessing Additional Helpful Tools

After creating a seller account on Etsy, you’ll gain access to a variety of valuable tools that will help you boost your sales and manage your store more effectively, even if you’re totally new to online selling.

The Sell on Etsy App will give you the ability to manage your shop from wherever you are, even when you are on the go. You can do everything, from editing product listings and responding to customer enquiries, to managing your orders with ease, even when you are on your mobile device.

Etsy also helps you save money when it comes to shipping your products to customers all over the world. In a matter of seconds, you can use your account to easily purchase and print discounted postage for any of your orders.With the help of Promoted Listings, as well as several free tools that you can implement to market yourself on social media, you can increase the number of buyers who are attracted to your shop. The more views you can get, the higher your odds will be of making more sales.

Create Your Own E-Commerce Site with Etsy’s Pattern

Pattern is a great tool provided to sellers who want to go a step beyond simply operating a shop within the Etsy marketplace. In minutes, you can build and customise your own website that will actually be powered by the Etsy shop that you are already running.

After picking your colour palette and theme, Etsy will set up a new website for you, and all of your existing listing details will remain in place. This gives you the opportunity to really showcase specific items that you want to sell, and you can also show off your own brand.

If you do decide to take this route, you can manage both your Pattern website and your original Etsy shop with the same tools. Inventory will sync automatically between the sites, and you can continue processing and shipping your orders just like you would with a traditional Etsy shop. Even the transaction fee remains the same, and there aren’t any additional listing fees because every item that is posted to your Etsy shop will be added automatically to your Pattern store.

Some of the other benefits provided by a Pattern website include:

  • Built-in SEO and mobile optimisation: This will help ensure your site will work well on mobile, as well as show up in relevant search results
  • Built-in analytics and stats: This means you can track your online shop’s progress and make any necessary changes along the way to guarantee long-term growth
  • Custom domain: Using a custom domain can help you further establish yourself as an independent business outside of Etsy

Other Ways to Make the Most of Your Etsy Storefront

Etsy could be the best online marketplace for connecting with your target audience if you are a crafter or artist who loves creating new items for customers all the time. This site will also work for you if you have non-handmade or handmade crafting supplies that you would like to sell, or if you are a seller with a vintage collection of goods that are a minimum of 20 years old.

Regardless of why you want to become an Etsy seller, consider implementing the following tips to make the most of your storefront:

  • Use Keywords: Take the time to ensure that your store is properly optimised for Etsy Search. This means really thinking about the keywords that your customers will be using to search for the types of products that you have to offer. Include relevant keywords and phrases in your products’ tags, as well as their titles and at the beginning of their descriptions. Then use your analytics tools to gauge which keywords are working and which ones need to be tweaked or replaced.
  • Provide Incentives: Customers love sales, so to get more people interested in what you have to offer, set up special discounts and deals. Distribute coupon codes to your social media audience and your email list. Beyond that, you can offer other affordable buying options by letting shoppers place custom orders within your store.
  • Market Consistently: Marketing your Etsy shop consistently will help you reach a bigger audience while reminding people that what you have to offer is special.You can start by running an ad campaign with Promoted Listings on Etsy, but you can also purchase ads on social media, as well as promote your store by creating a strong social media presence in general. Pay-per-click ads can also be an affordable way to get your shop in front of more people.
  • Use High Quality Photos: If you can’t manage to take high quality images of your products, consider asking for help from a professional product photographer with the right lighting and equipment to make every detail pop. Your images are what your customers will use to determine the quality of your items, so posting dark, grainy, or poor quality images could prevent people from realising just how valuable your offerings really are.
  • Save Money on International Sales: Etsy offers Direct Checkout to deposit your funds from international sales into your bank account. But they’ll end up deducting a processing fee, and that fee could be anywhere from 3% to 4%, so it can really dig into your profits.6,7 Whoa.You can increase your profit margins on international sales by opting to use OFX’s online seller account, which can help you save up to 75% whenever you’re ready to bring your money home.*  

A Unique Marketplace for Unique Products

Ultimately, when it comes to selling online, you have a few different online marketplaces, like eBay and Amazon, that have already done the hard work of establishing themselves and attracting customers. But Etsy is the go-to marketplace for those who want to do more than run a typical e-commerce shop.If you want to actually create something new for shoppers, Etsy is a viable outlet. After bringing your ideas to life, this site will put them in front of millions of shoppers who are looking for something different and who want to support small business owners just like you.   

