A smooth cash flow is a crucial part of running a healthy business, big or small. Even if you’re a veteran business owner, you may still be encountering difficulties getting paid and paying others. Online sellers have a particularly complex situation, managing their business supply chain across multiple borders and currencies; with suppliers on one end of the globe and buyers often on the other, this juggling act can quickly get pricey and problematic if not handled expertly.
Luckily for sellers, new technologies and advanced international payments systems have evolved to help global businesses grow. While words like “fast”, “low-cost” and “easy” may not be words that one typically associates with moving money around between economies, it definitely should be; gone are the days of paying sky-high fees and waiting days on end for payments to be accepted.
Amazon has implemented many helpful tools to help sellers achieve success and get paid, but that’s just one part of the equation. How can sellers tackle the other challenges that come with running an international e-selling business?
Challenge #1: Paying Suppliers, Logistics Companies and Service Providers in Asia
It’s no secret that China and Hong Kong are the world’s largest exporters of consumer products, and as a seller, this is definitely not news to you. More than likely, you’re sourcing at least some of your products from this region (if not all). Once you’ve found a solid cost-effective manufacturer and a reliable logistics company, you’ve only won half the battle: how are you going to pay them?
You’re looking at transferring payments to Asia regularly, often with at least one currency conversion along the road. Clumsy international wire transfers can take up to 15 business days, depending on the country, and cost you up to $45 per transfer. Can you really afford to wait that long and pay that much?
You run an international business – choose a service that specializes in international payments. Payoneer offers sellers and suppliers a complete end-to-end solution that cuts costs significantly. Payoneer’s Make a Payment service lets account holders transfer funds to each other for free and offers low currency conversion and withdrawal fees on top of that. The best part? The vast majority of transfers take hours, not days. No more nail-biting wait-times while your money travels across the planet.
Challenge #2: Getting Paid by Amazon and Other International Marketplaces
If you sell on Amazon, you know that you need a local USD receiving bank account located in the US. Are you interested in growing your business and selling on Amazon UK or Amazon.de? You’ll need local currency bank accounts there, too. This is not as easy as it may sound; to open a bank account in the UK, for example, you’ll need to register your business with the UK authorities and have a physical UK business address. Growth can come with growing pains for international sellers.
No need to buy your plane ticket to London just yet. You can get access to a local GBP receiving account in the UK by signing up for Payoneer. But that’s not all: Payoneer’s Global Payment Service provides sellers with local receiving accounts in the US, EU, Japan and China as well, without the hassle of opening actual bank accounts in those countries. Use these receiving accounts to get paid by anyone worldwide, as easily as you would receive a domestic transfer. Whether you’re getting payouts from Amazon or other marketplaces, the effort is diminished and you’re free to grow.
Challenge #3: Paying Taxes in Multiple Countries
Selling in the US? You probably know all about how complicated US sales tax laws are. If you’re selling on Amazon UK or EU, you may need to pay the local governments VAT for your sales. How can you stay on top of multiple taxation laws domestically and abroad?
An important part of being a good businessman or woman is knowing when to reach out for assistance. Payoneer strives to help sellers grow and succeed on an international level. With a global ecosystem of vendors that includes taxation experts and accounting companies, it’s easy to find someone to help you navigate international payments laws. For a limited time, Payoneer is currently offering to help sellers settle their VAT debts to government collection accounts the UK and EU for free via Make a Payment service.
This post was written by our partners at Payoneer.