As an international seller on Amazon, you need to pay close attention to your currency conversion costs. When your Amazon store generates income in multiple currencies, Amazon Currency Converter for Sellers (ACCS) acts as your go-to solution. However, a deeper look into this ACCS reveals the hidden costs that could be undermining your profits.
Key Takeaways from this Post
Unpacking Amazon's Currency Converter for Sellers
Amazon ACCS automatically converts your overseas earnings into your home currency. Its convenience easy setup and automatic deposits, often encourages sellers to use it without a second thought. However, ACCS charges a 1.5% fee of the converted amount. Beyond this cost, the ACCS also leaves you at the mercy of volatile exchange rates, which could further erode your profits. Below is a breakdown of Amazon’s currency conversion fees.
Efficiency and Savings with WorldFirst
For Amazon sellers looking to streamline their currency management, WorldFirst emerges as a superior alternative. Consider the following scenario…
Jenny is a U.K.-based Amazon seller, making sales in Canada, the U.S., and Europe. She makes about $100,000 annually and uses Amazon's ACCS by default. She pays a 1.5% conversion fee on her annual earnings, which comes to $1,500.
The EUR payments that Jenny receives from her Amazon sales are automatically converted into GBP, which incurs a 1.5% ACCS fee before being deposited into her U.K. bank account. Next, she pays her European suppliers by converting GBP back to EUR, and pays between 3-5% in FX fees to her bank.
WorldFirst is offering a preferential applied FX margin of 0.5% for Link My Books customers - significantly lower than Amazon's standard rate of 1.5%. Jenny can also store her earnings in EUR in her WorldFirst account, and use them directly to pay her suppliers in EUR, without needing to make any double conversions. Here’s a breakdown of each scenario.
Benefits of Using WorldFirst
As an approved Amazon payment service provider, WorldFirst significantly reduces the cost and simplifies the process of receiving Amazon payouts in your local currency, converting them at favourable rates to your home currency, and transferring them to your bank account. With a WorldFirst account, you get:
- Competitive margin rates: WorldFirst provides a lower applied FX margin of 0.5% for all major currencies, compared to Amazon's ACCS's rate of 1.5%.
- FX rate lock-in: WorldFirst provides the option to lock in a FX rate, shielding you from any potential future fluctuations. This feature gives you more predictability and control over your finances.
- Currency flexibility: WorldFirst supports 10 local currencies, making it a versatile solution for international sellers. They allow you to keep your foreign earnings from Amazon in their original currencies. This feature is valuable for sellers who pay their suppliers in foreign currencies, as they can avoid additional conversion fees.
- Accounting integrations: WorldFirst integrates effortlessly with popular accounting tools like Xero. This integration ensures automatic reconciliation of your foreign settlement invoices generated by Link My Books, making your financial management process smoother and more efficient.
- Easy direct debits and recurring payments: Businesses can set up direct debits for recurring expenses such as marketplace fees and office costs. In addition, businesses have the ability to make payments directly to their local tax offices. Any tax refunds can also be directly deposited into their WorldFirst account.
- Payments into China: You can make free and instant payments to more than 40,000 verified suppliers in China with WorldFirst accounts, making transactions even more cost-effective.
- Fast account opening: Open an account within a day.
Get Started with WorldFirst
Follow this link to register for a WorldFirst account and unlock preferential pricing and other benefits reserved exclusively for Link My Books customers.
After signing up for a WorldFirst account, you’ll need to update your deposit method in Amazon Seller Central. From then on, you can start receiving payments into your WorldFirst account.
WorldFirst presents a valuable alternative to Amazon's ACCS, offering an efficient way to handle currency conversions and foreign payouts. With lower conversion fees, more control over your foreign earnings, and seamless integration with popular accounting tools, WorldFirst is a powerful tool for global Amazon sellers looking to maximise their profitability and efficiency. Sign-up to get started.
Link My Books Settlement Summaries Reconcile with WorldFirst Bank Feed
If you're using Link My Books and Xero to automate your Amazon accounting then there's even better news. All of your foreign currency settlements will match up automatically with the deposits made into your new WorldFirst local accounts via their bank feed with Xero.
Reconciling your home currency and foreign currency payouts from Amazon now takes just a few clicks, so you can focus on getting back to business.
To get started with WorldFirst and start saving big time on your Amazon currency converter fees, sign up here.
Top tip: when completing the registration please include the link to your Amazon store in the website section as this will accelerate the account setup process