The world is getting smaller as more people shop online, and it's far more likely that customers from around the world are visiting your site with the intention to buy.
If you want to maximize international sales, it's in your interest as an online vendor of one-time download products or recurring subscription services to provide a shopper-friendly, localized user experience on your e-commerce order pages. Customers are more likely to complete a sale if they are presented with their preferred currency, payment method, and language, so in order to close more sales, it's important to purchase an e-commerce solution that can offer the complete package.
Before you make a decision about your e-commerce solution, it's important that you confirm that it can support your business should it go global. A solid e-commerce platform will offer multi-currency support that provides many benefits to vendors and end-customers. How can this option benefit your business in the long run? Read on to learn how multi-currency options can improve your bottom line.
What's Multi-Currency Support?
Multi-currency support means that shoppers can pay for your products or services in whatever currency they wish. Typically, shoppers in other nations are forced to pay entirely in USD or Euros instead of the currency of their country of residence. However, some e-commerce solutions offer an array of payment options; FastSpring, for example, enables shoppers to pay in a variety of currencies, including USD, Australian Dollar, Canadian Dollar, Swiss Franc, Danish Krone, Euro, Great British Pound, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Swedish Krona, and Singapore Dollar.
How many people from other countries are buying your products? Well, according to Forrester Research, 25% of European and 30% of US online consumers buy goods cross-border.* Presumably, when it comes to software, the percentage is even higher than the overall e-commerce average cited by Forrester.
What are other advantages to using multi-currency?
Avoid Extra Charges, Ensure Customer Loyalty
Using multi-currency helps customer avoid being charged extra fees for currency conversion on their credit card statements. When customers see these extra charges, they are far less likely to want to purchase from your site again in the future. Instead, it's more probable that they'll request a refund or issue a chargeback due to dissatisfaction with the higher price and general annoyance with the added fees.
Pricing Display Consistency
Pricing display consistency is important in winning a customer's trust. Multi-currency ensures that customers see your product's pricing displayed in a simple, rounded number to which they're accustomed. Say, for example, 20.00 Euros instead of 19.53 Euros.
Pay Via Bank Transfer
Multi-currency allows customers to pay via bank transfer, which is not available when using non-local currencies. It's a convenient way to pay, and customers will appreciate the ability to pay in this manner.
Easy Setup in SpringBoard UI
Some businesses are concerned that offering multi-currency pricing might complicate their setup. That's not the case with FastSpring. When you set multi-currency pricing for products in FastSpring’s SpringBoard platform, each currency can be added to the product’s pricing options. Setting up foreign currency pricing is easy using FastSpring’s real-time currency calculator.
Reduce Cart Abandonment, Refunds, Chargebacks
Multi-currency reduces shopping cart abandonment, and can minimize refund and chargeback rates. For any currencies you do not specify localized pricing for, the prices will be displayed to customers using real-time foreign exchange rates. Customers will appreciate yoru straightforward approach to pricing as well as the lack of effort required to see the price in the currency of their preferred format.
Currency exchange rates, including those for cross-sells, can also be calculated with +5% or +10% conversions, to account for market fluctuations. This aids you in controlling sales in foreign countries and can be a great help in calculating product discounts, with a safe margin built in.
Are you ready to take the leap and adopt an e-commerce platform that will help you take your business global? Click the link below to check out FastSpring's rating on the Implementation Index for E-Commerce Platforms. We think you'll like what you see.
* Forester Research, "Understanding Online Payment Preferences in International Markets," [White Paper] March, 2010.