The keys to integrating a multi-currency system into your eCommerce business

21/11/2019

Angela de la Vieja

A multi-currency pricing strategy is an indispensable element for online sales. It will allow you to sell online beyond the borders of your home country, without needing to overcome the psychological barriers that a buyer usually has when faced with fees or taxes. When internationalising an eCommerce business or selling directly to other markets, having a price strategy that can be scaled to different types of local currencies will allow you to achieve a better sales ratio. Above all, it will allow you to maintain your margins in each market. How can you accomplish this? And what do you need to keep in mind when doing so?

Where to start with multi-currency systems in eCommerce business

Well, let’s start with the first steps. The fundamental thing, when we talk about using multiple currencies in your eCommerce store, is the technology. How are you going to display this?

Create a relationship between the domain of your website domain a preferred currency.
Enable the user to manually select their currency.

These two options will allow you to show your prices in a given currency based on where the user is visiting from, or at least based on the store in which they are looking at your product. With the manual selection option, you’ll also allow any potential client to check how the price will change in relation to a change in currency.

One additional alternative is to identify where the web traffic is coming from. While this should directly match the version of the website you offer (whether .uk, .es, .com, or any other domain), you can segment this by as many regions as you’d like to show your prices in different currencies based on your interests. For example, in Latin America, it’s quite common to show prices in US dollars instead of the local currency, even though the option to consult the price in bolivars, dollars, soles, reals, or pesos can also be selected later.

In any case, you must always include a cost breakdown so that a potential client can understand – in their own currency – the components that make up the final price such as shipping costs, fees, packaging, etc.

This is the point when the entire structure of agreements you have with payment gateways becomes important. When it’s time to choose between distinct payment options and to select the best intermediary, you should try to establish the conditions for the rates that apply to each transaction. This will allow you to directly include them in your price or to at least mention them in the cost breakdown.

Adapt yourself to the currency but also to the customs

Starting to sell in a new market also implies identifying and defining your sales habits, product presentations, and interactions with the users. Combining these three variables will allow you to always display the prices to each market in the most appropriate way. It will also allow you to be more natural, less invasive and, to that end, to aim for a higher sales ratio.

For example, it’s important to know if any psychological pricing strategies exist that would adapt better to any potential clients. You should check in advance what your different competitors are doing and complete as much A/B testing as you need to find the formula that will work best for your eCommerce business.

Earn followers with your payment facilities

Using a multi-currency strategy in eCommerce is not only a way for an eCommerce business to adapt itself to the local market. It’s also a tool for that business to gain users in its target networks.

Most users show a greater willingness to make purchases when they are clearly informed about the final price. This will help avoid any possible rejection of purchases and any repetitions when, at the end of the transaction, the bank imposes a cost or fee on the currency exchange. In the end, you have to think in the same terms as a physical business. When paying in cash, we are subject to the exchange rate that has been applied to us. When paying with a card, on the other hand, we have the option of paying in the local currency, with the help of our bank, or in our currency, while applying a fee for the operation.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.