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

Selling on Ebay – an Introduction

eBay used to be known as the site where you would post your stuff to auction it off, but it has changed quite a bit over the years and it is now one of the most popular online marketplaces, boasting more than 160 million shoppers.

If you’re an online shopper, you can snag some awesome deals on eBay on a wide range of products, but if you are a business-minded person and you want to start using the power of this global website, you can start selling your own merchandise to boost your bottom line.

According to eBay, the site sells a pair of shoes every two seconds, a handbag every six seconds, and a mobile phone every four seconds. Those are stats that are definitely worth bragging about, and if you want to get in on the action, it’s easy to become an eBay seller.

The Basics of Being an eBay Seller

eBay is free to use if you are planning on listing up to 50 products for sale in a month. If you want to list more than 50 products a month, you will be charged a small fee for each listing. At that point, it would be wise to invest in an eBay Stores Subscription, which will allow you to post hundreds, or even thousands, of items for free in exchange for a monthly subscription rate. Then, every time that you make a sale, a percentage of your profits will be taken by eBay and the company will send you the rest.

Listing your inventory only takes a few minutes. All you have to do is take some high quality photos of each item (you are allowed to post up to 12 photos at no charge), and then post them along with a title and description.

eBay will even help you determine a competitive price so that customers will be more inclined to purchase from you rather than other sellers. Then all you have to do is sit back and wait for customers to find your inventory and purchase it.

Listing Formats and Fees

One of the features that distinguishes eBay from other online marketplaces is the fact that you can choose to list your item as an auction or at a fixed price. As you are creating a listing, the site will help you determine which option would be better for your inventory so you can figure out how to sell your products in a shorter amount of time.

If you are planning on selling an item that is rare, one-of-a-kind, and not typically found on eBay, it is best to go with an auction style listing. This could also be a good idea if you have an item that is in high demand but in short supply, even if there are other sellers on eBay who are offering it at the time.On the other hand, if you have products that are already selling consistently on eBay, and if there is a large supply, you’re better off going with a fixed price listing. This will ensure that you can competitively price your inventory to generate sales, based upon a bit of research into what other sellers are making on the same items.

Other Perks of Selling on eBay

When you sign up and get your seller account going, you will gain access to a global community of shoppers. On top of that:

  • eBay will provide you with shipping labels that you can print out right at home.
  • You will even receive big discounts (up to 25% off) on the cost of postage to ship your items to customers. (At least that’s what it says on their U.S. site.)
  • After you make a sale, if you decide that you don’t want to ship the item by mail, you can set up a local pickup location and time with the buyer instead.
  • You will also have seller protection, which utilises automated detection systems to monitor transactions. This creates a secure e-commerce marketplace on which you can start generating a steady stream of income.

Those are some nice perks!

Getting Paid the Smart Way

After you make a sale on eBay, your profits can be securely and safely handled by PayPal for a fee. You can link your PayPal account to your listings so buyers can submit their payments directly. However, another way to receive your money is by accepting credit card payments from your customers, if you don’t want to work with PayPal.

Because eBay is a global marketplace, you can certainly sell to consumers from all over the world, thereby increasing your customer base and taking advantage of buying trends in other countries. But international sales that are made online can be tricky, because you can lose a percentage of your profits when it’s time to bring your money home. As of January 2017, PayPal charges 3.9% plus $0.30 on each transaction sold to buyers outside the U.S., which can really cut into your bottom line. To avoid such heavy costs, many sellers of all sizes choose to take advantage of OFX’s online seller account to save money on every international sale.

With OFX, you could save on the costs related to exchanging currencies when bringing your money home. Your funds will be delivered securely and rapidly once you create your receiving account, which is compatible with the eBay online marketplace.  With your virtual international account(s), you can receive payments in USD, EUR, GBP, AUD, HKD, and CAD. It’s also free to sign up, so you keep more of your hard earned cash.

Let eBay Do All the Work

eBay Valet is the ideal service for those who want to get into the world of e-commerce but don’t have a lot of time to dedicate to keeping inventory and making shipments.

After choosing the products that you want to sell on eBay, all you have to do is use the site’s prepaid shipping labels to submit your items to an eBay valet. If there is an eBay Drop-Off Centre or FedEx Office nearby, you can forgo the shipping altogether and instead just drop off your inventory.

Then all you have to do is relax. The valets, who are experienced experts at selling on eBay, will take care of the rest. When an item is purchased, you will receive a percentage of the earnings, depending upon the sale price. The higher the sale price, the greater your earnings will be.

Successful Selling Tips

Selling on eBay could be something you do every now and then when you find items around the house that you no longer use, or you can get serious about your seller account and turn it into an online business.

