Canadian Dollar Trading BELOW US$0.71 this morning

https://beta.finance.yahoo.com/quote/CADUSD%3DX/news

 

Looking at it the other way, the US$ trades above Cdn$ 1.41 this morning

 

https://beta.finance.yahoo.com/quote/CAD%3DX/news

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Re: Canadian Dollar Trading BELOW US$0.71 this morning

question...If I purchase and item from Canada and I live in Canada, why am I paying US for that item??? just curious

 

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Re: Canadian Dollar Trading BELOW US$0.71 this morning

The currency of a listing is decided by the seller, not eBay.

 

If a listing is in US$, then the buyer remits in US$.

 

A few Canadian sellers will suggest Canadian buyers pay in equivalent Canadian dollars using the current exchange rate (for example US$10.00 = Cdn$ 14.20).  However, many buyers do not find it convenient since it requires a manual payment operation.

 

If the listing is in US$, the automatic payment method - by default - is in US$ and a buyer cannot change that.

 

Why would a Canadian seller list in US$?  Because many consider the USA their largest market and feel they should list in US$ to please their American customers.

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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@auntiekk40 wrote:

question...If I purchase and item from Canada and I live in Canada, why am I paying US for that item??? just curious

 


That is because on eBay sellers have to choose which currency to use to list each item - and there is only one currency/price allowed per item (they can't list one price in $US and a different price in $Cdn).  However, eBay's system does show the listed price converted into the equivalent local currency.  So if you're browsing on eBay Canada, you would see, for example, a $10 US listing shown as approximately $14 Cdn today.  

 

If the majority of a seller's buyers are in the U.S., they will probably want to list in $US.  Unfortunately for Canadian buyers, this means paying the exchange rate premium on items listed in $US on eBay.  However, many Canadian sellers do list in $Cdn.  To check this, on eBay Canada (ebay.ca), filter your search for items located in Canada, then look for items that have no $US (or other) equivalent shown on the listing itself, and you'll know you're seeing a price that was set in Canadian currency.  

 

However, there are some advantages to buying from a Canadian eBay seller:

  • Although you'll be paying the exchange difference to buy something that was listed in $US, many smaller Canadian sellers do not have to charge GST/HST, so you're saving that 12% to 16% (depending on the province).  
  • By buying from a Canadian seller, you'll be avoiding paying GST/HST (and the postal charges for collecting it) that you might pay on purchases coming in from the U.S..  
  • You also don't need to worry about getting overcharged by the GSP (Global Shipping Programme) that is so prevalent amongst U.S. sellers now.  I find some of the GSP shipping rates are outrageous.  
  • Lastly, if you buy something small and light that a Canadian seller can ship via letter mail (up to 36 x 27 x 2cm, and 500 grams in weight), even in a bubble envelope that fits those dimensions, then you'll probably be saving quite a bit on shipping as well.  As an example, it can cost $10-15 US for shipping to buy a sewing pattern from a U.S. seller, whereas shipping the same item within Canada will only be $2 or $3.  In fact, many Canadian sellers offer free shipping within Canada (I personally offer free shipping with multiple purchases).  
  • Although it isn't a price savings, you will likely get your item faster from a Canadian seller than if it has to go through Customs across the border from the U.S., especially if you're just paying for standard airmail shipping. 

I am speaking of course from the point of view of a Canadian seller who lists in $US simply because historically most of my customers are American and it keeps prices consistent for them.  But I love it when I get a Canadian buyer!  

 

Did I answer your question?  Woman Very Happy

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Re: Canadian Dollar Trading BELOW US$0.71 this morning

Just making up numbers, but, approximately 3% of my sales are to Canada, 5% world, 92% US. Where should I focus my attention?

 

Yeah, it is a stinkpot, for buyers in Canada how the Loonie has dropped. I compete with US sellers. CDN buyers can buy from me or an American seller, and, the price is the same. Actually, often times I am less because of no GSP.

 

Even when the Loonie was above the Greenback, my sales %'s were the same. Canadians do not buy. There is absolutely no, never has been, any incentive for me to price in Loonies.

 

When the established "world price" of a glove box handle is $30 US, I charge $30 US. I cannot be responsible for CDN fiscal policy. My American competitors charge $30, many adding on GSP.

