With inflation at five percent in Australia, the RBA increasing the cash rate for the first time since 2010 and several more rate hikes predicted, the question many small businesses are asking is, how will it affect me?

Some economists and banks have been predicting an interest rate rise in Australia since 2021, when the effects of the global pandemic and supply chain issues pushed inflation higher. And with the Russia-Ukraine war compounding global trade issues, to which Australia is not immune, inflation has skyrocketed in the first months of this year. At 5.1 percent, it’s the most rapid rise in 20 years. As a result, the Reserve Bank of Australia has just announced the first interest rate hike in ten years. But what exactly is the relationship between interest rates and inflation and what does it mean for small-to-medium businesses?

What is inflation?

In simple terms, inflation refers to the increase in the cost of goods and services over a period of time. It’s generally measured as an overall increase in prices or the cost of living. For example, we’ve seen the cost of petrol rising due to geopolitical tensions and concurrently, weekly grocery costs are going up, along with rental and housing prices. What pushes prices up are a combination of factors, mostly related to the cost of production, such as raw materials and wages, and demand outstripping supply. We’ve seen supply bottlenecks, with shipping times blowing out. Many industries are reporting difficulty recruiting staff, forcing them to offer higher wages. And with the lack of availability of certain products, consumers and businesses are paying more to source them.

How do interest rates affect inflation?

Inflation can be an issue for businesses because it decreases a buyer’s purchasing power; you might only get eight units of an item, when previously you could buy ten with the same amount of money. While some level of inflation is normal and even beneficial, it becomes a concern for governments when it outpaces the ability for consumers to pay for day-to-day goods.

This is why central banks try to hold inflation in check, usually at around two percent. And this is where interest rates come in. Higher interest rates diminishes the amount consumers – and businesses – can borrow, which, the theory goes, then lowers the amount they spend. Less demand for products means less money in the economy and reduces the inflationary pressure on goods. Improved interest rates on savings accounts should also increase the willingness to leave money in your bank account rather than spending it.

How does inflation affect foreign exchange rates?

For a small-to-medium business with cross-border trade requirements, high inflation can greatly impact the cost of supplier payments as it devalues the buyer’s local currency. In the graph below, the lower value of the Australian dollar against the USD in late 2020 meant almost $3,000 difference in the invoice compared to just seven months later. While there are many complex factors contributing to the exchange rate between currency pairs, inflation is something that is closely watched by financial institutions and investors alike.

How do high interest rates affect businesses?

There are several ways that a hike in interest rates can affect businesses.

• Reduced borrowing power: As mentioned previously, a higher interest rate can result in banks being less willing to loan large amounts to businesses.
• Higher loan repayments: Higher interest rates means a higher percentage of the payment is going to pay the interest rather than the loan itself, which extends the life of the loan. Businesses that are financially stretched may move to interest-only payments.
• Lower consumer spending: Higher interest rates reduce disposable income as consumers use their cash to pay for loans. It also incentivises saving due to the interest earned.
• Reduced investment: Businesses may be hesitant to take on new risks and purchases.

How can small-to-medium businesses save money?

When interest rates and repayments rise, the last thing you want to do is spend money you don’t need to. WorldFirst helps SMEs save on their international money transfer costs.  If you see that your preferred currency pair is fluctuating, you can lock in an exchange rate with a forward contract from WorldFirst. This allows you to lock in a rate for up to two years. It means that you’ll always know what rate you’re getting, so you can predict cash flow and be more accurate with your forward planning.

A forward contract is a hedging product, so you should consider your risk appetite – if the market moves against you during your contract, you won’t lose out, but you won’t benefit if a currency moves in your favour.

If this happens, WorldFirst’s spot contracts allow you to take advantage of the current live rate, while charging a maximum margin of 0.60%. Our bank-beating exchange rates mean lower supplier payments and more money in your account when repatriating funds. Some of the reasons over 250k clients have chosen WorldFirst for their international money transfers since 2004 include:

• Same-day transfers on major currencies
• No hidden fees
• Dedicated account management team

Disclaimer:
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

The post Interest rates: How they affect businesses appeared first on WorldFirst AU blog.

If you’re looking for a way to save money on international money transfers, a collections account with WorldFirst may be a good option. Compared to other companies or your local bank, WorldFirst can help you get more for your money when you’re sending earnings from ClickBank back home.

Affiliate marketing has become an important way for brands to reach new customers as digital and social media platforms take off, with influencers and affiliate marketers driving awareness and traffic to the brand or product. It’s not surprising, then, that there are now services and websites to make the process smoother for both the brand and the affiliate marketer.

What is ClickBank?

ClickBank is a marketplace that matches merchants with affiliate marketers who receive commissions for promoting their products. With more than six million clients worldwide, it’s one of the most popular eCommerce channels in the USA and has been around since 1998. There is a wide range of products you can choose to promote – over 4,000 in fact – from categories such as health & beauty, self-help, online business services and arts & crafts.