  • If you want to set up an online shop that will consistently earn profits, it all starts with your inventory, so you need to begin by determining what products you want to sell. A lot of successful sellers set up their storefronts after establishing a theme. You can find a popular niche to sell specific items that are of interest to you so you can be enthusiastic about what you’re offering. This also allows you to hone in on a particular target market.
  • Researching what products are selling really well on eBay, and which ones sell at the highest prices, will also help you decide upon the best direction to take for the biggest possible earnings. Performing this type of market research will help you focus in on an audience of motivated buyers. You can more easily see what people are searching for and what they are willing to spend a lot of money on, and those factors will drive your decisions.
  • Once you decide what products you want to sell, you’ll have to figure out where your inventory will come from. Vintage items can be found at local flea markets, while brand name items can be purchased at a discount and then sold at a higher price. You can even find suppliers who will sell you products in bulk at a discounted rate so you can list your inventory at a price that will get you a great return.
  • When it comes to making your listings, spend time writing professional descriptions. If you need help in this area, it would be wise to hire a writer who can clearly describe what makes your products so special.To complete your listing, take high quality images of your products from various angles. If you don’t have the equipment or the know-how to take stellar pics, hiring a local product photographer is the way to go.
  • Selling online can be a challenge when customers aren’t satisfied, and this can happen on eBay. As a seller, you will need to be prepared to provide outstanding customer service to keep people happy and coming back for more. When you are able to make sales consistently, and when you are able to get great reviews by keeping customers happy, eBay will classify you as a Top Rated Seller. This distinction will serve like a badge of honour, as it will prove to other potential customers that you are a fantastic and trustworthy seller.
  • If you’re handling the shipping of your items, always send them promptly once they’re sold.

Provided that you are able to send high quality items right away to your customers, you will start receiving positive reviews on your shop, and that will entice even more buyers to purchase from you.

Getting Your Start in E-Commerce

If selling on eBay sounds like something that you want to do to get your feet wet in the world of e-commerce, a little preparation goes a long way. Do some internet research for best practices when selling on eBay or check out our Resource Hub for online sellers to learn more about the ins-and-outs of online selling.

*Average savings based on a sample of published transaction fees for cross border payments provided by PayPal dated 3.1.17. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

A Short and Simple Guide to Selling on Amazon

Did you know that more than half of all online consumers will start an online shopping search on Amazon? And even when shoppers locate a product on another website, about 90% of people will go to Amazon to compare pricing and selection? Selling on Amazon is the place to be. In 2016, Amazon Prime members in the United States alone numbered 63 million!

But the popularity of online shopping hasn’t only benefited consumers around the world; it has also given an opportunity to aspiring business owners. With the help of Amazon, you can set up an online shop of your own and start generating an income stream surprisingly easily.

Selling on Amazon isn’t just for e-commerce pros either. Instead, the system has been designed with novices in mind. In a minimal amount of time, you can set up your shop and start selling to customers around the country and across the globe.

Amazon’s Success with Third Party Sellers

Amazon has been allowing individuals to sell their products on its website since 2000. As a result, over 40% of total unit sales on Amazon are completed by third party sellers, and every seller has the chance to list items in myriad categories to reach a variety of customers.

When you sell on Amazon, you also have the option of shipping items to customers yourself or allowing Fulfillment by Amazon (FBA) to take care of keeping products in inventory and shipping them, so you can keep your logistics simple.

Selling as an Individual or as a Professional

When you set up a seller account on Amazon, you have the option of selling as an individual or as a professional.

As an individual seller, you will have the opportunity to list products in more than 20 different categories. Amazon will take fees from each sale. They include a fixed fee and other fees, but you will keep the remaining profits. This plan is best if you are predicting that you will only sell 40 items or less each month.

As a professional seller, you’ll be able to fill out an application for selling products within 10 or more additional categories when compared to individual sellers. However, you will need to pay a fee each month to maintain your status as a professional seller, and you’ll also be charged extra fees when sales are made. Therefore, this seller category is best for those who are planning on going big and selling over 40 products each month.

Additional benefits that come with a professional seller account include:

  • The ability to control what you sell and where you sell it. All you need is a single account to control it all.
  • The convenience of bulk listing tools to make posting inventory a snap. You’ll also get helpful reporting tools.
  • The ability to customise shipping rates and offer discounts and gift wrapping for items that do not include music, videos and DVDs, software, and video games.
  • The eligibility to be included at the top of product detail pages, increasing your odds of generating more sales.