 

Dealing in two currencies? Why not three as I have many sales to Israel? Why not in Euros as well as I have many sales to the EEC?

 

It is a business decision to price in the dominant currency for the dominant market.

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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@mr.elmwood wrote:

Just making up numbers, but, approximately 3% of my sales are to Canada, 5% world, 92% US. Where should I focus my attention?

 

Yeah, it is a stinkpot, for buyers in Canada how the Loonie has dropped. I compete with US sellers. CDN buyers can buy from me or an American seller, and, the price is the same. Actually, often times I am less because of no GSP.

 

Even when the Loonie was above the Greenback, my sales %'s were the same. Canadians do not buy. There is absolutely no, never has been, any incentive for me to price in Loonies.

 

When the established "world price" of a glove box handle is $30 US, I charge $30 US. I cannot be responsible for CDN fiscal policy. My American competitors charge $30, many adding on GSP.

 

 


I agree with your points, for the same reasons.  It's also been my experience that nothing has changed the percentage of Canadian buyers I get. 

 

Despite eBay Canada trying to cajole us into listing exclusively in $Cdn, I won't budge.  And if I'm forced to leave .ca as a result, well, I suppose I'll have to list on .com.  What's the rationale of listing in a currency that the vast majority of your buyers aren't accustomed to, when you can list in the currency they do use? 

Message 6 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

Plus if a seller purchases inventory in U.S. dollars he does not want to spend a lot of time adjusting prices in Canadian dollars when currencies fluctuate, especiall if the seller has touusands of listings.

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Re: Canadian Dollar Trading BELOW US$0.71 this morning

I list in US and always have since I started selling , my sales are around  2 % in Canada and 98 % to the US. I don't sell out side of North America any more because of the losses and high shipping costs. I get the odd complaint once and while from a buyer in Canada but I'm used to it now.

Message 8 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

I sell more to Puerto Rico than Canada. 1/10th the population and they buy more. 

 

PR median income is a fraction of Canada's, and Puerto Ricans buy more.

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Message 9 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

eBay is NOT doing a good marketing job!

 

Since August 2016 eBay-Canada has been trying to convince Canadian sellers that it would be beneficial for them to list in Cdn$ instead of US$ (except for auto parts).

 

http://announcements.ebay.ca/2015/08/27/7703/

 

Based on the comments above (and in other threads) and a quick look at different categories on eBay.ca where the item was located in Canada, it appears their campaign has failed.  Canadian sellers continue to ignore eBay's advice and are still listing in US$ in most instances.  

 

 

Message 10 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

I also list in US dollars since 95% of my customers are in the US. However, I always accept the equivalent and converted amount in Cdn. dollars if my buyers request to pay that way. Most don't though.

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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@pierrelebel wrote:
eBay is NOT doing a good marketing job!

 

Since August 2016 eBay-Canada has been trying to convince Canadian sellers that it would be beneficial for them to list in Cdn$ instead of US$ (except for auto parts).

 

http://announcements.ebay.ca/2015/08/27/7703/

 

Based on the comments above (and in other threads) and a quick look at different categories on eBay.ca where the item was located in Canada, it appears their campaign has failed.  Canadian sellers continue to ignore eBay's advice and are still listing in US$ in most instances. 

 


You mean August 2015?

Message 12 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

Pierre know what is going to happen.

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Message 13 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

I am old... and allowed to make that kind of mistake! Smiley Sad

Message 14 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@pierrelebel wrote:

I am old... and allowed to make that kind of mistake! Smiley Sad


We are make typos. I do it all the time. I just wanted to clarify what I read and if I misunderstood something. Sometimes I read a post and do not understand what was intended. I will read again later or I will ask for clarification. Smiley Happy

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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@pierrelebel wrote:

 

eBay is NOT doing a good marketing job!

 

 


I frankly don't think it's a question of not doing a good marketing job.  There is nothing good to market!  I think it's a question of sellers being too smart to fall for eBay's "propaganda" for a change.  

 

Clearly eBay intends to ultimately oblige all Canadian sellers to list in $Cdn, so they came up with a pile of completely unsubstantiated pap that they thought would turn our minds and get a lot of us switching to listing in $Cdn -- in many cases against our best interests -- before it became mandatory (i.e. to minimize the howling complaints).  

