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I used to Pay Thousands Each Year on Currency but Now I don’t Anymore

Finance

Don't Fall into the Amazon Seller 'Money Exchange' Death Trap

Source: Pixabay

I'd like to share a personal story with you if I may. I've been an Amazon seller for years. Most of my customers are based overseas and that's where my bread and butter is – foreign markets. To be honest, I assume that Amazon was the perfect go-to solution for most every component of my online e-commerce operations. I listed my products with them and promoted them accordingly. When buyers were interested in making a purchase, I simply use the Amazon currency converter for sellers to determine my fees.

Now, if you're based in the UK and reselling to the European Union, currency conversion is necessary. The same is true for any other country in the world. There are all sorts of fees to consider with an online business, including things like storage costs for FBA, value-added tax, and things like currency conversion rates. It's really important to understand how much you're being charged vis-a-vis currency conversion rates. I'll digress for a moment with PayPal as an example. PayPal is extraordinarily expensive for sellers – much more expensive than online money transfer services like TransferWise, Skrill, and CurrenciesDirect for example.

You really want to get a good grip on the exchange rate that you're being charged – those little percentages add up to big amounts at the end of the month when you're determining your profits. You will notice them even more if you operate your business on low margins. Unfortunately, this is a fact of life for many e-commerce operators given the intense competition and the glut of sellers in the market. Everybody wants to have an online business nowadays; whether it's selling goods or services – people see the benefits of 'passive' income streams through e-commerce activity. The reality is decidedly different, and I'm going to break it down in terms of the extraordinary costs that are brought to bear on your business if you use Amazon's services.

So, what costs am I talking about here? Ideally, you would want to have a mid-market foreign exchange rate – nothing too high to contend with. If the prevailing GBP/USD rate is 1.30, you certainly don't want to be quoted a rate of 1.26 if your business is based in the UK. That $0.04 difference means that you are getting less USD for every GBP-priced product or service that you are selling online. If we're talking about high-volume, or expensive products and services, that differential can make or break you. All cost considerations need to be borne in mind when evaluating things like base fees on international transactions, hidden fees and international transactions, commissions, and the exchange rate that is actually charged by Amazon. I started digging around, after realising that mind of my profits were far less than I had hoped.

How to reduce your fees when selling on Amazon?

Granted you can't get away from fees entirely, but you can certainly cut down on them to prevent the total erosion of profitability in your e-commerce operations. Other money transfer services like WorldFirst, Azimo, Payoneer and PingPong have rates between 1% – 2% on average, and this got me thinking – how competitive are Amazon's rates? My research led me in many different directions. Fellow Amazon sellers advised me that the best way to avoid exchange rate fees was simply to open bank accounts in the markets that you were doing business with to avoid all the shenanigans associated with exchange-rate fees. That's not always an option with a business that sells in multiple countries. The currency converter at Amazon typically levies charges of 3% – 4% of the total amount of the sale. Unfortunately, banks also want a cut of the money and that could be as much as 2%. It's important to verify the effective exchange rate before the transaction is completed.

The recurring theme in this whole saga is to try and establish a bank account in the country where you are selling your products and services. If this is possible, then you can use your own foreign exchange provider to reduce that figure of 5% – 6% of total charges down to just 2%. To get There, you must pick a different online money transfer service where the total fees and commissions will be between 1% – 2%. There's no getting away from international money transfer services taking account of the funds that are being transferred. However, you can certainly reduce the amount that you are haemorrhaging every month to an affordable figure by shopping around.

Amazon's currency converter for sellers utilises the prevailing exchange rate on the day your transfer to your bank account is made. If you think that the published rates at Bloomberg, CNN, BBC, or Al Jazeera is the rate that you're getting – forget about – that is the interbank rate. However, Amazon's rate is different. You can click on view exchange rates from the payment summary section when you are making transfers to your account. Even if you have a GBP-denominated account in a foreign country, Amazon usually transfers funds in the currency of the receiving countries bank a.k.a. the local currency.

Managing Amazon transfers effectively

So how does Amazon transfer payments to your bank account? Well, Amazon uses ACH (Automated Clearing House) and/or electronic funds transfers to send money into your bank account. It can take up to 5 business days for this process to complete. Amazon Payments Inc is responsible for transactions payments when buyers agreed to make payment before goods have been shipped or before services have been completed. Amazon Services LLC is responsible for payment processing when buyers agreed to make payment after goods have been shipped, or after services have been rendered. So, in closing, I'm going to provide you with two powerful tools you can use to save money as a seller on Amazon:

  • As a seller, you can streamline your operations by using different payments providers to facilitate more efficient business operations. There are many options in this regard, including World First, Global Reach, and Currencies Direct
  • If you're selling between the UK and Europe, you will need to take that into consideration. Rather than withdrawing your earnings, converting back to EUR and then sending a wire transfer for VAT (expect fees of up to 5%) use a reputable money transfer service which has free services like back payments to EU authorities. I'm not going promote one or another – simply do some research and pick the one that is best for you. If you use the services of international money transfer companies which have local bank accounts in the markets that you are selling in, an international currency allocation, you have an account based in an overseas territory that allows to receive local currency. With this method, you can sell to customers anywhere in the world and get paid in local currency in your receiving account. Then your money can stay in that account while you monitor the exchange rates and you can transfer the funds back to your main account when exchange rates are favourable. Simply add your local bank account information to your Amazon account and Amazon will transfer payment to your local account in that currency.