Whether you choose to sign up as an individual seller or as a professional seller, you have the option of using Fulfillment by Amazon to handle all of the customer service and shipping. Amazon’s customer service reps will answer questions from your customers, and they will also handle returns and refunds on your behalf. This means that you can manage your online business in a hands-off, headache-free way while focusing on increasing your profit margins.  

What to Expect After You Register

After you create your seller account on Amazon, you can immediately begin listing your products for sale. If you’re an individual, you will be able to add your inventory one product at a time, but if you have a professional subscription, you can set up your inventory in batches to save time.

  • You can sell products that are already listed on Amazon by finding an item and then setting up your listing in a snap. Simply search for the product, click on the “Sell on Amazon” button within the listing, indicate the quantity that you have available, describe the condition of the item(s), and then choose the shipping options that you want to offer.
  • If you have products that Amazon isn’t already selling, you just have to provide the SKU (Stock Keeping Unit) and the UPC (Universal Product Code). You will assign the unique SKU for internal use and inventory management, but the UPC is constant throughout an item’s shelf life and can be scanned and recognised by anyone. After providing these codes, you can then submit an item’s attributes, including its title and description.

Once your listings have been created, you can sit back and wait for your sales to come in. Then you can either ship the items yourself as they sell, or you can stick with FBA and let Amazon fulfil the order from start to finish before giving you your cut of the profits.

To get paid, Amazon will deposit the money right into your bank account. Notifications will be sent when payments are transferred to your account. It really is that simple, which is why so many people have been getting their start in e-commerce on Amazon.

How to Increase Your Odds for Successful Selling

While you can certainly list your products for sale on Amazon and sit back as you wait for the buyers to come to you, if you want to increase your odds of becoming a successful online seller, you’ll need to put a bit more effort into the process. This is especially true if you are listing new products on the platform.

Optimising your Amazon listings is a lot like optimising your website: the goal is to make it easier for potential customers to find your products when they’re looking for them. Ultimately, listing optimisation is a vital step that you need to take if you wish to rank higher in Amazon’s search results.

To make optimization easier, check out the AMZ Tracker software. It’s a keyword rank tracker designed specifically for Amazon, and it allows you to monitor your products’ rankings when it comes to important keywords. With insights into keyword rankings, you will be equipped to optimise every listing to boost your sales. Plus, it also helps you track what your competition is doing, and it will notify you of negative reviews that are posted by customers so you can get in touch with them right away and take the appropriate steps to make them happy.

In addition to optimising your Amazon listings, you can also market your products in a few different ways:

  • Amazon actually has an ad program that is a lot like Google AdWords, so it’s easy to use and affordable. You will only be charged when someone clicks on a link, and you can choose from various categories so you can spend an amount that you feel comfortable with. Plus, you can tweak your ad campaigns once they’ve begun. For example, you can pause and restart a campaign at any time, or you can adjust your budget or change up your keywords. With end-to-end metrics provided by Amazon,  you can refine your ad campaigns to make them more strategic.     
  • On top of advertising right on Amazon, you can also advertise on other websites. A good way to do this is to create content about the products that you’re selling. You can then distribute that content on social media, on your own blog, and on fellow bloggers’ sites. You can even ask bloggers to review your products and include links to your Amazon listings to generate more traffic and boost your conversion rate.
  • In order to reach a broader audience, you can take the route of posting about your products on social media. Let people know how your items are designed to fix a problem, fulfill a need, and make their lives easier or more fun. Include an eye-catching image or gif to catch people’s attention as they’re scrolling through their busy newsfeed. Offer discounts, too, as a means to get people to click through and give your products a try.  

Save Money When Selling Internationally on Amazon

If you are hoping to sell internationally after creating your Amazon seller account, opting to use FBA when you are first starting out can be helpful, as it can simplify your overseas operations.

Overall, when you sell internationally online, you can enjoy the perks of making sales during buying seasons that occur in other markets throughout the year. This helps you maintain a steady stream of income without having to worry as much about slow periods.

One of the biggest drawbacks of selling internationally, though, is the high margins that are placed upon cross border payments. Amazon typically charges 3.9% just to have your international payments transferred into your bank account, so this can definitely eat into your profits.* Ouch!

You can avoid getting stung by high exchange rate margins, if you set up an online seller account on OFX. Essentially, you will be given a virtual account in the foreign markets where your products are available for sale. Accounts are available in USD, GBP, AUD, EUR, CAD, and HKD. With lower exchange rates across a variety of currencies, you’ll have the potential to save as much as 75% every time you bring your profits home.** Talk about a competitive edge!

