--- title: Managing the Currency Costs of Selling Globally description: As you grow your business and expand into international marketplaces, you'll need to make smart decisions when selling globally. This article will teach you how to manage currency costs, exchange rate fluctuations, and international selling. image: https://blog.jazva.com/hubfs/Exchange%20Rate%20Fluctuations.jpg --- [![Jazva](https://blog.jazva.com/hubfs/Jazva_November2017/Images/logo-249x56.png "Jazva")](https://www.jazva.com/) - [PRODUCT](https://www.jazva.com/product-tour) - [PRODUCT TOUR](https://www.jazva.com/product-tour) - [Products & Listings](https://www.jazva.com/product-tour) - [Inventory & Warehousing](https://www.jazva.com/product-tour/inventory-warehousing) - [Order Processing](https://www.jazva.com/product-tour/order-processing) - [Shipping](https://www.jazva.com/product-tour/shipping) - [INTEGRATIONS](https://www.jazva.com/integrations) - [Marketplaces](https://www.jazva.com/integrations/marketplaces) - [Amazon](https://www.jazva.com/integrations/amazon) - [Jet](https://www.jazva.com/integrations/jet) - [eBay](https://www.jazva.com/integrations/ebay) - [Walmart](https://www.jazva.com/integrations/walmart) - 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[![SUBSCRIBE TO NEWSLETTER ](https://no-cache.hubspot.com/cta/default/2659049/ff58488e-9830-43a6-8087-6f65ae72f57e.png)](https://cta-redirect.hubspot.com/cta/redirect/2659049/ff58488e-9830-43a6-8087-6f65ae72f57e) # Managing the Currency Costs of Selling Globally March 8, 2018 By: [Gabriel Grisham](https://blog.jazva.com/author/gabriel-grisham) - [Tweet](https://twitter.com/share) ![Exchange Rate Fluctuations.jpg](https://blog.jazva.com/hs-fs/hubfs/Exchange%20Rate%20Fluctuations.jpg?width=640&height=334&name=Exchange%20Rate%20Fluctuations.jpg) While it is easier than ever to [sell products globally](https://www.ofx.com/en-us/online-sellers/managing-your-online-business/jazva-global-selling-common-problems/?pid=5567), the move to go international isn’t without its complications. Figuring out logistics, taxes, translation, not to mention targeting and marketing to a new customer base all takes a lot of time and effort. But once you have figured it all out and are selling in the U.K., Europe, maybe even Asia, you want to make sure you are making as much as possible, getting the highest ROI (return on investment) for your hard work. However, there is one element of global sales that can have a tremendous impact on your bottom line that has very little (if anything) to do with your business -- **currency**. When you sell in the U.K., you are earning British pounds (GBP), but if you are based in the US then you need to convert your GBP to USD. ## **Understanding Exchange Rate Fluctuations** Let’s say you made 10,000 GBP worth of sales in the month of January, how much is that in USD? It all depends on when you convert the GBP to USD. If you converted it on February 1st then your 10,000 pounds were worth $14,199 USD. If you waited until February 28th, you would get $13,727. That’s over $400 in additional profit (or loss) due solely to exchange rate fluctuations. Now you may be saying that $400 isn’t that much, but what happens when we expand our timeframe? Let’s say you had revenues of 10,000 GBP in February of last year. That only got you $12,377, that’s almost $1,500 less than this year for the exact same amount of sales. ![Exchange Rate Fluctuations](https://blog.jazva.com/hs-fs/hubfs/Exchange_Rate.png?width=803&name=Exchange_Rate.png "Exchange Rate Fluctuations")  Over the past year, the GBP to USD exchange rate has had a low of 1.2046 and a high of 1.425. that’s over a 15% swing in value that directly affects your bottom line and can take you from a profitable month to losing money in the blink of an eye. So what can you do about it? ## **How to Reduce Exchange Rate Risks** International sellers have two options on how to deal with exchange rate issues. ### **Option 1. Do nothing – aka the ostrich approach** Some sellers think that exchange rates are too complicated, too hard to manage, or they simply don’t have the time. So they choose to stick their head in the sand, pretend currency fluctuations don’t exist, and hope for the best. ![Ostrich Approach](https://blog.jazva.com/hs-fs/hubfs/head-in-sand.jpg?width=304&name=head-in-sand.jpg "Ostrich Approach") Disclaimer: this approach is not recommended. ### **Option 2. Actively Monitor Exchange Rates and Decide Accordingly** While no one knows exactly how currencies are going to move relative to one another, there are a few things you can do to minimize the effect exchange rates have on your business when selling globally: - **Stay on top of currency fluctuations.** - **Set a forward contract to lock in your exchange rate.