Vendors will typically provide assets to marketers to help promote their products, such as banners, product descriptions and landing pages. ClickBank affiliates then drive traffic to their own landing pages using SEO, content marketing, email lists, social media and paid media to promote products or services.

In Australia, ClickBank is popular for its simple platform, global reach and reliable payments. In fact, Australia is in the top three countries that ClickBank works with, after the USA and Canada.

How to get paid by ClickBank

As an affiliate partner, you can choose to earn a commission on each sale, or a set amount for an action taken, such as a purchase. Payments to Australian affiliate partners can be made by direct deposit, wire transfer or through WorldFirst.

If you opt for direct deposit or wire transfer, you won’t necessarily be aware of the exchange rate or margin that you’re getting charged, meaning you could be losing a good portion of your earnings to fees and a poor exchange rate. This is where WorldFirst comes in.

Access USD receiving account details and achieve better exchange rates

The WorldFirst account gives your business access to USD receiving account details, so you can collect your commissions in the local currency and repatriate your affiliate payments at bank-beating exchange rates. The International Collections Account can be cheaper than other money transfers such as Payoneer, that might charge up to 2% in margins, compared to WorldFirst’s maximum margin of 0.60%.

This means you’re bringing home more of your hard-earned ClickBank payments in Australian dollars. With the WorldFirst account, you can also choose when to repatriate your funds, so you don’t get caught out by a dropping AUD/USD exchange rate.

How to sign up with WorldFirst and get paid

Here’s how to get started with WorldFirst:

1.  Sign up for a free WorldFirst account.
2. Provide a few on-boarding documents so we can get to know your business.
3. Add your USD account details to your ClickBank account.
4. Collect commission payments direct into your World Account. You can hold funds, make payments directly from your account or convert your funds to AUD for 0.60% or less.

How to add your your WorldFirst USD account details to ClickBank

1. Select ‘Account Settings’ on top right hand corner.
2. Under ‘Payment Information’, select ‘Edit’.
3. Select ‘Direct Deposit’.
4. Under ‘Direct Deposit Information’, fill in the WorldFirst USD receiving account details. These details can be found in the ‘Currency Accounts’ tab of your WorldFirst online account.
   
5. Select ‘Checking’ as the Account Type.
6. Accept Terms & Conditions and save changes

Learn more about the WorldFirst account

These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

The post Receive ClickBank payments by accessing USD account details appeared first on WorldFirst AU blog.

E-commerce trends drive online retail sales. So, what were the most prominent trend predictions for 2021, and did they turn out to be true?
Year on year, trends come and go in every industry — especially in the eCommerce space, where new products can whip up a storm overnight, or where a campaign can go viral and affect marketing plans for businesses across the board.

In 2020, the Covid-19 pandemic changed the way that consumers shop completely, and the after effects are still being felt well over 12 months later. So what were the biggest predicted eCommerce trends of 2021, and did they become a reality? This article will dig into four of the biggest trends predicted for 2021.

• Sustainable trending products and pledges
• AI and AR are on the rise
• More payment options will be available
• Mobile will dominate eCommerce payments

Sustainable trending products and pledges

With rising awareness of global environmental issues, so called ‘green consumerism’ has rapidly become more popular. In recent years, numerous documentaries have driven consumer awareness, heightening the demand for eco-friendly products. Some of the films have highlighted how specific industries harm the environment, and how regulatory bodies do little to govern or control environmentally damaging business activity. 

Green consumerism can be defined in two ways: 

• The quest for products that have been produced in an eco-friendly manner
• Consumer preference for companies that have pledged to do their part for the environment by changing their policies or improving their products

In the run-up to 2021, many industry experts predicted that sustainable products would get increasingly popular — and that does seem to have happened. A survey from Deloitte found that 61% of consumers have demonstrated a commitment to sustainable lifestyles and have cut back on single use plastic this year, with 75% saying they wanted brands to use less packaging. Then, more than a quarter (28%) said that they had stopped purchasing from certain brands due to concerns about their sustainability practices. 

A 2021 report from Accenture found 60% of consumers were making more environmentally friendly and ethical purchases since the pandemic started, and 90% intended to continue doing so long term. This shows that sustainability has become a strong influence on consumer behaviour, and that it’s likely to have an even greater effect as information and environmental data becomes more readily available.

AI and AR are on the rise

The Covid-19 pandemic made in-store shopping very difficult, if not impossible. Many businesses responded by adopting Artificial Intelligence (AI) on their websites — chatbots, for instance — to deal with customer service enquiries. Some organisations also installed recommendation algorithms designed to offer personalised guidance and products to consumers. 

AI analyses information, including consumer shopping history and browsing data, to make personalised product recommendations. It’s become increasingly prevalent online in tandem with the rise of big data — and pundits suspected that 2021 would see even greater adoption of embedded AI.

