Canadian or U.S. Dollars?

[snoopwiz]

Hello all. For those currently selling on .ca, in Canadian Dollars, and with the CDN dollar at a three year low, are you considering switching over to USD in your listings?  Has anyone figured out at what exchange % is it advantageous to do so?

[brandeentertainment]

my though it US buyers see the Canadian dollar as an instant sale price and as for Canadian buyers the more the Canadian dollar drops the less attractive US currency is to Canadian buyers BUT there are others with complete opposite outlooks then me  and maybe they are right and i am wrong

[rose-dee]

There really are two valid sides to this subject, and it's difficult to decide which is better from a purely business point of view. 

On the one hand, $Cdn listings will look like a great bargain to US customers when the $Cdn is low, and yet eBay indicates that listing in $US will increase sales, presumably because Americans prefer to see a currency they're completely familiar with. 

On the other hand, if a lot of your buyers are Canadian, the $Cdn listing price might appeal to them.  I wouldn't say familiarity is a problem for Canadian buyers, as most of us are aware of where our dollar stands in terms of the US dollar.

I've been listing in $US for quite a few years, even when the $Cdn was below $0.80 US.  I look at it this way: most of my buyers are in the US, they prefer to see prices in $US.  When the $Cdn dollar is low, I can afford to offer more sales (I have a store, so I can put items on sale selectively), or offer free shipping promotions, which I hope will appeal to both US and Canadian buyers. 

It also means that even with the Paypal currency exchange fees on my eBay income, I do come out ahead buying my supplies, postage, etc. in $Cdn.  If the $Cdn rises again, I'll just leave things as they are and will neither be gaining nor losing.  However, if I were to switch to listing permanently in $Cdn, then I'd likely have to adjust my prices depending on the vagaries of the Canadian currency. 

I also occasionally buyon eBay, in which case I always use my Paypal US dollar balance, to avoid any currency exchange loss.  Paypal also allows you to keep a $Cdn balance, which can be helpful if you're buying in $Cdn on eBay or elsewhere.

So, for the foreseeable future, I'll be sticking with $US listings.  

[snoopwiz]

brandeentertainment  Appreciate the response.  With much less than 5% of my sales being within Canada, that just is not a major concern of mine. Also, for the most part, offering OOAK items with very little (if any) competition,  I am confident my goodies will sell to the right buyer, whether they see it as $20.00 Canadian ($19.00 USD) or straight up as $20.00 USD.

I am just trying to figure out, at what point (exchange rate) does it become advantageous to me (and other Canadian sellers) to switch to USD from CDN?  I have glanced through the Paypal "fees" pages and am still a bit confused. I will look again, see what I find and post back here if I find anything profound..

[snoopwiz]

rose-dee  Thanks for your response. From what I have read, it seems the CDN dollar is at the "borderline" of whether it is worthwhile for me to switch over to USD on my listings. As I said in the post above, I still need to re-read their less than easy fee schedule to see who will end up with more if I do, Paypal or me. Thanks again.

[brandeentertainment]

The one thing I hated when I started selling was the US exchange when I withdraw money to my bank account .,....

I list by profit margins and that is that so If I listed in US it would equal the same as if I listed in Canadian...

It is really hard to determine and even keeping a record of trying both would come up with sketchy results as sales depend on so many factors passed the currency you would really never be able to determine is the currency is affecting the sale which is why I never bothered with ebays INCREASE sale with US currency how do they tell that ...

My sales could be dead one month because it's plus 40 out and nobody is sitting watching movies or busy one week because everyone just got there pay and on and on and on so to be conclusive on the matter it is almost impossible which would probably why ebay doesn't say if you switch to US currency we Gaurantee 15% increase in sales..

As for me my US sales in the last 2 months have over tripled and now making my Canadian buyers alot smaller of a percentage of my sales...

IS this due to the currency ? I have no freakin clue ....

[snoopwiz]

Canadian dollar dropped almost another cent today. Interest rates being held as they were. More indications the dollar will drop further (to help Canadian exporters), so, my question is.     Anyone currently selling on .ca in Canadian dollars going to switch to USD?

[pierrelebel]

"Anyone currently selling on .ca in Canadian dollars going to switch to USD?"

Not me.

I look at the big picture.  A few percentages here and there will not make a real difference on the long run.  On the other hand, Canadian buyers may feel they get a bargain when buying in Cdn$ and not having to convert and pay conversion fees as more Canadian sellers switch to US$ and American buyers will understand they pay less, much less than the Cdn$ price shown.

Remember: when selling in Cdn$ and collecting in Cdn$ from PayPal, you save the conversion fees.

[snoopwiz]

I agree about the perceived value US buyers see in paying in Canadian dollars however, for the most part, my `competition` is minimum, if at all, in what I sell so, its not as if they can price shop me. If they want it, they will pay $20 USD as fast as they will pay $18 and change Canadian.

As for my Canadian buyers....Well, my off the top of my head estimate would be less than 5% of my worldwide business is in Canada. Do they appreciate paying in their own currency? Of course. However, should I worry about the 5% of my business or capitalize on the other 95%, bringing in the extra $ in the exchange?

If I sell $70K over the next year, that extra 5% brings in $3,500. Sounds like a week or two on a Caribbean Beach to me. 🙂 

I do think I will take a wait and see attitude. If the dollar continues to drop and, let's say, levels at a not unthinkable 85 cents, then to me, its a no brainer.