Hopefully, this sheds a little light on the topic and you will be able to use this information to cut down on the expenses and boost your bottom line accordingly.

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Health

How This CEO Is Using Your Period To Prevent Chronic Diseases

With so many groundbreaking medical advances being revealed to the world every single day, you would imagine there would be some advancement on the plethora of many female-prevalent diseases (think female cancers, Alzheimer's, depression, heart conditions etc.) that women are fighting every single day.


For Anna Villarreal and her team, there frankly wasn't enough being done. In turn, she developed a method that diagnoses these diseases earlier than traditional methods, using a pretty untraditional method in itself: through your menstrual blood.

Getting from point A to point B wasn't so easy though. Villarreal was battling a disease herself and through that experience. “I wondered if there was a way to test menstrual blood for female specific diseases," she says. "Perhaps my situation could have been prevented or at least better managed. This led me to begin researching menstrual blood as a diagnostic source. For reasons the scientific and medical community do not fully understand, certain diseases impact women differently than men. The research shows that clinical trials have a disproportionate focus on male research subjects despite clear evidence that many diseases impact more women than men."

There's also no denying that gap in women's healthcare in clinical research involving female subjects - which is exactly what inspired Villarreal to launch her company, LifeStory Health. She says that, “with my personal experience everything was brought full circle."

“There is a challenge and a need in the medical community for more sex-specific research. I believe the omission of females as research subjects is putting women's health at risk and we need to fuel a conversation that will improve women's healthcare.,"

-Anna Villarreal

Her brand new biotech company is committed to changing the women's healthcare market through technology, innovation and vocalization and through extensive research and testing. She is working to develop the first ever, non-invasive, menstrual blood diagnostic and has partnered with a top Boston-area University on research and has won awards from The International Society for Pharmaceutical Engineering and Northeastern University's RISE.

How does it work exactly? Proteins are discovered in menstrual blood that can quickly and easily detect, manage and track diseases in women, resulting in diseases that can be earlier detected, treated and even prevented in the first place. The menstrual blood is easy to collect and since it's a relatively unexplored diagnostic it's honestly a really revolutionary concept, too.

So far, the reactions of this innovative research has been nothing but excitement. “The reactions have been incredibly positive." she shares with SWAAY. “Currently, menstrual blood is discarded as bio waste, but it could carry the potential for new breakthroughs in diagnosis. When I educate women on the lack of female subjects used in research and clinical trials, they are surprised and very excited at the prospect that LifeStory Health may provide a solution and the key to early detection."

To give a doctor's input, and a little bit more of an explanation as to why this really works, Dr. Pat Salber, MD, and Founder of The Doctor Weighs In comments: “researchers have been studying stem cells derived from menstrual blood for more than a decade. Stem cells are cells that have the capability of differentiating into different types of tissues. There are two major types of stem cells, embryonic and adult. Adult stem cells have a more limited differentiation potential, but avoid the ethical issues that have surrounded research with embryonic stem cells. Stem cells from menstrual blood are adult stem cells."

These stem cells are so important when it comes to new findings. “Stem cells serve as the backbone of research in the field of regenerative medicine – the focus which is to grow tissues, such as skin, to repair burn and other types of serious skin wounds.

A certain type of stem cell, known as mesenchymal stem cells (MenSCs) derived from menstrual blood has been found to both grow well in the lab and have the capability to differentiate in various cell types, including skin. In addition to being used to grow tissues, their properties can be studied that will elucidate many different aspects of cell function," Dr. Salber explains.

To show the outpour of support for her efforts and this major girl power research, Villarreal remarks, “women are volunteering their samples happily report the arrival of their periods by giving samples to our lab announcing “de-identified sample number XXX arrived today!" It's a far cry from the stereotype of when “it's that time of the month."

How are these collections being done? “Although it might sound odd to collect menstrual blood, plastic cups have been developed to use in the collection process. This is similar to menstrual products, called menstrual cups, that have been on the market for many years," Dr. Salber says.

Equally shocking and innovative, this might be something that becomes more common practice in the future. And according to Dr. Salber, women may be able to not only use the menstrual blood for early detection, but be able to store the stem cells from it to help treat future diseases. “Companies are working to commercialize the use of menstrual blood stem cells. One company, for example, is offering a patented service to store menstrual blood stem cells for use in tissue generation if the need arises."