Borderless Business – that’s a phrase that has come into reasonably popular use recently. It’s nice and snappy and makes everything sound dead easy if you’re selling beyond your home country.
It’s a phrase used at length by the founder of Rakuten, Hiroshi Mikitani. He explains his thoughts in his book “Marketplace 3.0 Rewriting Borderless Business” which at the risk of offending the owner of Play.com is available on Amazon here.
It’s easy to see why the phrase is becoming so popular with the various marketplace systems making it easy to be found outside your normal geographies. Amazon gives access to 8 Amazons, from the USA to Japan, to third party sellers – so it’s certainly doing its bit for borderless business.
Along the way though, you can’t help but bump into certain issues. For instance – how do you deal with Foreign Exchange Rates. And when setting up a Repricer how do you cope with all the differing currencies that you’ll be faced with. The good news is that the Amazon Repricer within Seller Dynamics reduces the Forex pain for all our retailers who are exporting and keeps them in control.
Setting up currency rates is all very stress free.
To keep things as simple and as stress free as possible we suggest that retailers first of all set up their domestic currency. So folks in the UK choose GBP, Eurozone retailers the Euro and so on.
After that all they need do is pick an exchange rate for each of the currencies that they will selling in. So pop in the GBP:USA exchange rate, or the EURO:AUD rate. We do that so that retailers can adjust and add margin as they see fit – we’d rather give the control over to the retailer as opposed to shifting the Forex rate every 24 hours for instance. We don’t want to interfere in Forex as we know retailers selling across borders will have different costs from one another and different considerations. And they also have to consider Forex costs when transfering funds back – whether those costs are at the Amazon rate or via a third party such as World First, who can work out cheaper for Forex.
Once the exchange rates have been set then selling on Amazon.Com becomes child’s play for UK retailers and selling in Australia for Eurozone retailers is “fair dinkum”. Combine that with the ability to configure different pricing profiles for different Amazon sites and each retailer has complete control on their costs, margins and sales whever they are selling.
Seller Dynamics brings Borderless Business closer.The Amazon Repricer within Seller Dynamics is all about making Borderless Business as close a reality as possibility, despite the occasional road bump that may get in the way. And with it also repricing for all the other popular marketplaces it really does help with cross border sales.
Remember, if you want to find out more about Borderless Business here is a link to Rakuten’s, Hiroshi Mikitani’s book – this time on Play.com. And you might as well have a look at World First Forex Services when you’re at it to see if you can save a bit on Forex costs. Borderless Business with less costs – that’s got to be a good idea.