[rose-dee]

I agree with your comments.  I think the decision largely depends on whether most of a seller's customers are in the US or Canada.  I think Canadian buyers are quite used to seeing prices in $US -- the Canadian equivalent is shown on listings anyway, so for the few Canadian buyers I do get, I don't think it's an issue.  Most of them shop on eBay.com with US sellers anyway.  

Like you, 95% of my sales are to the US, with some occasional overseas transactions.  Even though I may lose a bit on the Paypal conversion fees when I transfer the funds to my bank account, with the Cdn dollar now hovering around $0.90 US, the difference pays for the discounts in shipping rates I offer my buyers, and then some.  

Since I buy all my postage in $Cdn, I save another few percentage points when the $Cdn is lower.  Although I haven't specifically done the math, I expect that savings alone probably offsets most of what I pay in conversion fees to Paypal. 

The other advantage to listing and selling in $US is that, instead of switching listings from one currency to the other depending on which way the Canadian dollar's value goes, you can selectively offer sales (if you have a store).  So, when the $Cdn is below par, I run more sales -- at higher percentages when the $Cdn drops further.  When the $Cdn is close to par, I run fewer. 

What's better -- switching your listing currency as the wind blows (which may confuse some US buyers) -- or offering sales based on how the currency is doing?  I think the latter is easier (of course you have to have a store). 

[snoopwiz]

Still sitting on the fence. Leaving on holidays the end of the month, will be shutting the ebay store down for 2 weeks and make my decision (pending where the Canadian Dollar has gone at that time) when we return.

[pierrelebel]

Have a safe trip.  Enjoy your vacations.

"pending where the Canadian Dollar has gone at that time"

The value of the Cdn$ in relation to the US$ (or any other currency for that matter) should have no influence on your decision.  Your items should sell based on their percieved market value - in the currency of the buyer - not the currency of listing.

If an item is really worth US$20 to the buyer, it does not really matter if listed at US$ 20 or Cdn$ 22.  Either value will cost your buyer approximately US$20.  However, the listing at Cdn$22 will yield more money in your bank account, avoiding the conversion fee and resulting - possibly - in slightly lower listing fees.

[snoopwiz]

Not me.

I look at the big picture.  A few percentages here and there will not make a real difference on the long run.  On the other hand, Canadian buyers may feel they get a bargain when buying in Cdn$ and not having to convert and pay conversion fees as more Canadian sellers switch to US$ and American buyers will understand they pay less, much less than the Cdn$ price shown.

Remember: when selling in Cdn$ and collecting in Cdn$ from PayPal, you save the conversion fees.

Truth is, my Canadian sales only account for about 5% of my total sales so,  my concern is not whether they believe they are "getting a bargain" or not. The remaining 95% of my sales are almost evenly split between the U.S. and others (International)  My best guess is the International are more than used to paying In USD and,   just don't see my U.S. buyer bypassing my listing because it is in their own currency.

Although my widgets can't be classified as truly OOAK, they are pretty darn close, with very, very little (if any) competition on the bulk of my listings. Either way, food for thought. I will see where the dollar is when I return on the 15th and if it is at 90 cents or less, I will take the giant leap, switch to USD on a trial basis and see if it was the right move for me or not.

Thanks for your comments/suggestions, they are appreciated.

[trusted_canadian]

Hello fellow sellers,

This is a great question, from my experience selling in Canadian dollar is more beneficial, the reasons are as follows.

Canadian buyers hate to pay more in Canada by having to convert their Canadian dollars to US Dollars to purchase something in Canada.

USA buyers like to buy Canadian dollar items because they instantly get a decent discount on them.

Furthermore for you the seller,

If you are withdrawing your monies to your account the USA dollar has to be converted to Canadian dollar, and guess what, paypal conversion gets a cut anyways.

So no matter what selling in your own currency is always best, eBay converts the listing in the USA site to US dollars anyways, so people will see it as a low priced item.

Best of luck to all the sellers 🙂

[puckstopshere]

I have listed in U.S. dollars for 14 years.  I see no reason to change.  As a Canadian and an occasional buyer, I can easily work out in my head whether a deal is a good one or not - no matter what the currency and buy/bid accordingly.

[michaelbb2]

About 75% of my sales are made in Canada so I list in CND funds.  When the dollar drops like it has lately, my sales from the US actually go up a bit, I'm thinking that the Americans see a bargain.  My Canadian sales seem to stay aout the same since $1 is still $1.  The dollar can keep dropping as far as I'm concerned.....it's also good for exports.

[wmadepot]

Do we have the same visibility in both currency ? I heard that not ?

[pierrelebel]

"Do we have the same visibility in both currency ?"

Currency does not affect visibility.

[wmadepot]

thanks for your fast answer  Merci

[prarie_nerd]

I only list in CAD if it's something that will only sell in Canada (aside from a few listings that I need to migrate but haven't yet and don't want to loose lol)
Canadian buyers have 2 options- buy from me is USD and pay less for shipping or buy from someone in the US and pay USD, maybe GSP and if not more for shipping it will be close to the same. No matter what I have the the advantage of being in the same country and buyers still like that.
Before ebay forced the change I tried listing in CAD a couple times to clear out stock thinking US buyers would see it as a deal. They didn't. They were beyond confused and thought they couldn't buy it. I was truly amazed how many messages I got about it.
I also don't keep exact records of anything. I know what I paid for something and most of my purchased stock is in USD. But I keep track of it in CAD. So I pay $30CAD, sell for $100USD, the exchange basically covers my fees so I know I made money lol