Posting Canadian Currency on Ebay.ca

grade
Community Member
So ebay send a message to all Canadian sellers on eBay. Ca that due to the metrics they show that it is better for Canadian sellers to post in Canadian currency as opposed to US currency. They claimed in the message that Canadian sellers will do 15% better in some areas 10% better in some areas 5% better in some areas but yet it has to do with a lot of other factors they think or they want Canadian sellers to post in Canadian currency. I find this somewhat amuseing considering that as a Canadian seller myself, when I post in US currency I am getting 30% on the exchange rate so how is it benefiting me to post in Canadian dollars? it is not.
Message 1 of 16
latest reply
15 REPLIES 15

Posting Canadian Currency on Ebay.ca


@grade wrote:
I find this somewhat amuseing considering that as a Canadian seller myself, when I post in US currency I am getting 30% on the exchange rate so how is it benefiting me to post in Canadian dollars? it is not.

 

If you mean you sell in US$ so you can then turn around and buy in US$ then that argument makes sense, you don't lose the 2-3% exchange rate difference.

 

 

But if you sell and then plan to spend the money in Canada, then you will lose the conversion exchange cost from US to Canadian.

 

 

I'm assuming you don't mean comparing listings that have the same numbers ($74CA vs $74US) instead of comparing proper listings that use the same value ($100CA vs $74US).

 

 

 

Message 2 of 16
latest reply

Posting Canadian Currency on Ebay.ca

The currency conversion cost is roughly four points. You are still ahead after the cost spending your money in Canada. As to your point about $74 vs $74 Canadian, my answer is it's all psychology...... I would much rather post 199 us then say 260 Canadian. Of course I am talking from the Canadian perspective if you are American it would be less naturally .
Message 3 of 16
latest reply

Posting Canadian Currency on Ebay.ca

Problems that I see with this are many but the two most glaring ones are.

 

First knowing how eBay is always behind the times I suspect this survey or whatever, was done long before our dollar tanked. More likely when they were on par.

 

Most of my buyers are Americans who typically don't know there is anything else out there but themselves. If I list an item in Canadian currency they are just going to see $140.00 CDN rather than the $100.00 US and shop elsewhere. I get enough emails from customers wondering why the shipping is so high because they never read the listing.

 

And thirdly, whenever eBay says it for my benefit I get very paranoid cause it's usually exactly the opposite.Smiley Very Happy 

Message 4 of 16
latest reply

Posting Canadian Currency on Ebay.ca

, my answer is it's all psychology...... I would much rather post 199 us then say 260 Canadian. Of course I am talking from the Canadian perspective if you are American it would be less naturally .

That logic may work in some instances but in general most Canadian shoppers (I would assume) either convert the US$ in their heads or set up  their ebay to view in Canadian dollars.

 

I would always ask the seller to provide me the total in CDN$ if I'm not sure,then may decide not to buy ,lots of time wasted for a simple currency conversion. the clearer the price, the better.

Message 5 of 16
latest reply

Posting Canadian Currency on Ebay.ca

If you shop on ebay.ca and the items are in US funds, you will see both currencies anyways. The Canadian price will be brackets below the US price.

Message 6 of 16
latest reply

Posting Canadian Currency on Ebay.ca

"Analysis of sales between January 1, 2015 and June 30, 2015"

 

Got this from their message on Aug 27, 2015.

 

The current exchange is $1.3269 CDN for $1 US.

Message 7 of 16
latest reply

Posting Canadian Currency on Ebay.ca

I am also a Canadian seller on ebay.ca    If your sales are primarly to US customers, then I guess it is OK to post in US$ so they don't have to pay any exchange conversions.

I don't post in US dollars because it adds approx another 5% to the cost of the item to be given to Paypal.   Margins are thin enough with each year's postal rate increases.

 

The buyer pays about 2.5% in exchange & the seller pays another 2.5% exchange when they have the Paypal funds transferred b

ack into their Canadian accounts.

 

Of course if you have a US bank in USA then you wouldn't need to pay this 2.5% conversion.   I think there may be some special banks in Canada that you can do this with (but only a very very few can do this).

I tried opening a TD Canada Trust US$ account to do this transfer but Paypal doesn't allow this.

 

I personally don't like buying in US$ funds on ebay.ca as I have to bring the calculator out to find out how much to bid.

Why add another 2.5% to the cost of an item unnecessarily.

There may be a few people who are "fooled" by the seemingly lower price US$ listings on the auction site, even with the higher Canadian $ numbers posted alongside.    I hope I'm not one of the few that am not fooled (but slightly annoyed) by the US$ listings.

 

On another note:

Everyone knows that $9.95 is essentially $10 & I don't really think too many people are subconsciously fooled.  However, we are all taught by the Retail Outlets that this is the way to go so we all do it.

 

 

Message 8 of 16
latest reply

Posting Canadian Currency on Ebay.ca


@komics4sale wrote:

Why add another 2.5% to the cost of an item unnecessarily.

