The world is getting smaller. What was once a wild fantasy is now a reality: multi-currency payment.
Buyers could theoretically buy something from an American seller and have it shipped to them in Europe.
For e-commerce sellers, this means that the number of potential customers increases. You now have access to the whole world, not just people in your immediate vicinity.
For shoppers, this expands the range of stores they can shop from, giving them more freedom and flexibility to choose exactly who they spend their money with.
But navigating the world of multi-currency e-commerce is tough.
You want to meet all of your customers’ needs, and part of that includes not forcing your customers to figure out prices on their own.
In this post, we’ll walk you through how to spin multi-currency stores and some best practices to get it right.
The advantage of accepting multi-currency payments
If you don’t offer multiple currency options but still want to sell internationally, you run into a problem.
You may think it’s a great idea to offer your products worldwide, but without a multi-currency strategy, your customers are at risk of being billed.
Once their credit card company processes the payment, the customer will have to pay for conversion fees. As you can imagine, this will make them less likely to shop with you in the future.
So instead, use a multi-currency strategy to ensure your pricing is as transparent as possible and there are no nasty surprises.
Multi-currency options are displayed
You need to think about how you plan to display your prices. This is the best way to earn and keep the trust of your customers and potential customers.
If your customer sees the price in dollars but wants to buy in £, how much effort do you think it will take to process the conversions?
One of the best ways to do this is to use rounded numbers. Instead of writing £35.46, just use £35.00.
Here you have two options.
- Show all currencies on one product listing page.
- Have duplicate sites for each region or country.
There is benefit to both options, and the one you decide on will largely depend on your own resources and budget.
Let’s discuss each of the options in more detail.
In the example above, you can see each item listed with a dollar price. However, the box on the top right indicates to the customer that they can change it to the prices of their home countries.
You can also build a completely different store based on the customer’s location.
This works by picking the IP location of the current visitor and automatically changing the website and prices to match them.
While this is an effectively streamlined way of doing things, it can actually become expensive and time-consuming because you have to manage multiple sites.
You can choose to select some of the most popular currencies (euro, dollar, pound). However, the best way to make decisions about your currency decisions is to look at your analytics and see which countries your customers are actually coming from.
If it’s going to cost you more money to price in euros and you don’t have European customers, it’s probably not the best use of your resources. If you have at least 5% of customers from a specific country, it’s worth supporting their currency.
Setting your prices gives you two options.
Manual price adjustment
Manual pricing is effective because it gives you full control over your product pricing. This strategy works best for stores with a smaller amount of products, simply because it’s much easier to track how your products are performing.
If you are a much larger store, you may want to consider automatic pricing.
However, manual pricing means you have to think and factor in exchange rates and change your prices accordingly.
This can be time-consuming, so you may want to ask if your time is better spent elsewhere.
However, if you have a small product line where your product prices are relatively stable in price, manual conversion may be a suitable option.
automatic price adjustment
Automatic pricing, for example, is great for those with a lot of products. In this scenario, your prices (in all currencies) are automatically converted throughout the day and adjusted according to the most current exchange rates.
These apps tend to be mostly user-friendly and plug and play. The primary benefit of automatic pricing is accuracy. You never have to worry about inaccurate conversions, and what’s more, you save time.
Track competitors’ multi-currency prices
Prisync covers e-commerce sites worldwide. When you sell internationally, setting profitable prices can be a big challenge. Why not monitor all sites from all markets? Since pricing can be a big challenge when considering multiple countries, currencies, and competitors, doing it manually is a very time-consuming task. You can add product URLs for foreign countries to your Prisync dashboard. As we want you to have competitive and profitable prices, covering your competitors worldwide will help you on this topic.
Add sites from different country domains with automation and sell your products by setting prices according to their pricing strategy. It is important to keep track of your competitors when there is an opportunity to increase your target audience and increase your sales with higher revenues.
Using a multi-currency payment system
With the rise of technology systems, you can now use software to help you navigate the world of multi-currency pricing.
For example, think of Amazon, they have an internal payment system that allows them to sell to different countries.
Because of this, their global reach is huge and they have become a household power.
You want to make sure that even if you sell in multiple currencies, you get paid in your native currency.
This will help you on the bottom line when it comes to taxes and conversions.
Investing in a payment solution provider will help convert your prices into the currency of the person viewing your site at the time.
So neither you nor your client need to worry or stress about conversions and added fees. It also takes into account currency changes that occur frequently.
This process is known as hedging. Where the payment provider deals with any foreign exchange risk.
Using this strategy will save you time and future headaches.
If you want to expand your business and sell to new markets, multi-currency support is the best way forward.
Not only will it give you a wider customer base, but you’ll also be able to increase your overall revenue.
All over the world, in Asia, China and even India, the world of e-commerce is growing rapidly. Not only do shipping costs go down, but people are happy to pay for good products even if they don’t come from their home country.
The best thing you can do if you want to get started is to think about how you are going to price your products for your local and international market, then use specific pricing systems to help you price your products in a way that is fair to everyone. for: buyer.
What methods have you used to sell internationally? Leave a comment below.
Frequently asked questions
Yes, only if you use Shopify Payments.
Yes! Shopify is available in the following languages:
Yes, Shopify allows you to sell internationally.
e-commerce marketing strategy