The international trading opportunity is enormous and merchants can make more from overseas trade if they get the know-how. Just surfing turbulence is one thing, but could you also be harnessing volatility for greater profitability? We think so.
Most of the marketplace merchants on Tamebay are already trading overseas and shipping goods to shoppers in other countries. Typically that will be using marketplaces and the services they provide such as Fulfilment by Amazon or the eBay Global Shipping Programme in the first instance.
What are the key areas of concern and the causes of volatility in the foreign exchange markets? We asked Tamebay readers in a survey, in association with Currencies Direct, to find out. And we learnt a lot and we’re certain you’ll be interested by the findings too.
The referendum decision of 2016 means the UK will leave the European Union in 2019 (perhaps with a transition period) and that is the major concern and has seen a major depression in sterling since the result.
The chicanes of Brexit negotiations
If the Brexit referendum introduced a rogue element in general, the ongoing discussions and negotiations offer a day-to-day volatility. Individual announcements and statements have an impact on currencies. Sometimes, good, other times bad.
The election of President Trump, concerns about Russia, economic announcements from economic powers and a myriad of international disagreements also mean that currencies can fluctuate greatly on global markets on an hourly basis.
Solutions and ideas
It’s impractical for merchants to spend their day monitoring currencies so that’s why you are best advised to call on an expert service because options are available to help you harness the volatility in international currency markets. And that’s exactly what we explore in our new free to download white paper.
We urge you to consider, for instance, forward contracts when it comes to making stock purchases from overseas or repatriating funds from the likes of Amazon or PayPal. Basically, and lots of merchants are failing to grasp this opportunity, it’s very easy to get better exchange rates and boost the bottom line, by engaging a foreign exchange specialist.
You can find out much more in our new white paper called Harnessing volatility: maximising profitability on international ecommerce sales. We’ve collaborated with foreign exchange experts Currencies Direct to bring you solid and practical advice to help you confidently sell more overseas.