Start Your E-Commerce Business Today

Overall, Amazon has created a variety of great options for those who want to start selling products online. Whether you are purchasing and reselling items or you have custom products that your business has developed, Amazon will give you access to everything you need to succeed.


Want to learn more about how to improve your profits when selling online? Check out our Resource Hub for Online Sellers.

*As of 19.1.17. https://payments.amazon.com/help/201212280

**Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

How Do I Set Up International Shipping on Amazon?

To set up international shipping with Fulfillment by Amazon (FBA):

  1. Visit your Seller Central page, select Settings, and click on Fulfillment by Amazon.
  2. Find Export Settings and click Edit.
  3. Select FBA Export and create an e-signature when prompted. Finalise the new account by clicking Submit.

When you sign up for FBA Export, Amazon will identify which products within your inventory will be eligible for international shipping.

Like standard Fulfillment by Amazon, you will be required to send your inventory to an Amazon warehouse. Then the Amazon staff will fulfil any international orders that you receive. They will pack and ship your orders to international addresses on your behalf.

Preparing and shipping international orders yourself

If you’d rather not use Amazon FBA and FBA Export, you have the option of shipping international orders yourself.

In this case, you’ll be responsible for housing inventory and choosing the appropriate international shipping provider that will be able to deliver your packages securely.

To include international shipping as an option to your customers:

  1. Head to the Seller Central page and select Settings.
  2. Click Edit in the Default Shipping section.
  3. Select International and/or International Expedited.

After establishing an e-commerce business with the help of Amazon, also consider signing up for an OFX Online Seller account, which could help you save up to 75%* on fees and margins when you bring your money home from abroad.

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16.  Quoted savings are not indicative of future savings. Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

What Is FBA on Amazon, and How Can You Increase Profits?

What does it mean to be fulfilled by Amazon?

When you add FBA to your seller account, you’ll ship your inventory to Amazon for storage in their global warehouses. Then, when your products are ordered, Amazon takes care of shipping the items to your customers, as well as providing customer service.   

What are the FBA Amazon fees?

FBA does come with a cost. Fees will vary depending upon the country that houses your products, whether your inventory is standard-sized or oversized, and if it’s considered media or non-media. You’ll be charged a fee per cubic foot of storage for your inventory in Amazon’s facility, along with weight handling fees when the items are shipped. There may also be fees for removal of your inventory. It seems complicated, but you can use the FBA revenue calculator to get real-time cost comparisons between fulfilling orders yourself versus FBA.

Which countries have FBA?

Fulfillment centers are located in the US, Canada, the UK, Germany, France, Italy, Spain, Japan, and Mexico.

How do I reduce cross-border payment fees when selling internationally?

FBA is really convenient, especially for international sellers, but high margins on cross border payments can really eat into your profit margins. Amazon usually charges 3.9% when you’re transferring foreign payments to your home bank account.

With an online seller account from OFX, we give you a virtual account in your foreign markets and great exchange rates across many currencies, so you can save up to 75% when you bring your money home.*

This means that if you earn $30,000 on Amazon, you’ll save a whopping $720 by simply using OFX to transfer your money instead of Amazon or PayPal. That’s a big difference!

Set up an OFX online seller account today to get the competitive edge you need in your global operations. You keep making those sales, and we’ll work on helping you keep more of your profits.

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

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IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

A Guide to Sourcing Wholesale Products

How to Source Wholesale Products

To source wholesale products you need to:

  1. Decide what you are going to sell
  2. Research supplier types (manufacturer, distributor, importer or liquidator)
  3. Compare quality, return and payment policies and pricing.
  4. Do your due diligence before signing a contract with your chosen wholesaler.  

Manufacturers vs. Wholesale Suppliers

The key to successfully running an e-commerce shop is having the right inventory that will attract the most buyers. In addition to figuring out what your customers want, you also need to be able to price your items competitively while maintaining high profit margins.

When it comes to acquiring your online store’s inventory, you have the option of going to manufacturers, distributors or to wholesale suppliers, and each of these product sources has its own benefits and drawbacks. What most new sellers find, however, is that wholesale suppliers can make it easier and more affordable to get started. Most of the time, manufacturers sell to distributors, who then sell to wholesale suppliers, who sell to a retailer.

Sourcing Products from Manufacturers

Manufacturers are responsible for producing the products that you will eventually sell in your e-commerce shop. If you can make purchases directly from manufacturers, you could gain access to the lowest prices on the items that you are searching for. After all, the fewer middlemen who take a cut of your earnings, the lower your costs will be, and the higher your profit margins can be. This is especially true if you’re pricing your products at competitive rates and generating a lot of traffic to your shop.