Augmented reality (AR) also makes the shopping experience more intuitive — but in a slightly different way. Online shoppers cannot view or touch the item they’ll be buying, but AR bridges this gap by blending reality with virtual reality, allowing customers to ‘try’ before they buy. This can be used for many products from eyeglasses (such as Specsavers in Australia) to furniture (IKEA were early adopters).

In 2021, it looks like businesses have widely adopted AI and AR. A full 51% of ecommerce players have implemented automated technologies across their sales, marketing and customer service channels to ensure users have a seamless experience with their brand. Experts believe that this figure will grow as AI and AR become more accessible to small companies as well as large organisations.

More payment options will be available

To gain maximum sales, companies must make the checkout process as seamless as possible. If they offer several ways to pay, businesses can appeal to a variety of customers, some of whom might prefer non-traditional payment methods. Roughly 25% of consumers in a recent UPS survey said they’d abandoned their carts because their preferred payment methods were not available.

It was predicted in 2021 that more ecommerce businesses would accept digital wallets (like Google Pay, Apple Pay, as well as Paypal or Samsung) as well as the typical debit or credit card. Experts thought that Buy Now, Pay Later (BNPL) methods such as Afterpay and Zip would also become more widely used as more convenient and less immediate ways for customers to pay. Analysts also suspected that more companies would begin to accept cryptocurrencies like Bitcoin in 2021. 

So did the expanded payment option trend become a reality in 2021? Overall, yes. An increased number of retail stores and ecommerce sellers added BNPL payment options to their checkout processes in response to consumer demand. In Australia, BNPL adoption by consumers is projected to grow by 24% to 2028.

While there is little data about cryptocurrency adoption so far in 2021, it’s clear that the security provided by the technology (such as blockchain) has many benefits for ecommerce sellers, and that it could grow in years to come. Now that physical stores have opened up again, it looks like brands will continue to adopt additional payment methods to make shopping a simpler experience.

Mobile will dominate eCommerce purchases

Smartphones have become the norm and apps have been developed to allow for easy shopping experiences. As a result, mobile purchases have grown exponentially year on year. In 2018, Statista estimated that by the end of 2021, mobile devices would be responsible for making 73% of total ecommerce sales. 

It looks like this trend may actually become a reality when the data is reported at the end of the year. Mobile searches have become far more common, and social media has driven an increasing proportion of ecommerce sales. In fact, 55% of people who shop on their smartphones make a purchase after seeing a product on social media. 

Similarly, businesses with social media presences have gained 32% more sales than those still working with traditional methods. So, while we don’t yet have the solid data to know if mobile shopping has grown since the beginning of the pandemic, it’s safe to say that mobile-friendly websites and social media purchasing are having a marked impact on customer experience.

Watch our panel of eCommerce experts from DHL, Shopify, MerchantSpring and Alibaba discuss the last 12 months of trends and what to expect in 2022.

Disclaimer:
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

The post Top eCommerce trends 2021: How accurate were predictions? appeared first on WorldFirst AU blog.

WorldFirst is proud to announce that we have been awarded ‘Best Money Transfer Service’ by ProductReview for the second year running. The award is recognition of the commitment we place on customer satisfaction and our dedication to making it easy to do business anywhere, as well as our competitive rates.

Here are just some of the reviews we’ve received in the past 12 months.

About the Awards

The ProductReview Annual Awards are judged independently and impartially by the ProductReview Data & Content Team, who aim to highlight products and services that exceed the expectations of the ProductReview community.

The award winners are judged on their overall rating, the quantity and quality of reviews and the number of approved reviews in the last 12 months.

Using the metrics given from the above criteria, alongside qualitative analysis of review data, the judges choose the highest scoring items within a category to win the award.

About ProductReview

ProductReview.com.au is Australia’s oldest and most comprehensive consumer opinion site, online since May 2003. Reviews and opinions are provided by consumers and cannot be removed or altered, so you can trust that reviews are honest and unbiased.

Doing business internationally or want to start? WorldFirst has helped more than 250,000 customers send more than $140B around the globe since 2004. Global sellers and exporters can access local accounts to collect overseas funds faster and cheaper in local currency. Importers can enjoy market-leading exchange rates that can lower their international supplier costs.

The post WorldFirst wins Best Money Transfer Service Award appeared first on WorldFirst AU blog.

This article was written by Katrina Fox for WorldFirst. She is the author of Vegan Ventures: Start and Grow an Ethical Business.

More consumers are seeking out brands that are doing the right thing by people, animals and the planet. At the same time, COVID-19 and other market conditions have resulted in currency fluctuations and major disruption to supply chains. This leaves you to navigate the precarious situation of managing customer expectations of fast, quality service and strong ethical standards.

Here’s how you can ensure your business stacks up on the ethical front and focusses on corporate social responsibility.

Check your suppliers’ track records on human rights, animal exploitation and sustainability 

In 2013, a building in Bangladesh housing several clothing factories that made garments for high-profile western fashion brands collapsed due to structural faults. More than 1,000 workers, mostly women and children, died, with 2,500 seriously injured.

