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4 essential tips for online SMEs
WHO WANT TO EXPAND INTERNATIONALLY
SMEs need to think outside of the box if they are going to survive the difficult economic landscape . And one option could be shipping their products internationally . Joshua Shimkin , Head of SME Growth and Marketing at South Africa-based online payment gateway , Peach Payments , offers four tips on what SMEs need to consider if they want to expand their borders .
Joshua Shimkin , Head of SME Growth and Marketing at South
Africa-based online payment gateway , Peach Payments
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Forum believes that as markets become increasingly digital , full SME recovery and success after the pandemic hinges on their ability to expand across borders . However , e-commerce business owners who want to sell to international customers have to keep several factors in mind .
“ Adapting a business and brand to suit international markets , including offering payment options in different currencies , significantly increases the chances of an e-commerce business succeeding ,” said Joshua Shimkin .
As many as 50 % of online consumers won ’ t buy a product or service if they can ' t pay in their own currency . Most reputable payment gateways offer a foreign pricing option , but simply offering pricing in a foreign currency isn ’ t enough to ensure the product will be profitable for the retailer . The intricacies of the international banking system can affect the profitability of products , Shimkin warned .
“ The customer may be charged in dollars , but the South African retailer is paid in rands , at a conversion rate that fluctuates daily and depends on the bank processing the transaction . On top of this fee , the retailer also has to pay the bank ’ s card acquisition fees on international purchases . Delivering a seamless online shopping experience may be both fraught and complicated for retailers , who need to meet high customer expectations ,” he added .
Below , he details four essentials online SMEs should consider when they add payment options in a variety of currencies to their sites .
1
Factor foreign currency conversion fees into your price
A foreign currency conversion fee of 5 % might not seem like much , but SMEs have to account for 5 % on every transaction , which adds up , Shimkin said . Some banks also levy additional forex charges , which may confuse the customer .
Online SMEs have the option of absorbing these fees as part of their business operating
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