1. Optimise Pricing

To optimise pricing, you must understand the competition, demand, and customer behaviour. Use various data analysis tools to track market trends, customer behaviour, and pricing strategies of competitors. By optimising pricing, you can improve profit margins without negatively impacting sales.

2. Modernise your local payments

Suppose your expansion plans include entering new markets; you may have to hire local employees or deal with local vendors. In that case, you would need to convert your local currency into foreign currency each time you pay them. Meaning, your business is exposed to currency fluctuations and additional conversion costs, which could have been used better for other initiatives. 

Here’s how you can simplify payments. Ebury’s cross-border payments solution allows you to pay and receive like a local seamlessly. This helps you worry less about conversion costs, avoid dealing with multiple banks and save the hassle of having a physical presence in each location. 

3. Maximise your cash management

Tracking and forecasting cash flows can be tedious, and we get it. Here’s how to create a process to track cash inflows and prioritise cash management strategies. 

• Ensure access to a flexible lending facility you can utilise when you need it the most.
• Analyse your cash conversion cycle and identify areas for improvement. 
• Streamline your foreign currency accounts to see everything together under one roof. 

Ebury’s multi-currency accounts help you hold, view, withdraw, or convert balances at competitive rates as you want and when you want. With this, Ebury offers flexible and hassle-free credit lines to access funds when needed to improve your working capital efficiency. This enables you to seize newer opportunities and accelerate your global growth journey.

4. Manage your currency exposure

When you source in one currency, say RMB, and sell in multiple currencies, including USD and EUR, fluctuating exchange rates can negatively impact profitability. Designing risk management strategies using hedging products, such as forward contracts, can minimise your currency risk exposure. 

At Ebury, we understand your business to design a bespoke hedging strategy that suits your goals, needs, budget and risk tolerance. We also work with you to implement and monitor the strategy to ensure you achieve your risk management objectives. 

It is important to align your risk management strategy with your business objectives and goals to preserve your profit margins and improve the visibility of your overseas cash flows. You may design it yourself or hire an expert (bank or fintech), treasury adviser or consultant to design a holistic and bespoke hedging strategy that is right for your business.

5. Consider shipping costs, storage and duties

Considering who will pay for the shipping and duties on your international shipment is worthwhile. If you pay them, it can make your products more expensive. On the other hand, the shopper may decide not to buy the product on seeing the additional costs. If you want shoppers to pay the duties, shipping or any other additional costs, provide clear and transparent information in the buying journey to build trust.

Storage costs can add up significantly if you factor in packaging and staff. Compare storage costs between cross-border shipping (holding inventory in your country) vs holding stocks in different countries before zeroing down on your inventory management strategy. 

6. Keep yourself up to date with local tax regulations

Tax laws vary widely between countries, and failing to comply with local regulations can result in costly penalties. Stay informed about local tax rules and work with a qualified tax advisor to ensure good compliance.

7. Minimise your returns

Cart abandonment is a significant problem for online businesses. Some strategies to reduce cart abandonment include simplifying the checkout process and sending abandoned cart recovery emails.

To reduce the chances of returns, provide extensive product information and clear images on your e-commerce site to manage shoppers’ expectations. 

Start maximising your bottom line

If you are in charge of your online store, you can maximise your profitability by implementing the above-discussed strategies that can help increase revenue and reduce costs. This will help you build a sustainable business model and experience long-term success.

Want to take your online business to new places and succeed in the year ahead?

To help you stand out in this competitive landscape, we have created an ultimate guide covering the latest trends to keep an eye on, easy tips to succeed and common mistakes to avoid.

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The information provided herein is general in nature and should not be construed as financial or investment advice. The information provided here is not legally binding. The information, data or views expressed here is for the exclusive use of the recipient and is subject to changes without any notice. You may ask the support team or your dedicated relationship manager to provide additional information regarding Ebury products.