E-commerce is an undeniable economic juggernaut. It’s where entrepreneurs are making BIG money!
It’s not “kinda like a big deal”.
This business model was “kinda like a big deal” well over a decade ago.
You can offer goods online without the need for a brick-and-mortar store or keeping an expensive physical inventory on hand.
Many internet-savvy entrepreneurs have set up shop with little-to-no up front investment or cash on hand.
Then, they earned consistent profits with very little overheads using just their own web development skills and online salesmanship via smart digital marketing.
You sell products people want at an affordable price, and you never have to leave the comfort of your living room couch.
Easy money, easy life!
So why is it that so many e-commerce sites and businesses struggle to stay in the game or remain profitable?
After all, your site procures orders online and the products are dropshipped or private-label shipped directly from overseas manufacturer to the customer.
The savvy owner pockets the difference between their retail price and the factory cost.
Money should be pouring in like a waterfall, and yet so often those earnings seem to trickle in more than they torrent.
What or who is draining your cash flow?
The answer is simple: it’s your bank.
When you buy direct from manufacturers overseas, they pay their costs through the currency where their business is based.
In order to pay for customers’ orders from your site, their money must be converted into the currency accepted by the manufacturer and wired direct to them through a bank.
Naturally, for providing this service the bank charges a currency exchange fee.
But, do you know how much the bank charges?
Does any dropshipping or private-label shipping seller know?
The fact of the matter is that you know all too well what is happening to a portion of your profits: they are being paid to your bank in the form of currency exchange fees.
Some international banks charge ridiculously high fees on each currency exchange transaction.
How much do they charge, you ask?
Good luck tracking that down in the jungles of fine print.
Obviously, it is not in their best interest for you to know how much a bank charges, because then you start shopping for the best rate.
Further, the bank loses their control of the currency exchange market.
Profiting off of ignorance is a time-honored tradition in banking, and not one that is likely to change in the near future.
However, if you do a little digging and calculation by examining receipts on currency exchange transactions, you will find that the average cost can be around 5 percent or more depending on the bank.
That may not seem like more than the average cost of sales tax in some parts of the the United States.
However, when major transactions sometimes range in the $10,000 or $100,000 region, you cut into profit in a big way, very quickly.
That’s also a big chunk of change that gets taken out before shipping costs, and with fuel and energy costs rising by the week, it can be a real struggle to stay profitable when up against big shipping and big banking.
Why exactly are you paying all this money for currency exchanges?
You pay for the privilege of a computer calculating the exchange rate difference and altering sums of money in your account and the manufacturer’s account.
This transaction takes place almost literally at the speed of light, and it requires little to no actual human interaction.
It’s like being mugged by an ATM machine in the checkout line at a store.
Trying to Cut Down Costs
What about social engineering though?
Couldn’t you just finesse a contact at the bank and negotiate a lower rate for currency exchange fees?
After all, if you are a high-volume transfer business that has hundreds of orders a month, surely your banker will allow some kind of discounting in exchange for regular business.
In a perfect world, that would be a great solution.
In the real world, most banks prevent this kind of mass discounting and volume-based bargaining by paying individual employees who process the exchange transaction a commission on each transfer.
You are not going to find anyone in the finance world that will offer you anything that works against their own self-interest.
Volume discount deals only take money out of the employee’s pocket, so searching for a discount is always a nonstarter.
This is why currency exchange for drop-shipping and private-label shipping remains the number one business expense that is a serious drain on profit margins in a global economy.
How is anyone supposed to make money this way? Why would anyone even make the attempt?
Given that the fat cats in banking and shipping are smiling pleasantly while they take a very generous cut of your money with every order, you’d have to move some ridiculously massive volumes of orders to generate serious money.
It is beyond insane that banks charge these kinds of exorbitant fees to their own customers to exchange currency when there is absolutely no individual labor involved on their part.
None. Nil. Zero.
It is not reasonable or a fair business practice to charge so much money to move digits around in a computer.
The question remains though: Realistically, what can you do?
As with just about every type of business, the solution is what and who you know.
How to Avoid Costly Currency Exchange and Shipping Fees
Shipping costs are easy to cut down on when you bulk ship orders direct from the manufacturer, especially in Asian countries where individual parcel package and deliveries to overseas locations is rapidly becoming one of the most efficient shipping industries in the world.
There are all kinds of shipping companies that package and deliver all over the world at very reasonable rates if you aren’t working with one of the the major shipping organizations.
As for currency exchange, that can be a lot trickier.
It is possible to keep more of your money with each currency exchange, boosting your profits and allowing you to offer more competitive pricing to your customers.
How do you do it?
Curexe was founded by entrepreneurs in e-commerce just like you that were both perplexed and frustrated by how hard it was not only to find out how much they were paying per currency exchange transaction, but also how much the bank was gouging them for with every international payment.
How do you win against an international conglomerate with billions to spend and an iron grip on the currency exchange market?
Simple: You change the rules of the game.
Instead of continuing to try and negotiate better rates, Curexe goes straight to an international bank at the direct exchange level.
However, instead of having to pay the bank a fee to cover an employee’s commission, Curexe charges a flat rate on all transactions regardless of the amount involved.
This allows you to keep more of your hard-earned profits.
There is no more gouging, no more ridiculous charges being tacked on to your factory orders and no more draining profits to some bank that already makes billions of dollars.
Online businesses live and die by new revenue and sustainable profits.
If you are hemorrhaging cash because of international exchange fees, you need to find a better way fast or your business is not going to make it for the long haul.
Make sure to focus your attention on expanding your business and driving sales rather than dividing your time between trying to make it profitable in the face of profit-greedy banks and dealing with the intense competition for customers.
Curexe is the smart move for entrepreneurs who want to focus on what matters most to their business without the constant drain on finances that international currency exchange usually presents.
All you want to do is deliver your products to your customers, not wrangle with banks as they handle your transactions through currency exchanges.
If you are an e-commerce business owner that does business internationally with manufacturers or wholesalers, you have been getting robbed on every single money transfer you made that involved currency exchange.
There is no additional labor, complication or expense for the bank to convert your money.
It is pure greed and profiteering, and if nobody stands up to them and starts taking business elsewhere, nothing is going to change.
Join the fight and switch to Curexe for your cash transfers to your contacts and business partners overseas.
Stop allowing banks to raid your business for cash every time you need to take care of business.
Don’t allow bureaucracy and price gouging on exchanges to limit your business anymore.
Take control of your currency exchange expenses, and get in touch with Curexe today to find out how to dump your bank and keep your own money today.