What eCommerce Businesses Can do to Drive Efficiency Across The Board
Make Your Financial Ecosystem Less Fragmented
When we think about what efficiency means from a payments perspective, it
really comes down to two factors: cost efficiency and time efficiency. If you're
an eCommerce business that operates globally, or is looking to go global, here's a lot of complexity that contributes to your financial ecosystem.
These complexities could include:
- Operating across multiple eCommerce platforms or payment gateway)
- Owning business bank accounts in different markets with varying tax jurisdictions
- Receiving numerous currencies from customers across the globe
All of these factors structure a really fragmented system and as a result, it’s quite hard to see the state of your finances regarding profitability and cash flow across markets in real time (think: hidden fees and time delays between sending and receiving funds abroad). Not having visibility on these kinds of issues is what may lead to inefficiencies in the first place.
Imagine you're an eCommerce business and you have customers based in the UK and the US, but your bank account is in the UK. When paid by your US customers, you’ll receive funds in USD that will automatically convert to GBP, additionally charging you anything up to 3% above the interbank rate.