The Rana Plaza disaster was attributed not only to the factory owner but also retailers for not being diligent enough in monitoring their suppliers’ safety standards, working conditions and wages.

To avoid a scenario like this, it pays to check how ethical your suppliers are.

Here’s what to look out for:

Third-party certifications

Australian vegan, organic, eco-friendly apparel and footwear company Etiko – launched in 2005 – manufactures its products in India, Sri Lanka and Pakistan. From the start, the business was committed to helping tackle inequality and poverty and to empower local communities. It was the first brand in the southern hemisphere to become certified with Fairtrade.

“Etiko wants no part in the exploitation of people, animals or the planet,” says founder Nick Savaidis. “By joining Fairtrade, as a small business, we could rely on an already-established supply chain regularly audited by a third party with a proven history of positive impact. This is the most reliable method we could find to ensure staff and farmers receive a fair wage for their labour and their produce.”

Etiko is also a B-Corp and registered with Social Traders to demonstrate its positive impact on the world.

All three certification schemes help the company to stand out from the crowd. “Etiko helps customers live their values,” says Nick. “We also like to think we’ve had an impact on other fashion brands by demonstrating a different and better way of running a business.”

Shipping and packaging

According to the Australian Packaging Covenant Organisation (APCO), only 18% of all plastic packaging in the country is recovered for future use. The rest goes to landfill.

So, consider the ethical credentials of your packaging supplier to ensure that you’re using the most planet-friendly option available to you. 

Great Wrap in Melbourne, for example, has developed a home compostable pallet wrap and cling wrap that’s made partially from food waste.

Meanwhile Source Green Packaging recently launched the world’s first global B2B marketplace for sourcing forever plastic-free products and materials.

Parcel delivery itself is a contributor to climate change. It’s estimated that the shipping and logistics industry is responsible for around 3% of global greenhouse gas emissions.

Since launching in 2014, Australian courier service Sendle’s mission is helping small businesses thrive with simple, reliable and affordable shipping while being as eco-friendly as possible.

So far the company has offset 21 billion kilometres of carbon – the equivalent to driving a one tonne truck to Mars and back 188 times.

“As a company and a group of purpose-driven individuals, we believe that businesses have to do their part to make a positive impact on the planet,” says Paige Gumbley, senior partnerships marketing manager.

Delivery and customer service

If your supplier says they’ll deliver your packages within a certain time frame, make sure you hold them accountable if they fail to do this. Your customers trust you to keep your promises so you need to ensure your suppliers share these values.

If there are unavoidable delays, your suppliers need to communicate with you regularly so you can keep your customers up-to-date.

Sendle’s price guarantee promises that it will always be cheaper than standard Parcel Post and when sometimes things don’t quite go to plan, a cover policy for lost or damaged parcels is available.

“We have a dedicated team that works around the clock to ensure our prices are kept low for small businesses and parcels are getting delivered safely to their destinations,” says Paige.

International payment providers

Currency fluctuations can have a huge impact on your business, so finding the right international payment provider that shares your commitment to doing good in the world is important.

WorldFirst was created 17 years ago by two British entrepreneurs who wanted to create financial inclusivity by providing affordable international money transfer for all.

In 2019 the company was bought by Ant Group, an affiliate of popular Chinese tech giant Alibaba, which has philanthropy at the core of its business model and values ethical practices highly. This year’s 11.11 festival was centred around sustainability, with GMV no longer the yardstick for achievement but sustainability and inclusivity targets.

The ability to transfer money quickly, securely and affordably is essential for businesses with a global supply chain, especially those dealing with countries that typically lack a strong banking infrastructure.

UK-based firm Bantam Materials International works with coastal communities in developing countries by supporting bottle collectors, collection centres and local recyclers to stop plastics entering the oceans. To date it’s paid for the recycling of over 10 billion bottles.

Bantam sends around USD $100,000 a day to these communities so it requires a secure, robust money transfer provider. “The speed and reliability of these payments is critical, especially with credit interest rates as high as 72% in some communities,” explains UK director Raffi Schieir. “By utilising WorldFirst, we’re able to facilitate a large volume of commerce and trade into developing countries at excellent rates, so that we can reliably provide the cashflow needed to pay the bottle collector communities we work with.”

Factor in market conditions

Running your business ethically is laudable, but you need to consider potential trade-offs and how you’ll manage them. Here are some of the most common issues:

Costs

Going above and beyond in your ethical standards does come at a price. Etiko, for example, pays around 200% more to manufacture its organic canvas sneakers than any other major brand.

“To make anything ethically costs more money than it does to exploit someone,” says Nick. It also costs us more money to use eco-friendly packaging than it does to use plastic. It costs more to use vegan glues than animal-based glues, and our organic cotton is more expensive than regular cotton.”

Yet, the company is still profitable. “Of course, our profit margins are slimmer than those of non-ethical brands, but it’s a sacrifice we’re prepared to make to help our customers access ethical products at a competitive price.”

Sendle has a similar perspective. This year it launched a Pandemic Relief Package with discounts of up to 30%.