Working with manufacturers is great for your profits, but even though you can sometimes set up contracts with manufacturers to purchase directly from them, you will typically find that they will prefer producing large orders. They often have exclusive arrangements with distributors.

It is certainly a good idea to begin at the actual source for your products, as you never know if you can set up an agreement that will give you access to the inventory that you need at a great price. In the case of branded products, going to the manufacturer and asking them about their minimum order requirements is recommended. However, when you are starting out and your shop and budget are still quite small, a manufacturer may not sell to you directly.

Sourcing Products from Distributors

Sometimes you won’t be able to work directly with a manufacturer, as some manufacturers will only sell their products through established distribution channels, rather than directly to sellers or consumers.

In this case, all you have to do is ask the manufacturer to provide you with a list of their distributors and then contact those distributors to set up contracts with them. The good thing about taking this route is that you’ll access the most reputable distributors, so you won’t waste your time pursuing unreliable or poor quality sources for your inventory.

Sourcing Products from Wholesalers

When you are unable to forge a relationship directly with a manufacturer,  or distributor, you may need to go through a wholesaler who can also give you access to the inventory that you need at low prices.

A wholesaler will basically bridge the gap between a manufacturer and you, the customer. You can locate wholesalers that will cater to the specific niche that you are selling in, or you can instead find wholesalers that will provide you with a wide range of product options.  

As opposed to buying items at retail prices and reselling them, most e-commerce shop owners prefer sourcing wholesale products for their stores because they can purchase the items in bulk at a discounted rate. When you are not forced to pay the retail prices on your inventory, you will be able to increase your profits because you can still sell them at a competitive price while enjoying a solid margin on every sale.

Those who are first starting off will benefit from working with smaller wholesalers, but you should be prepared to pay higher prices until your inventory volume expands. As your online business grows, you will be able to move on to larger wholesalers, purchase more inventory, and enjoy lower prices

How to Find the Right Wholesalers for Your Business

According to the U.S. Small Business Administration, there are roughly 300,000 wholesale distribution companies in the United States alone, so it is best to take your time when it comes to researching your options until you find the right supplier for your needs and budget.1 If you want to see the inventory up close, you may want to attend annual wholesale conventions, such as the Gem Show or the Gift Show.

Many online sellers are also looking to China to source products at the most affordable prices. You can find these suppliers by searching for them on B2B platforms, such as Made-in-China.com, Global Sources, and Alibaba. You’ll find thousands of suppliers, and you can filter your options by those who are accredited and verified.2

Here are a few of the best ways to start your search for the wholesaler that will perfectly match your online shop’s current needs:

  • A good place to start when it comes to finding an industry-specific wholesaler is the internet. You can narrow your search by the products that you want to sell in your shop, and you can also search for wholesalers that are willing to double as drop shipping suppliers. Whether you are on the lookout for local or international wholesalers, a simple internet search can yield results that you can work with.
  • Another option would be to browse through wholesale directories like the Wholesale Network or Wholesale Central. This step might help you find the ideal suppliers in a shorter amount of time.
  • Reading through trade magazines, and focusing in on their classifieds and ads for wholesalers within your industry, can also yield good results.
  • Consider attending some trade shows, as they are good places to find wholesalers who are looking for shop owners just like you to purchase their products. You might even be able to cut a deal while you are at the show. Otherwise, you can jot down some options to perform additional research at your office later on.
  • If you are planning on selling brand name items in your shop, contacting the product manufacturers to ask them if they sell wholesale could be just what you need to get the lowest prices possible. If they won’t sell to you directly, you can ask them to refer you to one of their distributors or wholesalers who will work with you.

Beware of Fake Wholesalers

There are plenty of fake wholesalers out there who do their best to appear as though they are legitimate suppliers. Therefore, you need to be aware of the risks of running into a wholesale middleman during your internet search. These scammers could cheat you out of your money by getting in between your business and the real wholesaler for your goods. They will take your order after marking up the price for your items, and they will forward your order to the actual supplier. This means that you pay more than you should and your profit margins will be smaller than they should be.

A few of the signs that a wholesaler is not legitimate include:

  • The wholesaler wants to charge you a monthly fee or a sign-up fee.
  • You aren’t asked for your sales tax ID.
  • The supplier’s website doesn’t provide you with their complete contact info.
  • You receive claims regarding just how much money you will be able to make.
  • The wholesaler attempts to sell you additional services, or they offer you a deal that just sounds too good to ever be true.

