What does the community think about the Amazon Currency Exchange program? If I am selling in Canada and Europe, should I be using this built-in functionality from Amazon? At a conference, someone recently recommended setting up a local bank account for half the price (~1.5% vs. Amazon’s 3.3% fee). Would appreciate advice for me and other Sellers working through this decision.
We just add the 3% to the price to cover the fee.
I do not use it.
I have instead set up bank accounts in each country and use a foreign exchange service.
What I find is that I get better rates (0.5% above the posted rate) and can choose when is the best time to convert the funds.
That saves me about 4.5% compared with Amazon’s rates (2% for the bank plus Amazon’s 3%).
Additionally I have flexibility to wait for rates to change and can usually benefit by several percentage points by leaving the money in the bank account for a few months.
BlockquoteThat saves me about 4.5% compared with Amazon’s rates (2% for the bank plus Amazon’s 3%).
Why would your bank charge you 2% if Amazon already converted it when they charged you 3%?
Amazon only provides you with the mechanism and they charge for the service. The bank does the exchange and they have a margin in the rate.
Out of curiosity, are you a moderator?
The question was posed to you previously.
I also noticed it. Maybe he used to be a moderator but still works for Amazon and also sells there.
His previous threads were odd and it should be noted, if he is a mod or not. Nothing wrong with being both, but it should be transparent.
@AngelicPretty @Rushdie thank you for asking. I am a Seller who is now an Amazonian. Amazon encourages employees to sell on the platform to understand the selling experience. While this account is for personal use, a Moderator account will be used in the coming weeks. Stay tuned!
The seller forum is programmed like garbage
It’s nice to hear that there will be a moderator who understands the selling experience
OK, thank you. Now we have clarity.
For me Amazon Currency Exchange fee is too high.
I have tried Payoneer, WorldFirst and Transferwise to avoid high currency exchange fee.
Payoneer is expensive but no hidden fees - out of the 3 companies, only Payoneer offers a very good service to pay for your VAT, you just select the country for which you wan to pay your VAT, you write your VAT number and pay, this is a very good service
WorldFirst is not so expensive but they are lying, I have checked carefully on their site all the fees, they always say there is no fee for withdrawing/wiring the funds… BUT this is what they did: I used them to receive euro and wire euro as well, they charged 1% of the amount I wired… just because of that I didn’t want to keep working with them, they need to write this fee
Transferwise is the best, very fast, fee depends on the currency, for me, in my case the way I am using it, it cost me 0.55% and the service is great, they are in UK, good customer service, they don’t hide any fees, you can make a simulation online
Amazon Fee are as bad as if you went to an ATM for cash in a foreign country.
If you have enough sales in a currency you should be able to opt out of the AMZ exchange. Open a foreign currency account (at your local bank). Then transfer money in what ever currency.
You need a separate account for each currency.
Depending on the bank you may be able to save ~2%.
Not so true. You need to open an account in the country using the currency you want to receive.
If you open a bank account denominated in Euro but you open this account in the US, AMZ will pay you in USD and not in EUR
Amazon rule is like this:
It is very complicated to open a bank account overseas for a foreign company. It is possible but very difficult because bank are scared to open an offshore account, they don’t trust people.
The best solution is to use Payoneer / Worldfirst / Transferwise
After trying the 3 companies I only use Transferwise, they are the best in my case. I don’t recommend this company to you, check carefully the fees.
The fees depend on the currency you receive and on where you want to get paid and on which currency.
In my case Transferwise is the best, it might not be the same for you.
Rules are not the same for Amazon Payment in US / UK and Japan.
If you are a company and sell on Amazon US or JP, you can get paid by Amazon to your personnal bank account.
If you are a company and sell on Amazon UK, you cannot get paid by Amazon to your personnal bank account, they can pay you only to your company bank account.
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