** - **Avoid converting currencies if you don’t have to**. Bottom line, selling globally is great and offers a huge opportunity for brands large and small to increase revenues. However, there is added complexity that you need to manage for in order to make sure you are earning the most profit possible. [![To find out more, contact OFX](https://no-cache.hubspot.com/cta/default/2659049/27de3189-7314-4738-b779-b5d860ab2b70.png)](https://cta-redirect.hubspot.com/cta/redirect/2659049/27de3189-7314-4738-b779-b5d860ab2b70)   [![OFX Global Money Transfers](https://blog.jazva.com/hs-fs/hubfs/Copy_of_Don_t_Let_Currency_Kill_Your_Margins_docx_-_Google_Docs.png?width=164&name=Copy_of_Don_t_Let_Currency_Kill_Your_Margins_docx_-_Google_Docs.png "OFX Global Money Transfers")](https://www.ofx.com/en-us/online-sellers/?pid=5567)**About OFX:** OFX is one of the world’s largest international payments businesses globally. Having transferred over $100 Billion since its inception, OFX provides international payment services to online sellers, individuals, and business customers. First launched in 1998 and publicly listed on the Australian Securities Exchange, OFX is headquartered in Australia with offices in the US, UK, Canada, Hong Kong and New Zealand.  - [About](https://blog.jazva.com/managing-currency-costs-exchange-rates#tabs-1) - [Latest Posts](https://blog.jazva.com/managing-currency-costs-exchange-rates#tabs-2) ![Gabriel Grisham](https://blog.jazva.com/hubfs/OFX.png) Seuraa minua ### [Gabriel Grisham](https://blog.jazva.com/author/gabriel-grisham) Gabriel Grisham has spent over a decade working with companies on cross-border commerce. A native of California, he lived in China for almost a decade before returning full time to the SF Bay Area. Gabriel has a B.A. from Duke University and an MBA from Thunderbird School of Global Management. You can reach him at Gabriel.Grisham@ofx.com ![Gabriel Grisham](https://blog.jazva.com/hubfs/OFX.png) Seuraa minua #### Latest posts by Gabriel Grisham ([see all](https://blog.jazva.com/author/gabriel-grisham)) - [Managing the Currency Costs of Selling Globally](https://blog.jazva.com/managing-currency-costs-exchange-rates) - 08.03.2018 [![Inventory eBook](https://no-cache.hubspot.com/cta/default/2659049/b2991cda-bb4b-4dcd-9574-6b056920cd5e.png)](https://cta-redirect.hubspot.com/cta/redirect/2659049/b2991cda-bb4b-4dcd-9574-6b056920cd5e) ### Read Our Best Topics - [Multi-Channel Growth Guides (14)](https://blog.jazva.com/topic/multi-channel-growth-guides) - [Amazon Growth Hacking (10)](https://blog.jazva.com/topic/amazon-growth-hacking) - [Walmart Growth Hacking (4)](https://blog.jazva.com/topic/walmart-growth-hacking) - ["BigCommerce Shopping cart" (1)](https://blog.jazva.com/topic/bigcommerce-shopping-cart) - ["amazon marketplace" (1)](https://blog.jazva.com/topic/amazon-marketplace) - ["bulk listings" (1)](https://blog.jazva.com/topic/bulk-listings) - ["eBay marketplace" (1)](https://blog.jazva.com/topic/ebay-marketplace) - ["magenta shopping cart" (1)](https://blog.jazva.com/topic/magenta-shopping-cart) - ["multi-store and warehouse management (1)](https://blog.jazva.com/topic/multi-store-and-warehouse-management) - ["product management" (1)](https://blog.jazva.com/topic/product-management) - ["shopify shopping cart" (1)](https://blog.jazva.com/topic/shopify-shopping-cart) - ["volition shopping cart" (1)](https://blog.jazva.com/topic/volition-shopping-cart) - ["woo commerce shopping cart" (1)](https://blog.jazva.com/topic/woo-commerce-shopping-cart) - [inventory management (1)](https://blog.jazva.com/topic/inventory-management) see all ### Subscribe to Our Newsletter ### Recent Posts #### Ready to Optimize Your Business and Accelerate Sales?[Free Consultation](https://lead.jazva.com/free-consultation) [Product](https://www.jazva.com/product-tour) - [Products & Listings](https://www.jazva.com/product-tour/products-listings) - [Inventory & Warehousing](https://www.jazva.com/product-tour/inventory-warehousing) - [Order Processing](https://www.jazva.com/product-tour/order-processing) - [Shipping](https://www.jazva.com/product-tour/shipping) [About Us](https://www.jazva.com/about-us) - [Company](https://www.jazva.com/about-us) - [Partners](https://www.jazva.com/partners) - [News & Events](https://www.jazva.com/news-events) - [Terms of Use](https://www.jazva.com/terms-of-use) - [Privacy Policy](https://www.jazva.com/privacy-policy) [Integrations](https://www.jazva.com/integrations) - [Amazon](https://www.jazva.com/integrations/amazon) - [eBay](https://www.jazva.com/integrations/ebay) - [Jet](https://www.jazva.com/integrations/jet) - [Shopify](https://www.jazva.com/integrations/shopify) - [Magento](https://www.jazva.com/integrations/magento) - [BigCommerce](https://www.jazva.com/integrations/bigcommerce) - [WooCommerce](https://www.jazva.com/integrations/woocommerce) - [Volusion](https://www.jazva.com/integrations/volusion) - [Walmart](https://www.jazva.com/integrations/walmart) Resources - [Blog](https://www.jazva.com/blog) - [eBooks](https://www.jazva.com/ebooks) - [Help Center](https://help.jazva.com/hc/en-us) - Get a Quote Connect with Us - - - - [![Capterra](https://blog.jazva.com/hubfs/Jazva_November2017/Images/0dc572432e6ee7a7f17b481d4689bd56.png "Capterra")](https://www.capterra.com/reviews/150790/Jazva?utm_source=vendor&utm_medium=badge&utm_campaign=capterra_reviews_badge) [![Web Retailer](http://www.webretailer.com/badge/v/2/id/2528)](http://www.webretailer.com/profiles/jazva.asp) [![Jazva Reviews](https://blog.jazva.com/hs-fs/hubfs/Jazva_Reviews.png?width=239&name=Jazva_Reviews.png "Jazva Reviews")](https://reviews.financesonline.com/p/jazva) 790 E Colorado Blvd. Suite #250, Pasadena, CA 91101, toll free: (888) 500-2520 [info@jazva.com](mailto:info@jazva.com) #### **Ready to Scale Your Business?** Discover the power of intelligent automation. 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