What to Do Once You’ve Found a Wholesale Distributor

Once you think that you have found the right wholesaler for your business, your work isn’t over just yet. To be sure you are making the best decision, you can ask the wholesaler for references, and you can also do some additional research online to see if you can find any reviews or complaints from fellow business owners who have worked with them. Online forums for small business owners are also a good place to get advice from fellow online shop owners. In these online communities, you can post your questions and hear from many different businesses from all over the world.

Also be sure to ask plenty of questions to be absolutely sure you know exactly what you are getting. For example, ask about order processing times, return policies, and discounts based on volume. Order sample items to see exactly what your customers will receive, and to ensure everything is up to your standards for quality.

Don’t be afraid to negotiate the terms of your contract prior to signing. Details like the minimum order quantity, pricing terms, and delivery schedule can all be discussed if they do not work for you. And before signing, you can have your attorney review the contract to be sure you didn’t miss anything.

Diving into the International Marketplace

The great thing about selling online is the fact that you can eventually expand into the international marketplace. In the same way that you can find local wholesalers, you can also locate reliable and reputable drop shipping wholesalers from around the globe to ensure any international orders are fulfilled in a timely fashion.

Once you start making sales, you can then have your profits converted and transferred directly into your local bank account with the help of OFX’s online seller account. While online marketplaces may charge up to 3.9% to have your funds transferred from overseas, OFX can help you save up to 75% on cross-border payments.* If you’re paying overseas suppliers, you can use our risk management tools to protect your business from currency fluctuations.

Be Savvy When Working with Wholesalers

With the right strategy in place, you can more easily locate the ideal suppliers in order to source wholesale products at low prices. Working with multiple wholesalers will cover you in case one supplier raises its prices or goes out of business. If you do work with more than one wholesaler, though, collaborate with suppliers who can deliver consistent quality to all of your customers, regardless of what they order or where the products are coming from. Ultimately, the goal will be to keep your business going strong, and the right partnerships with wholesalers will set you up for success.

Ready to sell more overseas? Get in touch with one of our online selling specialists who can help you take you business to the next level.  

*Average savings based on published rates for cross border payments by PayPal.com between 26.10.16 – 8.3.17. Quoted savings are not indicative of future savings.

Sources:

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

Five things a brand should do before selling on Amazon

If you are reading this blog, then you have probably heard the success stories of many people and businesses who are selling on Amazon. Some of them are wholesale companies while others are third party and retail arbitrage sellers. There are great success stories around those types of sellers, but in this blog, we are going to focus on branded sellers. If you are not familiar with Amazon as a selling platform. Pay attention to these following facts:

  1. Amazon is the largest online shopping platform in the market today.
  2. 368 Million products are offered on their platform.
  3. Google went on record claiming that Amazon is its biggest competitor in search advertising.
  4. Pause for one second… Amazon just shipped 35 items in the time frame of you reading this.

When shopping for a product, you may recall seeing other sellers offering the same product for a lower or more expensive price or perhaps you are experiencing this as a seller right now.

Every day there are thousands of sellers on the Amazon platform, but many of them are not marketing or managing themselves properly. Our partner ASDAL is a great choice for companies who are planning to sell on Amazon but aren’t sure how to get started. Amazon is a high risk; high reward platform and it is essential you prepare your account the best way possible. Although third party sellers are great and retail arbitrage takes intelligence and grit, in this blog, Asdal have shared five things for a brand or an aspiring brand owner to consider before selling on Amazon.

Register your trademark

You’ve spent months, even years, developing your ideas, therefore, you should protect your brand at all costs. In traditional retail, your trademark would be hard to enforce, but on Amazon credibility means everything. Without a trademark, you risk third-party sellers, resellers and counterfeit products. With a trademark, you gain access to various tools within the brand registry.

Establish a product network

If you don’t have an established Facebook page, Instagram account or Twitter feed for your product then start one. If you do not have a product network, you should connect with influencers or attend conferences and tradeshows to build awareness. The purpose behind building a product network or working with a team who has a product network is to generate buzz for your Amazon launch. If you have a following and a decent sized product network.

You should prepare and plan for promotions across your account and share this to your product network. For example, in traditional retail, in order to drive foot traffic, stores will offer discounts and promotions to shoppers. The same concept applies to Amazon and overall this helps toward rankings and sales in the long run.

