This is part 2 of our interview with Jonny Steel from Payoneer, the cross-border payment solution helping move money around the globe as efficiently as possible. Today we will be covering the topic of converting dollars into pounds.
There is definite uncertainty in the world that makes it really hard to predict currency exchange rates. Various political shifts and changes that happen expectedly and unexpectedly throughout the world do impact exchange rates. Payoneer isn’t in the business of telling you when to exchange your currencies. What they can do is give Amazon sellers all the tools they possibly need in order to manage their currencies. That starts with giving you receiving accounts. You can receive the payments from any of the Amazon marketplaces in the currency it is being sold in. You then have full control over what you want to do with that currency. Choose when you want to withdraw currencies and have certainty around what that will cost. You also have the opportunity to hold those currencies and make payments to suppliers.
It’s as easy as opening up any online account. Setting up an account is free. One of the services Payoneer offers is a global payment service. This is a series of different bank account numbers in different currencies that are unique to you. The thing about these accounts is that it’s much easier to sign up and have a Payoneer account than to open up bank accounts in all those different countries. That can be a nightmare. Once you have your Payoneer account you can link it with your Amazon account so that you can then withdraw it as you wish, or hold it there. If your suppliers have a Payoneer account too, you can transfer funds for free.
What typically happens using your normal British bank account with Amazon is that you will pay a conversion of Euros into Pounds. Then you have to pay a supplier in another currency again. Often Pounds to Dollars, and you get hit with a double conversion. Using Payoneer makes this avoidable because there are no fees at all to transfer funds between Payoneer account holders. Payoneer also has a team in Asia that will help you bridge the gap with your suppliers if they don’t have an account yet. It simplifies things so much and it gives you so much power over your currencies and helps convert dollars into pounds.
There are so many bank fees that sometimes we’re not even aware of, that both sellers and suppliers have to face. Payoneer eliminates that with very clear pricing around low conversion fees including very competitive pricing for higher volume sellers. The smartest way to avoid the whole currency exchange fluctuations issue is to just not go into it in the first place. If you get paid in US dollars from Amazon.com and you pay your Chinese suppliers in US dollars, you want to avoid the pounds into dollars and dollars into pounds fluctuations. This goes one step further and avoids any kind of change whatsoever. It will avoid having to convert dollars into pounds.
The current system with Payoneer is that you need to receive payment before you can make a payment. You’ll have to start somewhere in order to source your merchandise and make some investments of your own. Payoneer kicks in when you get that first disbursement from Amazon or whatever marketplace you’re selling on. As soon as you get funds coming into your Payoneer account you will be able to go from there. Keep watching the space because Payoneer is expanding their services as they go.
One service Payoneer offers is the billing service. The Chinese seller or UK seller can send a payment request to another business somewhere else in the world. The person on the receiving end will get some options for how they can pay it. Including paying with a credit card, e-checks, and bank transfer.
The fees are outlined depending on where you are in the world and the service you are using. In most cases, the primary fee is the conversion fee if there is a conversion. There are also fees for credit cards compared to bank transfers. As much as pricing can be complex when there are a lot of different choices. However, Payoneer really believes in being as transparent as possible in that regard. Again, if you are already receiving money from Amazon in one currency, you are likely able to avoid any kind of dollars to pounds conversion altogether using Payoneer.
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There is always a need for ways to make brands stand out and have a unique identity. Even for things we assume have become completely commoditized. Payoneer uses the attribute value mapping process called Systematic Inventive Thinking. In this exercise, you begin by describing all the attributes of your product. Then you build up a tree where you turn those attributes into values. That is the real value that you are bringing to the customer.
So many Amazon brands slip into describing their product’s attributes, just the features and technical specs of it. They lose track of the value they’re actually bringing to the consumer. When you’re talking about building up your brand, do that attribute mapping exercise and figure out what you really bring to the consumer. If you do that, even in a completely commoditized market, you will find yourself standing out even with a lot of competition. The two questions Amazon sellers can ask themselves are, “How do I get bigger than one particular product line?” “How do I create a brand that creates a relationship over time?”
If you need help with this concept or are looking to take your business to the next level, check out my Zero to Hero London Mastermind program where you can learn from experts, all the ins and outs of selling on Amazon. Don’t hesitate as space is limited.