International Finance for Ecommerce

Use multi-currency platforms to manage incoming and outgoing payments in one place.

Utilise payment gateways, global accounts and access new markets with ease.

September 30th, 2024

Disclosure

The ecommerce industry is completely global, but companies can be edged out of markets where a currency risk strategy is not in place.

In particular, ecommerce companies are exposed to currency risk in a number of ways:

Higher cost per sale where a cross border transactions has a weak exchange rate
Profits eaten into for materials where large scale purchases are made internationally and without a forward contract
Unable to break new markets where setup costs can be higher and payment methods can be different
Increased ad spend in different countries, either through an invoice to a supplier or direct to ad platforms like Google Shopping

Using a cross border payment solution will provide access to cost effective payment gateways for international payments, and access to new markets.

Key problems solved

Access to expand on marketplaces

Expand into new marketplaces like Amazon and Etsy easily with supported plugins and integrations. These allow you to be paid in a local currency and convert at the time of withdrawal.

Access to expand in new countries

Expand online stores into new territories with multi-currency payment gateways. These will allow for payments to be taken, and held, locally. This reduces currency conversion cost and allows you to make outward payments at a later point with no conversion, or convert payments when the exchange is most beneficial.

Ability to take regular payments

Multi-currency ecommerce gateways also support subscription options for regular transactions. These again can allow for subscriptions to be managed internationally with the same freedom on payments.

Ability to pay agencies, contractors and suppliers

Pay supporting agencies or suppliers in their local currency and avoid being hit with fees for sending or covering any fees associated with spend. Keep track of spend in different markets with virtual cards and tags in accounts.

Management of currency risk

Work with providers to reduce currency fluctuation risk associated with large wholesale costs and international spend. Use tools like limit orders or forward contracts to pay suppliers.

Recommend Ecommerce provider

Airwallex is our recommended provider for e-commerce companies. They offer the most flexibility on card use, a payment gateway, and a strong amount of local multi-currency accounts.

Visit Airwallex