When starting or running an online store, one of the key decisions you have to make is what currencies to accept. There are a few reasons why you might want to allow multiple currencies in your store. This article will explore some of those reasons and explain how multi-currency can benefit your e-commerce business.
Increase Your Conversion Rate
When you allow customers to pay in their currency, they’re more likely to complete a purchase. Local payment options can increase your conversion rate by 26%. This is because customers are more comfortable and familiar with their currency. They know how much things cost in their currency and are less likely to be put off by unexpected costs (like currency conversion fees) when they can pay in their currency.
Furthermore, by offering multiple currencies, you can make your prices appear lower to customers. This is because when customers see prices in their currency, they perceive the prices to be lower than if they saw the same prices in a foreign currency.
For example, let’s say you’re selling a product for $100. If you’re only accepting US dollars, then that’s the price your customers will see. But, if you’re also accepting Euros, then the price of your product will appear as €85.19.
While the actual price is the same in both cases, the price in Euros will appear lower to customers, which could encourage them to purchase. Of course, you’ll need to be careful with this. If you set your prices too low, you could lose money on each sale.
Improve Customer Satisfaction
When you offer multiple currencies, you can also improve customer satisfaction. Customers will appreciate paying in their currency and not having to incur hidden costs (like currency conversion fees).
What’s more, by offering multiple currencies, you can show your customers that you’re willing to go the extra mile to accommodate them. This can help build trust and improve customer satisfaction. In the end, happy customers are more likely to become repeat customers. And they’re also more likely to leave positive reviews and recommend your store to their friends and family.
Besides customer satisfaction, you can also increase your revenue with multiple currencies. When you accept different currencies, you can use them in forex trading to earn profits. Forex markets operate 24/7, meaning that you can invest multiple currencies received from the clients as and when you want. However, it is best to learn forex trading before doing so. You can take forex training lectures to familiarize yourself with the markets’ operations. During the lectures, you can learn about the forex structure, different strategies for training, and how to read the charts. These will help you make the right trading decisions and earn profit.
Attract New Customers
Another benefit of offering multiple currencies is that you can attract new customers. This is because, by accepting foreign currencies, you can tap into new markets and reach more potential customers.
For example, let’s say you’re a US-based store that only accepts US dollars. If someone in Europe wants to buy from your store, they’ll need to convert their Euros into US dollars. However, this can be a hassle and may deter potential customers from making a purchase.
On the other hand, if you accept Euros and US dollars, you can make it easy for European customers to buy from your store. This could lead to an increase in sales and help you expand your business. What’s more, by offering multiple currencies, you can make your store appear more global and trustworthy to potential customers.
Reduce Fraud and Chargebacks
Another benefit of offering multiple currencies is that it can help reduce fraud and chargebacks. This is because criminals are less likely to target stores that offer multiple currencies.
This is because it’s more difficult to commit fraud when dealing with multiple currencies. Criminals would need to have a good understanding of the different currencies and how they work to commit fraud.
Furthermore, by offering multiple currencies, you can show your customers that you’re a legitimate business. This can help reduce the number of chargebacks you receive.
Chargebacks are when a customer disputes a charge on their credit card. And, if you receive too many chargebacks, your merchant account could be at risk of being shut down.
There are many benefits to allowing customers to pay in their currency. Doing so can make your store accessible to a global audience, increase your conversion rate, and make it easier for customers to shop in your store. In addition, you can avoid foreign exchange fees by using a payment processor that supports multiple currencies.