Amazon EU Sellers - Getting Paid & Foreign Currencies

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Foreign currencies

For most US sellers, expanding to Amazon EU will represent a first time their business has to deal with multiple foreign currencies.

Your Amazon UK sales will be in Pounds (£), while Amazon Germany, France, Italy and Spain sales are made in Euros (€).

Exchange fees

Most US sellers link their Amazon EU seller account to a US bank account. When it’s time for your payments, Amazon will automatically convert the Pounds and Euros you receive into US Dollars and then transfer this amount to your US bank account.

In the process of converting your funds, Amazon typically charges sellers around 3% to 4% in exchange fees.

For larger sellers and those operating under tight profit margins, this can be a significant cost and hurt your bottom line.

Optimize your payments from Amazon Europe

I advise Amazon EU sellers to set up an account with a payment solutions provider. This will allow you to lower your exchange fees and keep more of your profits.

It’s also a more convenient and cheaper option than opening up a new bank account in Europe.

What payment solutions provider do we recommend?

We recommend Amazon EU sellers set up an account with Payoneer. As a featured payment solution in Amazon EU Seller Central, it’s easy to set this up.

You’ll be able to reduce your exchange fees immediately - Payoneer’s exchange fees are up to 2%, depending on volumes (the higher the volume, the lower the fee).

In addition, you’ll have easy access and many ways to use the funds in your payoneer account:

Send your UK / EU VAT payments directly to the relevant tax authorities
Get a prepaid mastercard that can be used to pay expenses online and withdraw funds at an ATM
Pay your suppliers that have a Payoneer account (which many of them do)

Bottom line

International payments and foreign currencies will be a new thing for many of you - while it can be easy to push off, setting it up right at the start will save you a lot of money in the long term.

Payoneer is our recommended payment solutions provider, as their platform is user friendly, their fees are competitive and they offer a wide range of ways to use and access your funds.

We have agreed a special offer with Payoneer for our readers - sign up with Payoneer today and you’ll get a $100 reward!

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