Separate your Amazon inventory

Many sellers use their extra inventory for Amazon sales. Starting out this way is great, but long term, you are going to need to separate your Amazon stock from your traditional sales. It is a blessing and curse when you run out stock on Amazon. For one, you can slip in rankings when you do not maintain your stock levels, and customers will order from your competition. Furthermore, it is easier to track what your warehouse team needs to send, and which products will require additional labels and packaging.

Overall, the reason as to why sellers should separate their Amazon stock levels is to ensure you allocate the proper stock each month. We recommend you conduct channel forecasting. If you are at this step, feel to reach out to ASDAL to find out more about their FBA inventory transitions program, their account management or both.

Build an Amazon team

Teamwork makes the dream work! Depending on your account size, you are going to need a team of 2 – 4 members, which ensures all questions, emails, shipments, replenishments, and cases are taken care. Also, this ensures all strategies are consistently reviewed, considered and implemented. If you are in this stage and require a team, be sure to reach out to us with any questions.

Have a point-of-contact

When you are looking to grow your company and start the move on to Amazon. It is important to have a point-of-contact for all questions. They should be the ones who communicate what your Amazon team is up to. We recommend your point of contact understand all areas of your business from the legal side to operations and marketing.

In most cases, this person can be your Sales & Marketing or community manager and, in some cases, even your general counsel. This means one team member can inform all stakeholders as to what’s happening on the platform.

If you have any questions or are ready to start the Amazon process, you can reach out to ASDAL, and they can get you started! ASDAL provide teams with a software that offers a robust Infrastructure with automation and reporting that allows retail brands to streamline management on Amazon.

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.

What is ‘Landed Cost’?

It encompasses the original cost of the item, plus costs like shipping and handling fees, warehousing fees, customs and duties, taxes and insurance, and currency conversion fees.

By knowing what your landed cost will be for every product you sell, you’ll be able to price your inventory in a way that will ensure you make a consistent profit.

Once you calculate landed cost, you’ll also be able to find less obvious fees that you can eliminate from your supply chain. With this information driving your decisions, you’ll have the power to get products to buyers in cost efficient ways.

Calculating the landed cost doesn’t have to be complicated

To calculate the landed cost for any item you sell, list out every step of your product’s journey. Start with the price that you pay to get your product from your supplier, including freight estimates and then add in the costs involved with warehousing, packing and shipping that item to a buyer. Add any duties. The tricky part comes from estimating foreign exchange rates, but there are ways to hedge your currency volatility exposure to keep your cash flow predictable. (Don’t forget that margins on cross-border payments can be up to 5% when you transfer with a bank and nearly 4% when using Amazon or PayPal to bring your profits home.)

Lower your landed cost with OFX

After crunching some numbers, you may find a few fees that are taking their toll on your bottom line. But there’s a simple solution to immediately start seeing a higher return on every international sale.

Setting up an online seller account with OFX will help you save money on currency conversion fees when you want to bring your money home. Rather than having to give up nearly 4%, we only charge 1.5% or less, which means you can save up to 75%* on conversion fees alone.

Let’s look at a really basic example, shall we?

  • Say you purchase a product for $500 and ship it for $100 (we’re keeping out taxes and other fees for the purposes of keeping this simple). Your landed cost will be $600. If you sold that single product for $2,000, that means that your profit on that single item was $1,400.
  • Sounds pretty good, right? But wait, you have to bring your money home, and Amazon will charge you 3.9% on that $1,500 sale, so you’ll have to give up $80. That means that your landed cost will be $680, and your profits will only be $1,320.
  • With OFX’s online seller account, you’d only pay $30, so you’d save $50 in margins. Your landed cost would be $630, and your profits would be $1,370.
  • Multiply that same sale 100 times, and you’ll end up saving $5,000, which is nothing to sneeze at. But the added bonus of working with OFX is getting access to a suite of tools so you can minimise your exposure to currency volatility. Most marketplaces don’t let you do that. With us, you can lock in a great rate for up to 12 months to keep your cash flow running smoothly. Plus we offer receiving accounts in 7 currencies: USD, GBP, HKD, AUD, CAD and EUR.

Even if you don’t make any other changes to the way you do business, you could save thousands by using OFX. It’s simple, it’s straightforward, and it could be just what your e-commerce business needs to get ahead.  

Looking for ways to simplify your logistics? Check out this post about Fulfillment By Amazon.

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

Sources:

http://www.nfiindustries.com/blog/understanding-total-landed-cost-your-supply-chain/

http://blogs.pb.com/ecommerce/2013/05/15/what-is-a-landed-cost-and-why-its-essential-in-global-trade/  

IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.