Since 1998, OFX has facilitated more than £50 billion in international money transfers for over 300,000 businesses and individuals around the globe. As a foreign exchange specialist, OFX enables online sellers to move money internationally, at the fraction of the cost of using a marketplace or bank. We asked Colin Powell, UK & European Partnerships Manager, a couple of important questions.
What does OFX offer to e-commerce sellers?
The OFX E-tailor Solution is for you if you’re trading overseas on international marketplaces and wish to find a more cost-effective way of bringing your revenues back home.
Marketplaces and payment providers charge high margins on your transfers, whereas we can give you a local currency account in GBP, EUR, USD, AUD, CAD and HKD thus allowing you to save significantly on transaction fees and margins when bringing your revenue home from international marketplaces.
Sellers can also use OFX to pay international suppliers, settle VAT obligations, receive other foreign incomes and manage their foreign exchange risk.
What is the biggest myth surrounding currency exchange?
Because currency exchange can often be associated with high volatility and large multinationals, it is often seen as being daunting for many SMEs – however, this need not be the case. Competitive exchange rates and a fantastic service is achievable to all businesses, not only those turning over millions a year.
What are your top 5 tips for new and existing sellers for 2018?
- Identify which markets have the greatest need for your product(s). Check available local distribution options including potential click and collect points.
- Research competitors and evaluate how you can differentiate your offering.
- Assess a range of different marketplaces. Is your product best placed on marketplace giants like Amazon, eBay, and Buy.com or more boutique sites?
- Establish projections for cash flow and profits. Your forecasts don’t need to be 100% accurate but having a sense of your expected earnings and cash flow will make it easier to evaluate if things are working out.
- Utilise a foreign currency specialist to make the most of your overseas revenues. Ensure their transfer and setup process is quick, easy and transparent. They should also offer additional services and products to help you reduce the risks associated with currency volatility and offer options that cater to your unique business.
What is coming up for OFX this year?
As a business, we are proud to be in our 20th anniversary year! We started with two humble founders on the North shores of Sydney Australia and have grown into the global service provider we are today.
Tell us something awesome your company has done this year for a client?
Torro Cases is an OFX e-commerce seller client, founded by two ex-policemen Michael Farnsworth and William Johnson. In Michael and William’s own words, here’s how OFX has helped Torro Cases navigate through a very unpredictable year:
“After the EU referendum, the pound weakened significantly against the euro and dollar. If we hadn’t taken any action, our profit margins could have been impacted significantly, and it would have been difficult to keep prices low for our customers. For us, that was a real problem, as we pride ourselves on producing high-quality, affordable accessories.
Our solution was to partner with currency experts OFX. The company developed a bespoke currency strategy to protect our business from currency challenges and helps us make the most of fluctuating exchange rates.
Right now, OFX is helping us to transfer our euro revenues straight into dollars using virtual accounts in the markets we do business in. This means we can pay international suppliers without losing out on the weak pound. If the exchange rate shifts, OFX has made it possible to re-route our payments so we’re still making the most of currency market movements.
We always enjoy competitive rates with OFX, but it’s the partnership and service which make the real difference for us.”
Interested in maximizing your overseas marketplace revenues or discussing your international payments requirements? Contact dedicated partnerships manager email@example.com or simply visit OFX here today.
Is VAT holding you back from expanding internationally? Ask one of our team members how we can help!