“Our business model is all about balancing profit with purpose,” says Paige. “Via our diverse network of courier partners, we’re able to capture the discounts big businesses enjoy and pass them on to small businesses.”

COVID-19

COVID has posed major challenges for many global businesses over the past couple of years. Along with manufacturing and shipping delays, the cost of freight has skyrocketed.

“Explosion in freight costs over the last year has caused havoc with our finances,” admits Nick from Etiko. “The cost of freight for a shipping container has increased by 400%, which is unprecedented.”

Nevertheless, the company has stayed on mission and continues to support its supply chains as much as possible by maintaining contracts, when many other brands cancelled their orders. “We also paid for our products upfront to ensure factories could maintain commitments to their workforce and offered pre-order sales to our customers, so supply chain staff had adequate work during COVID,” says Nick.

Free trade agreements

Free trade agreements can be beneficial in some ways, such as lowering your import costs, but they can also put you at a disadvantage if they change.

Scenarios like Brexit, for example, have led to higher costs for companies in the UK that import raw ingredients, materials or finished products from Europe.

The Trans Pacific Partnership is one to watch for Australian businesses after the US left the pact in 2017, while in September 2021 China applied to join it.

Make sure you stay up to date with any implications these changes may have on your business. Government agencies such as Austrade provide support and education programs on export services, as well as information on export grants. You may also benefit from joining organisations such as the Export Council of Australia, which provides regular updates and latest news on international trade.

Do ethical global business like a local with WorldFirst

WorldFirst has helped more than 250,000 customers send more than $140B around the globe since 2004. Global sellers and exporters can access local accounts in GBP, EUR USD and more to collect overseas funds faster and cheaper in local currency. Importers can enjoy market-leading exchange rates that can lower their international supplier costs.

The post How to do global business ethically appeared first on WorldFirst AU blog.

As consumers get ready to flock to retailers to bag the best bargains of the year on these massive discount days, make sure you have everything in place, from promotions to fast, reliable payment processes to ensure you maximise your sales. Here’s how to get ready for and succeed with Black Friday and Cyber Monday.

What are Black Friday and Cyber Monday?

Black Friday started out in the USA, kicking off on the Friday following Thanksgiving (in 2021 it’s 26 November). It’s where bricks-and-mortar and online retailers offer massive discounts to customers and in recent years has spread to become a global phenomenon.

Cyber Monday is the Monday following Thanksgiving (29 November this year) and was created in 2005 to focus specifically on online sales, before physical stores had much of an online presence. While these are two single days, most retailers, online and offline, run special offers throughout the weekend. In fact in the US, the five days from Thanksgiving to Cyber Monday are known as ‘Cyber Week’.

What industries see the best results?

According to Adobe Analytics, consumers in the US spent $34.4 billion during last year’s Cyber Week, with Cyber Monday alone capturing more than $10 billion.

Computers and other consumer electronics and gadgets (including gaming items and speakers) home and garden products, toys, fashion, health and beauty are the categories where most sales are made.

COVID-19 has changed buying habits, possibly forever, with more consumers moving away from shopping in-store to either curbside pickup (Click-and-Collect in Australia) or buying online.

Amazon reported that Cyber Week 2020 was the largest holiday shopping season in the company’s history. Independent retailers turned over more than $4.8 billion in worldwide sales from Black Friday to Cyber Monday. The ecommerce giant attributed this to more people being keen to support small and medium-sized businesses, which had taken a hit during the pandemic.

How to start planning

With just a few weeks to go before Black Friday and Cyber Monday, it’s time to plan now. Here’s what to consider:

What will you sell and what kinds of discounts will you offer?

Take a look at your existing inventory and decide if it’s sufficient or if it’s worth adding extra items. Use Google Trends data to find out what people are searching for in the categories you sell in.

Figure out what kind of discount you can afford to offer. You can apply this to each individual product or category or offer a storewide or sitewide discount on everything.

You need to balance how much profit you’re prepared to sacrifice in return for larger volumes of sales and the potential number of new customers you may be able to sell to at full price in future.

Bundles

If you’re not keen on offering huge discounts on certain products, you can throw in a bunch of extra items to create a value-packed deal for customers. Pitch these as ‘free’ add-ons and include how much each is worth so consumers know what a bargain they’re getting.

Order bumps

When someone has added one of your products to their cart, this is a perfect time to make them a special offer to add additional items at a heavily discounted price that’s only available right now.

Lifetime deals

If you’re selling software or apps, consider offering a special lifetime deal during the Black Friday and Cyber Monday period. This ‘loss leader’ strategy can generate a host of new customers to whom you may be able to sell future add-ons or upgrades to.

How to succeed as a seller on Amazon and other online marketplaces

After you’ve locked in your Black Friday and Cyber Monday deals, you’ve now got make sales. Your success in this area depends on two key elements:

Promotion

You may have the best products and the best offers but if no one knows about them, you won’t be able to sell them.

