Cdn$ keeps moving UP (US$ moving down)

It was not that long ago (early May) that one would get about Cdn$ 1.37 for every US dollar.

 

Two months later, the current rate is below Cdn$ 1.27 for every US$.

 

https://web.tmxmoney.com/forex-quote.php?qm_symbol=$USDCAD

 

Sellers listing and selling in US$ should be unhappy about this change of direction in the value of the dollar.

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Cdn$ keeps moving UP (US$ moving down)


@hlmacdon wrote:

It's not necessarily a confusion issue, or at least I don't see it that way. For me it relates to competitive positioning and natural price points. Ebay buyers are thrifty in nature. If the currency swings it effects search ranking with a whole class of buyers that shop by price filters/high/low.Natural price points still play a role in buyer behavior as well, although less so these days with algorithm driven pricing models. For other buyers there is an implied extra cost with the currency conversion that can put them off, but I think the notion that American buyers aren't comfortable buying abroad or get confused by currency is a meme that can be retired these days. 

 


You may have a point that Americans are becoming more accustomed to buying abroad these days.  However from a marketing standpoint, if a seller knows that the majority of his/her customers are going to be American, the less a listing appears "unusual" or "other", probably the better.  

 

This of course relates directly to competitiveness and natural price points, as you say.  Weird or unusual price points being arbitrarily displayed are one part of that argument, but so is the question of seller control over exact pricing.  If I know my U.S. competitors are selling a similar item at $22.95 to their U.S. customers, I want control over a stable price point that remains competitive over time.  This is one of the big problems I could foresee in listing in $CDN for my particular situation.  I'd also say that volatility and fluctuations just don't look good to consumers generally, especially if the price appears to be rising.  

 

Perhaps confusion was too strong a word, although I have seen a number of reports by Canadian sellers about U.S. buyers misunderstanding $CDN prices in Best Offer scenarios. 

 

I'm not sure I agree that throwing $USD prices at Canadians is deadly, not because it isn't true where eBay.ca is concerned, but because I expect a lot of Canadian buyers go to eBay.com to shop, are well accustomed to dealing with $USD pricing, and understand the relative value of the currencies.  I also have to admit that having been a frequent eBay buyer for years, the selection from Canada is poor in comparison to the U.S., whether you start on .ca or .com.  I often filter for "Canada only" in search, but usually don't find what I want there (unfortunately).  

 

There seems to be an impression that I'm critical of sellers (one in particular) who list in $CDN on eBay.ca, or that I believe it's somehow an inherently bad idea.  I've never had that view, ever.  I simply don't think it's the best choice for every Canadian seller -- which isn't the same thing.  For those whose competitors and buyers are mostly American, anything that can be done to level the playing field makes sense.  I've listed in both currencies at various times over the years, and have always done better using $USD listings.  That would likely not be true if I had a different buyer mix.  

 

I hate to end on a downbeat, but all of this discussion about US/Cdn currency variations may soon be moot.  Since nothing else has been successful for him, apparently Mr. Trump has decided it's time to focus on trade this week, and specifically NAFTA.  Who knows what chaos he'll churn up there. 

 

 

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Cdn$ keeps moving UP (US$ moving down)


@mjwl2006 wrote:
Yes. True. But I have to assume some level of sophistication in the part of the buyer. Who will look at the value of their native currency against goods offered in foreign currencies from foreign sellers on a marketplace that is, after all, renowned as connecting people from around the world, and decide on the best value for their dollar.

I also assume Canadian sellers listing in CAD on eBay.ca are smart enough to utilize Markdown Manager and readjust prices according to worldwide currency realities.

I think perhaps you're giving a little too much credit to the average eBay buyer.  

 

Be that as it may, using Markdown Manager and price adjustments doesn't necessarily solve the problem, at least in any efficient way, for Canadian sellers listing in $CDN on eBay.ca.  

 

All we have to do is take a look at the chart above (Pierre's link) to realize that a seller would have to do an awful lot of busy work to keep up with fluctuations, and be constantly on watch about currency values.  Admittedly, one could look at the yearly average fall in value of the $CDN to date and decide to use that as a benchmark for price adjustments, but if there was a sudden significant rise in the $CDN, that adjustment might have to be done all over again.  

 

The matter of bizarre price point displays aside, there is also the question of how often to adjust -- every week, every month, or less frequently?  If values suddenly rise again, do you re-adjust at that time, or wait and hope?  For sellers who use flat rate shipping (which eBay has told us is the vast majority), shipping costs might need to be adjusted for any significant change in the relative $USD/$CDN value, which is not a pleasant prospect.  

 

This is one of the reasons I decided not to stay listing exclusively on .ca in $CDN (although I certainly considered it when they removed $USD listings).  But as you know I sell mostly to American buyers, so listing on .com in $USD meant I wouldn't need to be a money-market watcher.  It was simply one more "pro" for the .com side against the list of "cons". 

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Cdn$ keeps moving UP (US$ moving down)

its really negilible (sp).  I am, for one, happy, the CAD is geting a good swing from a POV of a buyer.

 

and be **bleep** Mr. Trump keeps messing with our lumber industry.  I heard on the news the US will imposed tariffs on lumber coming into states?

 

Us buyers will still buy if you provide price points, loosely speaking.

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Cdn$ keeps moving UP (US$ moving down)

I can only speak for myself.  If I want to sell to the US buyer I have to list on .com.  I have a few sales to US buyers from my .ca listings but only a few.  The US buyers purchase from .com not .ca.  

 

This weekend I have sold 6, all to US buyers, all listed on .com except for 1 which was listed on .ca.  

 

That is just the way it is for me.  International buyers will buy off both .com or .ca if they want the item, but I have found for whatever reason, US buyers in the CD category only want to purchase off .com at least from me. 

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