Selling internationally can open up a new market for your business and international sales can help to grow your business. An important factor for all international resellers selling online is the exchange rate which will affect your income, costs and ultimately your profit margin. Ignoring exchange rates when selling overseas compared with managing your exchange rate exposure should be a simple choice if you want to be competitive and be successful in selling to international markets. Whether you sell on eBay, Amazon, via a dedicated website or you are a supplier with a warehouse shipping internationally currency exchange rates will affect your business.

Amazon Marketplace - International sales

Sell on Amazon abroad. Overseas sales can be the success factor for any business. When selling overseas online with eBay you will need to keep track of currency exchange rates.

eBay Marketplace - International sales

eBay sellers can sell goods internationally and accept payment in numerous foreign currencies. Exchange rates will affect the amount of money you receive in your local currency. It is worth calculating the costs of fluctuating exchange rates when selling overseas on eBay. You may need to constantly revise your prices or you may decide to use a Forward Contract which basically allows you to lock in todays exchange rate for currency transactions in the future (this will ensure you know with certainty your ongoing costs and cashflow). Alternatively you could exchange currency in bulk when the exchange rate is most favourable.

If you have a business on eBay you will be using PayPal too. Read more about using PayPal with foreign currency exchange rates.

Websites - International Sales

Many businesses will be suited to trading within the country it is located due to the high cost(s) of international sales. For example, international postage may make the business uncompetitive compared with businesses already trading within a country. Another factor may be the location of suppliers making it prohibitively expensive to trade internationally.

If, after doing your research, selling on an international scale is possible, then there are gains to be made. For example, if you double sales by shipping abroad you will likely be benefit from 'economies of scale' and thus be able to reduce your costs such as by negotiating better buy-in prices with your suppliers. You may also be able to outsource part, or all of, your distribution network overseas depending on where the goods being shipped abroad are originially located.

Some products are only available in specific countries making it advantageous to export goods to fulfil the overseas consumers demand for the goods.

If the online international business website grows significantly, you will likely benefit from being located in various countries which will help reduced postage costs, etc.

If you are selling a service, which does not need to be in any particular country, locating, for example, a telephone call centre in India may make sense where labour costs are cheaper than other world regions.

Income and costs overseas

If you buy from abroad and sell to the same country this will reduce your exposure to the affect of exchange rates. Some companies may therefore benefit from having local suppliers in each country that the online business sells to. If this is not possible, the shipping goods overseas will vary in price and the income you receive from each sale will change with the exchange rate.

Translate your website

The benefits of translating your website can also be beneficial for overseas customers to understand the reasons for buying your products and services compared with a local or other foreign retailer.









Currency

Currency