So, decide on your marketing strategy. Will you use Google ads or Facebook ads? How can you use organic social media marketing effectively?

Knowing who your customers are is essential so you can target them. For example, research by Finder found that young people aged 18-24 are the most likely demographic to shop the sales, so consider platforms like TikTok or using Instagram reels. Get creative.

Email marketing in the lead up to and during Black Friday and Cyber Monday can be highly successful. Your email list likely consists of either customers who’ve already bought from you, or who’ve signed up for your newsletter. This means they’re ‘warm’ leads and typically have higher rates of conversion to sales.

Affiliate marketing is another strategy that can work well to increase sales, as other people are selling your products to their networks. Just make sure your offer isn’t so heavily discounted that after paying your affiliates their commission, you’re left with very little.

Reliable, fast, multi-currency payment solutions

Potential customers have found you, are excited by your offers and want to give you money. Make it as easy as possible for them to do this. Your online sales will likely come from across the globe, so don’t penalise your international customers with high currency conversion rates or credit card fees.

Using an international payment provider such as WorldFirst allows you to offer customers the ability to pay you from their own bank accounts in their local currency.

As an online seller, you can use your WorldFirst International Collections account to open up to 10 local currency accounts for free and start collecting funds from customers as well as marketplaces and payment gateways including Amazon, eBay, Alibaba, Stripe and others.

Get ready to smash your Black Friday and Cyber Monday sales goals with WorldFirst.

WorldFirst has helped more than 250,000 customers send more than $140B around the globe since 2004. Our International Collections Account:

• Is free to open
• Integrates with Xero
• Allows you to repatriate funds when it suits you
• Has no minimum transaction level

The post Black Friday & Cyber Monday: How to prepare and succeed as a seller appeared first on WorldFirst AU blog.

Trading internationally can help you to grow, but it’s important to choose the right partners and be aware of the financial and legal implications. When looking overseas, it’s not just who you choose as a global supplier that matters, but also how you manage your relationship, what legal obligations you have and how to move money across the globe in a cost-effective manner.

Here are three areas that need particular attention.

Manufacturing and shipping

Some of the advantages of sourcing  from overseas suppliers are lower costs of manufacturing and a larger number of manufacturers and suppliers to choose from. The downsides include potential lower-quality products and longer shipping times, with the latter becoming more of an issue due to Covid-19.

Australian coffee roaster and equipment supplier Dipacci Coffee Company, for example, imports equipment from around the world and has experienced delays in its supply chain from Germany and Italy.

“It’s definitely been challenging with the increases in shipping and waiting,” says sales manager Damien Galea. “We’ve absorbed most of this ourselves. But there are little hiccups like when something got delivered to New Zealand that was the wrong colour.” Wanting the customer to be happy, they absorbed the charges to get it back and send a replacement.

Using a logistics partner

If you’re shipping products from overseas, you have the option of working with a logistics partner that organises everything for you, from taking care of the documentation, customs clearance, tax implications and making sure your products get from A to B.

This option offers ease and efficiency but naturally you’re paying a premium for the service. Average spend on logistics could be between 10-20% of your sales.

Partner with different companies

Another option is to partner with several different companies, which requires time and attention on your part to manage. You may decide to ship most parcels with Aramex, for example, but arrange express postage with FedEx. This means navigating two different platforms and keeping tabs on two sets of invoices. There are also additional specialist services available to help you prepare relevant documents or gain special licences.

Do it yourself

Finally there’s the DIY option where you partner with various freight companies, but take on the work of sorting out all the documentation or licences yourself, as well as picking up your shipments from the port rather than having them delivered directly to you. On paper, this option might seem the most cost-effective, but it’s not necessarily the case when you factor in the cost of your time and the implications of getting things wrong.

There are also ethical considerations in choosing a global supplier. While it may be cheaper to manufacture your products overseas, what is the potential trade-off in terms of fair labour practices and factory conditions? Does the manufacturer or supplier share your values? Compared with onshore manufacturers, offshore companies may be harder to investigate yourself.

Hiring a manufacturing or supply agent, who is local to the area, can often help you source ethical suppliers and they many even visit facilities to check the conditions at your request.

Make sure you investigate, as much as possible, the quality of your goods, as well as customer service. Particularly if you’re running an eCommerce business and using a dropshipping model, where the supplier delivers to your customer and you have little control over the process, a negative experience can damage your brand.

Having solid legal agreements in place is essential to mitigating any issues that may arise during the manufacturing and shipping process, especially noting who is liable if something goes wrong.

Tax implications

When choosing a global supplier for your business, make sure you’re abreast of all relevant tax payments you may be required to make. Some industries, such as alcohol, attract higher taxes and these may vary from country to country. You’ll need to know what the tax implications are for every country that you ship to.

If you’re importing goods into Australia, check if you need to pay GST on these or whether you’re covered by an exemption. It’s also worth investigating other concessions you may be eligible for, such as free trade agreements Australia has with other countries which could lower your importing costs.

