If you are a UK seller you are probably selling in the US or across the EU platforms too, I mean, why wouldn’t you? The US has crazy volume and with a UK seller central account, at no extra cost, you have the chance to make sales in 5 different countries, minimum (and you can expand your offer to be eligible for shipping to every country in the EU, from Poland to Bulgaria).
As it is, Amazon makes it easy to receive your dollar and Euro payments to your home account.
And yet, you’re getting a pretty terrible exchange rate every time you do this.
When just starting out, you can probably ignore this, but at some point, when you begin to scale a bit, you’ll start getting paid more Euros or dollars – and it’s awesome.
Once you do starting scaling up, it’s time to start thinking about getting yourself a US or Euro bank account and use a service to repatriate that money without getting the terrible Amazon rate.
World First and the guys for this
With World First, you’ll be getting a better exchange rate than the one offered by Amazon (or your bank) and when you get a better exchange rate, you put more of your money back into your own pocket.
As an example if you’re a UK-based seller doing $20,000 worth of products on Amazon.com and you get the marketplace to send USD to your home account, you’re paying an extra 3.5% on the conversion.
World First will open a local currency account for you, saving you conversion fees and hey, If you then want to send that money back to your home or business account, you can and you’ll be saving at least a percentage point on the exchange rate – which adds up as you scale up.
How it works
For the longest time I really couldn’t be bothered with the hassle of setting up any extra accounts for my Euro payments as they weren’t so big.
But now, as they are growing all the time, I figured, let’s get a Euro account already!
Fortunately, it’s pretty simple. You fill out the basic info on World First, submit your identity documents and whatnot, then within a day, a rep calls you and talks you through setting up your new Euro (or dollar) bank account with Amazon. They also send you over the documents you need to submit to Amazon when verifying your new currency account in seller central.
From then on, you can have all your Euros (or dollars) sent to the EU or dollar account. From your dashboard, you can then send the money back to your home account and get a much better exchange rate too.
When is it worth doing?
I would say it was worth doing when you start doing more than 1k Euros or dollars in sales.
There's also Payoneer
Payoneer also offers a basic dollar GBP and Euro account, although they don’t give you any supporting documents to help you verify the new account on Amazon.
They also don’t offer you anything special in the way of exchange rates so not a huge incentive there for most Amazon sellers (although I do have a Payoneer too, it doesn't get too much love).
But, Payoneer does issue you a debit card which can come in handy.
Amazon will pay into Payoneer's bank account and Payoneer then puts those funds on your Payoneer debit card.
Payoneer is also a decent solution if you are in a country where Amazon refuses to make payments, i.e. smaller less-developed countries, like, Nicaragua or something
If any readers out there have any wizard tips for saving on exchange rates and whatnot, drop me a line at firstname.lastname@example.org and I’ll update this article.
Oh, and you can find out more about World First right here