In today’s digitalised world, more and more companies decide to internationalise and sell abroad to foreign markets via the internet. However, the main deterrent for boosting sales abroad isn’t just the language barrier, it’s the apprehension of dealing with payments in different currencies from overseas clients.
Boosting the online exposure of your business means that more international consumers find their way to your website. Website translation goes hand in hand with the internationalisation journey as companies seek to boost their sales abroad online. After all, everyone knows that international consumers are more likely to purchase if they can seek information in their own language! The same goes with payment method for international sales. Online consumers from foreign markets are more likely to purchase a product if they are given the option to pay in their own currency.
So how should a business go about international payment before they internationalise?
Offer multiple payment platforms for international consumers
Give your international consumers the option to pay in their own currency. When an international consumer makes a payment from a foreign market, the transaction is converted from their local currency to the currency of your domestic market. List all of the currency options on a drop down tab of your website, just like you would with your website translations.
Know your exchange rates
The amount you receive for an international sale will depend largely on the exchange rate, which changes daily. Make sure you check the exchange rate of every foreign market you operate in and adjust your prices accordingly. You may have to charge more for sales abroad depending on the regulations of that foreign market. If shipping costs are higher in certain market destinations then you should charge your overseas clients a little extra.
Watch out for transfer fees
Banks are known for charging monstrous processing fees when multiple currencies are involved and these are usually hidden costs. To avoid the transfer fees of currency conversion, it’s recommended that you set up a foreign currency balance in your bank account. Alternatively, set up a Paypal account. This is a popular method for businesses that sell abroad to multiple foreign markets.
Lastly, make sure you have enough cashflow
During the internationalisation process, the high initial costs of launching your product into new foreign markets ultimately means that your cashflow is limited. Businesses that have just begun international expansion cannot rely on the money from international sales to keep the business afloat. Businesses need to ensure they have a healthy cashflow to cover business expenses in overseas markets, especially at the beginning of internationalisation. International sales payments can take around 2 weeks to be processed and converted into the right currency before they reach your bank account.
Internationalisation is by no means an easy process. However, once you’ve leveraged your online exposure, website translations and international payment methods, your business has everything it needs to ensure that international sales flourish in any overseas market. Unlock growth at a global level through the power of the Internet!