Again contracts such as an import/export or distribution agreement are essential so make sure you seek legal and financial advice from qualified and registered practitioners in these areas.

Payments

When you’re importing or exporting goods, volatile currency fluctuations and exchange rates can impact your business. You need easy access to foreign currency and to be able to transfer monies quickly, easily and securely without massive charges.

WorldFirst is an international payment provider based in Australia that offers exporters exchange rates much lower than banks, along with access to locally-based currency accounts in 10 currencies to collect, hold and pay from one platform.

If you’re a small business, many overseas suppliers won’t accept an invoice in Australian dollars, so with a Collections Account, you can invoice and pay suppliers in local currencies.

For eCommerce businesses that sell on marketplaces such as Amazon or Alibaba or use a website payment gateway, adding local currency account details allows you to receive funds quicker. It’s also more attractive to customers who no longer have to worry about the foreign exchange conversions and can clearly see the actual cost to them.

Dave Alexander, Managing Director of toy brand Connetix Tiles, sells in 45 countries around the globe. “We prefer to have all our customers pay us in their currency,” he says, “and WorldFirst enables us to do that.”

Connetix Tiles also uses WorldFirst to pay overseas suppliers and warehouses in their local currency.

Using WorldFirst for his international transfers has changed the way Ben Cawood, owner of Sydney-based Caden Carbon Wheels, does business too.

Previously, customers who bought his bicycle carbon racing wheels internationally and online had to cop an extra 4 percent by paying with their credit cards, while Ben was being charged 5.5 percent on card transactions.

Now, more than 80 percent of his clients pay with the zero-fee bank transfer option in their own country and currency which Ben says has been a “gamechanger” for his business.

“I’ve been able to now focus on providing even better rates to those clients,” he says. “So instead of having to up the prices to absorb those extra fees, they’re getting better value, funds are coming to me quicker and it’s been really amazing for us.”

Do global business like a local with WorldFirst

Find out why over 250,000 clients around the globe have chosen WorldFirst for their international money transfers.

• Same-day transfers on major currencies
• Market-leading exchange rates with no hidden fees
• Dedicated account management team
  

Disclaimer:
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

The post Tips and traps to avoid when choosing a global supplier for your Australian business appeared first on WorldFirst AU blog.

Welcome to our October Currency Update, where WorldFirst’s Currency Specialist, Jack Cincotta, breaks down the key factors that drove the currency markets for the last month and looks ahead to what’s likely to shape markets in October.

The post October 2021 Currency Update appeared first on WorldFirst AU blog.

While the unprecedented growth of online shopping may be attributed to the global pandemic, recent data shows that the trend is here to stay. Australia Post’s latest research reports a 26.9% year-on-year growth in Australia for the 12 months to 31 July 2021, while the number of households purchasing online has increased by five percent from June to July alone this year. With Aussies spending $52.1B online in the 20/21 financial year, it’s safe to say the future of shopping is digital.

Online marketplaces are a big part of eCommerce, providing a customer base and insights you might not otherwise have access to. However, with the myriad options available, it’s hard to know which platform is best for you.

While there’s no best marketplace for everyone, three of the most important considerations for online sellers are cost, competition and customer base. In this article, we break down eight popular online marketplaces in Australia and which ones you might consider when setting up your online store.

Amazon

Amazon’s might comes from its global reach. Its Fulfilment by Amazon (FBA) service, whereby sellers ship products to Amazon’s warehouses around the world to enable placement of inventory closer to customers, is one of its biggest drawcards for sellers. FBA is also linked to Amazon Prime membership, which offers a host of additional benefits around shipping (and streaming) which helps sellers win the buy box.

As a relative latecomer to our shores – 18 years after eBay in 1999 and 11 years after the founding of homegrown platform Kogan – it initially struggled for a foothold. However, its market share is increasing as they invest heavily in advertising, recruitment and onboarding more sellers.

Top pick for: Fulfilment by Amazon service
Monthly web visits: 40.5 million*
Categories: 25+ categories, including electronics, beauty, clothing, garden, pets, home, sporting equipment & automotive
Fulfilment: FBA allows sellers to store their products in Amazon’s warehouses, then distributes those products and provides post-sale support; merchants also have the option of fulfilling orders themselves
Costs: $0.99 ex GST per item sold (individual plan) or $49.95 ex GST per month (business plan). Both plans are also charged a percentage referral fee per transaction, which varies depending on the product category. There are also charges associated with FBA. Learn more here.

eBay

What began as a C2C auction website has since become a global behemoth, with a footprint in 180 countries. It claims 159 million active buyers globally, 19 million active sellers and $2.7 billion in revenue in the last quarter. There are 40,000 Australian small businesses operating on the online marketplace.

Top pick for: Audience reach. In the last 12 months, two out of every three Australian adults made a purchase through the website.
Monthly web visits: 68.6 million
Categories: 9 broad categories including electronics, motors, home & garden, clothing & accessories, toys and more
Fulfilment: Merchant’s responsibility; dropshipping is permitted, provided it complies with eBay guidelines
Costs: From $24.95 ex GST per month for a basic store + fixed order fee and category percentage fee per sale. Learn more here.