 


Unnecessarily?  Tell me one bank, currency exchange office, credit union, or other financial institution that charges clients such as you or myself market rates for exchanging currency.

Message 9 of 16
latest reply

Posting Canadian Currency on Ebay.ca

For us mere mortals, Visa charges currency conversion fees for purchases or refunds made in currencies other than CAD. I imagine most of the majors do it too.

Message 10 of 16
latest reply

Posting Canadian Currency on Ebay.ca

I have no problem with Paypal or any other institution charging to do exchange rate conversions.

They have to make money to eat also.

 

What my point was is that if I sell an item to you for $1.35 canadian with free shipping = $1.35 canadian, you would have to pay me $1.35 canadian from your paypal account.

I would end up with $1.35 canadian.

 

If I sell the same item to you for $1us with free shipping = $1us, you would have to pay me $1.35 + $0.025 exchange conversion = $1.375 canadian.    The same item would cost you 2.5 cents more.   

In this second situation, I would also have to pay paypal another 2.5 cents leaving me with $1.335 canadian (2.5 cents less)

 

The example was only using a very low priced item of $1us.

If you do $100 or $1000 a month on ebay, the 2.5 cents rapidly becomes $2.50 or $25.

 

Therefore I find these 2 extra costs unnecessary.......unless of course there are other positive factors which make it worthwhile to list in US$.

   eg.  You are selling mainly to US customers

    or   you have access to a bank that accepts Paypal redemptions in US funds

Message 11 of 16
latest reply

Posting Canadian Currency on Ebay.ca

I'm not following your point.

Would you prefer that PayPal just add the conversion fee to the exchange rate the way VISA and other converters of currency do so that it's not an "extra" fee?

Message 12 of 16
latest reply

Posting Canadian Currency on Ebay.ca

I think we're not discussing along the same line of thought.

 

(1)  I have no problems with Paypal's 2.5% exchange rate conversion fee.

      In fact they probably charge less than many other establishments & venues that do the same thing.

 

(2)  My only point is that if a CANADIAN seller sells mainly to CANADIAN buyers....If the listing is in US$, the conversion is an unnecessary fee that must be paid by both the buyer & seller. (ie both parties pay an extra 2.5% conversion).

 

    -an exception to the above is if a buyer thinks they are earning more by listing in US$, then they should continue to do so to their own benefit.....(however, the Canadian buyer will be dinged the extra 2.5% to the total cost that they must pay)

 

I'll try to put my example in another way:

 

Case 1:  I have an item that you can buy from me for $100us  (approx $135 canadian)

Case 2:  I have the same item that you can buy from me for $135 canadian.

 

Assuming you are Canadian & have mostly Canadian dollars in your Paypal account (which is how most payments are made on ebay).

When it comes to paying, you will have to pay an extra $2.50 in Case 2.

This extra amount doesn't show up until you actually pay via Paypal.

 

As a buyer, I would always opt to buy in Case 2

The extra $2.50 I save can be used to buy other items in the future....or treat myself to a medium Tim Horton's Ice Cap.

 

This is my only point which seems to be lost is my use of the word "unnecessary".

....In my opinion, the extra $2.50 is an "unnecessary" conversion expense that does not have to enter into the pricing.

Message 13 of 16
latest reply

Posting Canadian Currency on Ebay.ca

I've only had a US dollar balance in my PayPal account as my wife an I can probably count on one hand the number of Canadian dollar listings from which we've purchased, so I may be a little off on this, buuuuttt...

Surely the way to avoid this conversion fee would be to purchase using one's Canadian dollar "balance" and purchase from a seller who is listing in Canadian dollars?

A seller who is, by your description, selling mostly to Canadian buyers would likely also list in Canadian dollars rather than US dollars.

Message 14 of 16
latest reply

Posting Canadian Currency on Ebay.ca

"A seller who is selling mostly to Canadian buyers would likely also list in Canadian dollars rather than US dollars."

 

That would be logical but, unfortunately, does not reflect today's reality on eBay.

 

You still find - in all categories - items listed by Canadian sellers with appeal to Canadian buyers and listed in US$ with the associated shipping charge in US$ of course.

 

Why?

 

Because there is misconception by many that they will get more money in their pocket listing and selling in US$ instead of Cdn$.

 

It is unfortunate.

 

 

Message 15 of 16
latest reply

Posting Canadian Currency on Ebay.ca

Eureka!

Finally we are on the same page.

Your points are exactly the way I try to conduct myself when I buy & sell on ebay with regard to US$ buying & selling.

 

As pierrelebel points out though.....there is a perception / misperception that many sellers think they are getting more by selling to Canadians in US$ funds.

 

Before someone tells me I am wrong, I know that there is a small percentage of Canadian buyers who may not be as bright as the average bear, or who may have more money than they know what to do with ----- These are target Canadian buyers to sell in US$ to.

 

 

Message 16 of 16
latest reply