eBay

momosworld · ‎10-01-2003

I remember almost 2 years ago the exchange rate was 1.59, those were the good days. Today the exchange is @ 1.317

How is everyone handling this?

I am getting killed with the exchange difference when I convert and I just don't lose $50 or $100, its more like thousands.... 😞

Do you think the exchange will ever go back up?

your-chic-shopper · ‎10-01-2003

moms world

There is a good chance it even going to get worse . I image the Canadian dollar will hit 80 cents around January ...

www-labels4less-com · ‎10-01-2003

Its great for my buying as I have to buy U.S. dollars to pay for my goods coming from offshore. The balance of course is that I'm selling my product for the same thing In U.S. as I was a year ago so i'm making less money.

stats-one · ‎10-01-2003

Cry.

I raised shipping rates where possible. I no longer like to post books over 1kg as it is too expensive to ship. Nothing more you can do.

kpamber · ‎10-02-2003

That's what used to make selling on ebay so profitable..."Buy Canadian, sell American", was my catch phrase. I used to be able to start my auctions at $9.99, and they'd snag 30 bids or so...I didn't worry much, because generally speaking, the exchange rate assured me that I would at least break even. I feel like I'm fighting a losing battle now, my start price has to be higher, or I'll lose money...and a few of my competitors are still listing at $9.99, and taking their chances. They are just kicking the $hit out of my business, but I can't afford to take those kind of chances! A double edged sword...with bids being fewer, and a few sellers giving stuff away, I'm wondering if it is worth my while. If I weren't so addicted to jewelry shopping, I'd give it a rest, but it is my favourite hobby (it is so nice to be able to insert the u in favorite and spell like a Canadian on this board!)...
k

cmagor-ctvi · ‎10-02-2003

Yes, the loss on exchange is eating just about every last cent of profit for me these days. I am in the process of eliminating the need to exchange it by getting a US$ credit card for purchases and a US$ bank account for revenue.

Chris.

acurael · ‎10-02-2003

Seek out the best exchange rate possible - forget the banks - head to an independant place - such as Custom House - you'll find them here: http://www.customhouse.com/

They guarantee to have the best rate available for "spot" transfers.

It's a little late now - but you can lock in rates with forward contracts - for up to a year with a deposit of up to 8% of the contract value.

This can be challenging though - do you lock in now? Is it going to go up? down? Time it right and you can do ok though.

momosworld · ‎10-02-2003

Thats the problem with the rates, for the past two years its just been dropping...dropping...dropping...

your-chic-shopper may be correct in saying that the dollar may see 80 cents and if that happens, well it may be time to pack it up for a while as its very hard competing with sellers from the US.

I don't want to start a political debate here but I hope someone new gets elected in US for the next election.

:-) and now 😞

deltone · ‎10-02-2003

I remember a couple of years ago, wishing for a better Canadian dollar (I love to travel in the US) but now I'm the other way around, now that I sell on ebay. If it keeps going like this, I might take a break from selling. The dollar, and some sellers flooding the market with certain items is making this whole thing less than profitable. :o(

acurael · ‎10-02-2003

Rates have not been dropping for the last two years - the drop started in Jan of this year.

Every exporter is in the same position - adapt or quit - there's nothing an individual can do to control the markets.

You can limit your risk by using the forward contracts. Does 1.3X suck? yes it does! Would 1.2X suck even more? sure it would? A forward contract will lock in today's rates for you. Sure you might lose some money if the rate goes back up, but that's better than the alternative no?

At some point the exchange rate would make it impossible to do business (profitably anyway). Find new suppliers, improve efficiency, etc. etc.

elvishmerchant · ‎10-02-2003

The change in exchange rate (as well as a few other factors) has pretty much cost me my business. I sell quite a bit less now than I did before, simply because there's no profit margin left. The fact is, the US economy is bad, so not only are we losing on the exchange, but there are fewer bidders and lower bids in general. Also, the US sellers get to offer dirt cheap "Media Rate" shipping while it costs us a lot more to ship the same items (even within Canada) and our parcels take longer to arrive ("Expedited" my a$$). All around it's bad for CDN sellers, but as acurael said... adapt or quit. eBay is no longer my primary business, and while I'm still hanging around (at least until after X-mas), my sales have dropped considerably.

firedept10 · ‎10-02-2003

momosworld

I have raised my prices now that I am more established on eBay. But I also am more careful what I sell. I try to sell several larger items a month and this has also helped. I keep a very careful eye on my categories and watch what is of interest, then search it out at a reasonable price from the auction houses to resell. I will agree it has cut the profit some but then again it has also lowered my selling fees.

Don

kpamber · ‎10-03-2003

Hey Don,
When are you going to lower the price on that bohemian garnet necklace???(LOL), I've been eying it for over a month!
k
P.S. My stepson is in the Brampton firefighter's calendar, shirtless...Mr. September 2004...