Small business owners face a variety of challenges when it comes to money going in and out. Even once you’ve figured out the basics and gotten the ball rolling, you’re still likely to run into some difficulties with getting paid and paying others.
Most online sellers are managing business across international borders and multiple currencies, and this juggling act can get complicated (and expensive) if not handled expertly. Convenience, low costs and transparency may not be the first words that come to mind when thinking about global incoming and outgoing payments; but they should be. Managing your business’s cashflow doesn’t have to be a nightmare.
Paying Your International Suppliers and Vendors
China is the world’s largest exporter of goods, and if you’re a seller, you likely source most of your products from that region. Language barriers, time-zone differences and shipping times are just some of the challenges sellers encounter when sourcing products from Asia. One of the biggest—and perhaps most crucial—challenges of working with vendors in another country, is payments. Issues surrounding international wire transfers and currency conversions can slow a smooth-running business to a halt. How can you avoid pitfalls when sending money to your suppliers and service providers?
Choose a service that specializes in cross-border, cross-currency payments. Payoneer offers sellers and suppliers a wholesome, end-to-end solution that can cut transfer and currency fees significantly. Payoneer’s Make a Payment service enables Payoneer users to transfer funds to each other for free and offers low currency conversion and withdrawal fees on top of that.
Service Providers May be on the Other Side of the Planet…So What?
Are you looking for a designer to work on your logo? A web developer to build your eStore? Perhaps a product repricing or localization service? Oftentimes, you’re likely to find that the best service providers aren’t nearby…in fact, they may be on a different continent. International wire transfers and currency conversion concerns can be even more significant when you’re dealing with small amounts or one-off gigs. Do you really want to pay up to $40 for a wire transfer of a $250 design gig? Yikes. If your service provider is one of the 3 million Payoneer users worldwide, you can transfer funds to them for free via Make a Payment.
Manage Your Incoming Marketplace Payments
If you are looking to get started selling on marketplaces like Amazon, you’re going to need a local USD receiving bank account in the US. Selling on Amazon and looking to branch out to Amazon UK or Amazon.de? You’ll need local currency bank accounts there, too. Having a bank account in the UK, for example, requires that you register your business there and establish a physical UK business address. If you’re running a small business out of the US, you might not be ready to set up shop in the UK just yet.
Payoneer’s Global Payment Service provides users with local currency receiving accounts in the UK, US, EU, Japan and China, saving them the hassle of opening actual bank accounts in those countries. Sellers can use these receiving account to collect payments from a variety of online marketplaces (including Amazon’s platforms in these countries), with no effort at all.
Do you have multiple stores on Amazon marketplaces? No problem. Payoneer will help you combine all your store info in one place, giving you access to receiving accounts for each store.
Stay on Top of International Taxation
Selling on international marketplaces means complying with international taxation laws. For example, you might need to pay US sales tax or VAT in the UK or EU for the sales you make online. It can sound daunting, especially when branching out to new markets, but it doesn’t need to be scary. Payoneer’s international ecosystem of vendors includes taxation experts and accounting companies. Payoneer helps sellers pay VAT debts to government collection accounts the UK and EU for free via Make a Payment service.