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New e-tail platform to save transatlantic sellers thousands

  • New online platform from Currencies Direct lets users collect sales in dollars
  • Up to 40% of British e-tailers deal with US customers

LONDON, 19 January 2015: E-tail businesses selling to the US could save tens of thousands lost in fees and exchange rate fluctuations with the launch of a new online payment system from Currencies Direct.
Aimed at sellers trading on international online marketplaces like Amazon, the platform gives e-tailers who trade across the Atlantic access to a US bank account, saving them up to 3% of sales turnover that would be otherwise lost in commission and unfavourable exchange rates. 
The new platform means e-tailers can more easily collect payments in the same currency without converting it, which will provide a simple and cost-effective way of transferring money back into the UK. Rather than having to convert every payment at the time it arrives, they will be able to accumulate funds in the US in dollars and transfer money in lump sums, choosing when to convert into their home currency; weekly, monthly or just when the rate is right.
 
In addition, the platform allows e-tailers to keep abreast of their global earnings in dollars, pounds and euros and adjust prices accordingly to maximise profits. E-tailers can take advantage of the dollar being significantly stronger against the pound in the summer by slashing prices to increase sales – with the same margins as they enjoyed earlier in the year, but with a higher turnover.

According to Currencies Direct analysis, up to 40% of British e-tailers use dollars, while other figures suggest there are 34.1 million online cross-border shoppers in the US, spending $40.6 billion in 2013.1 This is expected to rise to 41.8 million shoppers spending $80.2 billion by 2018, making it a crucial market.


Phil McHugh, Currencies Direct trading floor manager, said: “Whereas in early July sterling was trading at 58p to the dollar, this has now risen to a near-18-month high of 66p. British e-tailers selling to the US in dollars are now finding that they’re getting substantially more bang for their buck. It’s therefore important that they make the most of their improved margins and don’t see it eroded by commission and fees when transferring their earnings.

“At the same time, with a general election in the UK, continuing uncertainty in the Eurozone, and the plummeting price of oil, it pays to be flexible in how you price your products and when you convert earnings back into Sterling. This platform will allow them to do just that.”

Currencies Direct also offers euro and Sterling accounts for online sellers and has recently created a dedicated new online home for e-tailers: www.currenciesdirect.com/e-tailers. This includes Knowledge Hub, collecting a range of news and opinion relevant to online sellers.
 

About Currencies Direct
Currencies Direct is one of Europe's leading non-bank providers of currency exchange payment services. Our aim is to make foreign exchange and international transfers easy, efficient and informed. Our clients range from SMEs to large corporates and we use our extensive experience to enable businesses from all sectors to mitigate risk and achieve substantial foreign exchange savings. As one of the first financial services companies outside of the banking industry to purely focus on FX, we are now trusted by over 150,000 clients and are authorised by the FCA.

Headquartered in the City of London (United Kingdom) with operations in Europe, Africa and Asia, Currencies Direct is part of the Azibo Group, a privately owned investment company.

www.currenciesdirect.com




1 Pay Pal, Modern Spice Routes - The Cultural Impact and Economic Opportunity of Cross-Border Shopping
 

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