Catch.com.au

Catch was acquired by the Wesfarmers Group in 2019, joining the likes of top Australian retailers Target, Kmart, Bunnings and Officeworks. With over 3 million active customers and 30,000 new members every week, it’s one of Australia’s largest shopping platforms. Its target audience of middle-income women means that sellers whose products are aimed at this demographic will do well.

One notable feature of Catch.com.au is its daily deals featuring well-known brands such as Dyson, Asics and Bonds. Furthermore, sellers on Catch are vetted for quality and values, offering buyers the perception of a higher standard than some other marketplaces.

Top pick for: Target audience of middle-income women, a group that offers the highest lifetime value
Monthly web visits: 9.3 million
Categories: 19 including apparel, appliances, electronics, furniture, groceries & liquor, office and more
Fulfilment: Merchant’s responsibility
Costs: $49.99 inc GST per month plus commission per transaction dependent on category

Kogan

Started by a 23-year-old from Melbourne and with a flagship product of televisions, Kogan has evolved into a platform for products and services including credit cards, insurance and travel. However, given its origin, it’s no surprise that it is most popular for its range of own-brand electronics and appliances. Marketplace sellers can list items in 19 categories. With a base of over 2 million active customers, it should be a serious contender when considering online marketplaces.

Top pick for: Email marketing reach with 11 million email subscribers
Monthly web visits: 12.7 million
Categories: 19 including TV & home theatre, audio, furniture and baby & kids
Fulfilment: Merchant’s responsibility
Costs: Commission per transaction dependent on category

Bunnings

Although a newcomer to the online marketplace space, Bunnings is already a household name, as popular for its home improvement and outdoor living products as for its sausage sizzles. In December 2019, it announced the launch of MarketLink, which would offer lifestyle items and whitegoods via third-party sellers. In order to complement its in-store offering, Bunnings qualifies sellers based on their product range; key home and lifestyle categories are highly regarded.

Top pick for: Products in the home or outdoor categories, capitalising on an established brand with a loyal following. Bunnings.com.au is one of the most-visited websites in Australia.
Monthly web visits: 27 million
Categories: 12 categories including homewares, decor, home office, pets and small appliances
Fulfilment: Merchant’s responsibility
Costs: Commission per transaction dependent on category

MyDeal

MyDeal’s focus is on products for the home and garden. As such, popular categories include furniture, baby & kids, home & garden and rugs. In the 20/21 financial year, its gross sales more than doubled to $281 million, spurred partly by the launch of its shopping app.

Top pick for: Low costs. MyDeal aims to keep its fee structure as minimal as possible
Monthly web visits: 4.3 million
Categories: 13 including furniture, home & garden, tools & equipment, appliances
Fulfilment: Seller’s responsibility
Costs: Commission per transaction dependent on category

Fishpond

One of the smaller online marketplaces in terms of web visits, Fishpond is nevertheless worth a mention. It allows sellers to list products themselves (Sell Yours) or open a trade account (Trade Account) where logistics and fulfilment are taken care of by the platform. Merchants simply submit their product data and pricing and ship their products in bulk to Fishpond’s fulfilment centres.

Top pick for: A more traditional model of online selling
Monthly web visits: 670,000
Categories: 20 including books, electronics, beauty and music
Fulfilment: Seller’s responsibility (Sell Yours); fulfilment by Fishpond (Trade Account)
Costs: 10% commission per transaction (Sell Yours)

TradeMe

Technically not an Australian platform, Trade Me dominates the New Zealand market, beating eBay and other marketplaces when it comes to sales. There are more registered members than the population of the country, at slightly over 5 million, and the website claims 1.9 million keyword searches a day and 9 million emails sent daily. While pricey to set up, it’s the platform to be on for exposure to New Zealand consumers. Learn more about fees here.

Top pick for: Access to the New Zealand market
Monthly web visits: 18.3 million
Categories: 28 including antiques & collectibles, music, home & living, clothing & fashion
Fulfilment: Seller’s responsibility
Costs: NZD $399 ex GST set-up fee, $79 ex GST monthly fee plus success fees and listing fees

Need to pay overseas suppliers? WorldFirst has helped more than 250,000 customers send more than $140B around the globe since 2004. Our International Payments Account is free to open and offers same-day payments for major currencies and bank-beating exchange rates with margins of 0.60% or less.

*Monthly visits are based on Similarweb data for March – August 2021

The post Which Australian online marketplace should you sell on? appeared first on WorldFirst AU blog.

Welcome to our September Currency Update, where WorldFirst’s Currency Specialist, Jack Cincotta, breaks down the key factors that drove the currency markets for the last month and looks ahead to what’s likely to shape markets in September.

The post September 2021 Currency Update appeared first on WorldFirst AU blog.