 

Added to this campaign of trying to convince us of what they plainly know is not a better choice for those of us who sell mainly to the U.S. was the unannounced little trick of quietly defaulting the SYI form to $Cdn.  That caught many of us off guard, and in my case I actually lost money because of it.  

 

No, I'm sorry, this was all just a bit too obviously disingenuous this time.  Just a bit too much rah, rah, rah. 

Message 16 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

mr. elmwood said:

Canadians do not buy. There is absolutely no, never has been, any incentive for me to price in Loonies.

 

It's not just on eBay.

In the early 80s when Vermont Castings woodstoves decided to expand into Canada, they were forced to go with B&M dealers because their catalogue shopping was totally ineffective in Canada.

Americans would happily buy a half ton of cast iron for over $1500 by mail.

 

Which gave me a job I loved for over a decade. And experience in unloading trucks while wearing high heels.

 

Americans will happily buy anything by mail order. And the internet is just another mail order catalogue.

Canadians want to see it before they buy.

 

 

rose-dee said:

I won't budge.  And if I'm forced to leave .ca as a result, well, I suppose I'll have to list on .com.

 

We should remember that our American neighbours see our dotCA listings in both loonies and USD if we do list in loonies. I suspect it confuses many of them.

As a bookdealer, I must list on dotCA for to avoid the stupid shipping cap on media. Even though I often usually offer 'free' shipping to both Canada and the USA,.

And as mr elmwood often tells us, if we buy our product in loonies and our postage in loonies, then sell in USD, our costs are 40% lower than they were two years ago.

 

 

 

Message 17 of 19
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Re: Canadian Dollar Trading BELOW US$0.71 this morning

And as mr elmwood often tells us, if we buy our product in loonies and our postage in loonies, then sell in USD, our costs are 40% lower than they were two years ago.

 

 

Yes he's mentioned that more than once but I don't see that from where I'm standing. Postal costs are not the same as they were one and  two years ago so I know that my costs are not 40% lower.   And, it's all relative. If I was selling in Canadian dollars I wouldn't be charging the same as I do in U.S. dollars.

 

From Jan 2014 - Jan 2016 LP USA  has gone up by approximately 50% ($3.79 - $5.79). I realize that the weight breaks have changed and that has benefited some of us at times but the price has gone up drastically in the last few years. There's no way that I would be charging the same for postage as I do now, regardless of the status of the Canadian dollar.

 

 

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Re: Canadian Dollar Trading BELOW US$0.71 this morning


@pjcdn2005 wrote:

Postal costs are not the same as they were one and  two years ago so I know that my costs are not 40% lower.   And, it's all relative. If I was selling in Canadian dollars I wouldn't be charging the same as I do in U.S. dollars.

 


Yes, I agree.  I've never been able to quite see where that 40% figure comes from.  I would say that personally my costs are about 20% lower due to listing in $US and buying my supplies (including shipping labels) in $Cdn, after taking into account the hikes in Canada Post rates and even in shipping supplies.  

 

However, if I were to list in $Cdn (which I will never want to do), I would probably charge the equivalent of, or very close to, my current $US listings, simply because otherwise it would be very hard to keep up with costs, not knowing where the $Cdn would sit from one week to the next.

 

The real beauty of listing in $US for me is that my prices are set against a standard that remains consistent for my buyers (the vast majority of whom are in the U.S.), and consistent in comparison with my competitors (almost all of whom are in the U.S.).  I can ignore the fluctuations of the $Cdn, and if I make a few more dollars due to the exchange -- as I have over the past year -- that helps me to be able to continue to "subsidize" my buyers' shipping, and/or offer free promotional shipping.  

 

Frankly, it would drive me nuts trying to keep my prices in line with my U.S. competitors if I were listing in $Cdn, given the volatility of the Canadian dollar over the past year.  

 

I do understand that these reasons may not hold true for all sellers, especially those with a decent Canadian buyer base.  But they are valid and important if most of your customers (and your competitors) are American.  

 

'Reallynicestamps' makes a good point about Canadians' reluctance to buy by mail order.  I would think that, for one thing, we don't have the strong domestic market history of mail ordering that the U.S. does.  Or maybe we just like to get out of the house more.  Woman LOL

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