How are Sellers Handling the Exchange Rate re Canadian Buyers

[jt-libra]

In a recent thread, I mentioned, as did others, that I am continually monitoring and lowering my prices, in many cases, to ensure that items are still affordable for Canadian buyers.

In searching items for sale or to simply compare prices with competitors, I couldn't help but notice that many more sellers are listing their items in Canadian currency.  For those who have, I'm interesting in knowing how this is working out.  Did the number of Canadian buyers increase?  Did the number of American or international buyers drop off.  I know that buyers outside of Canada prefer to buy in U.S. dollars.

I'm interested in your thoughts and experience.

[recped]

This is definitely the wrong time to be listing in CA$.

There might be one exception.......Your inventory is purchased in Canadian Dollars, you sell an item which is extremely price sensitive and the majority of your sales are to Canadians with very little if any sales in the USA.

I doubt there are very many Canadian eBay sellers who fit that profile.

[jt-libra]

I do purchase in Canadian dollars and about 50% of my sales used to be to Canadians (but not recently).  The effect of lowering my price is an increase in sales to the U.S. since, even with our costly shipping rates, my prices are more competitive with U.S. sellers.  But, as I've mentioned previously, Canadian buyers have been very good to me and I don't want to profit from them in terms of a devalued dollar. 

I've noticed that quite a few Canadian sellers that I follow have reverted to CAD.  I've also read that some sellers are including in their description a note advising Canadian buyers to wait for an invoice from the seller showing the price in CAD.

[cumos55]

US dollars  have always been the choice for listing on eBay.... since I started selling on eBay

The high prices, and to a lesser degree the lower prices, expressed in US dollars, have been reduced...  such that the new Canadian price is about equal to the old US Price.

US buyers will be happy with this lower price.

Canadian buyers will see the lower US price.....  and may realize the meaning of the lower new price in Canadian dollars.

The effect of  the item's price might  be different if Canadians buy off eBay.com versus eBay.ca.  On eBay.com they only see the US price in a search report, while on eBay.ca   the higher Canadian price is shown in a search report... 

People who list in US dollars, and have reduced listed  prices, should have a benefit, in relation to US sellers,  on both eBay.com, and on eBay.ca.

Sellers who list in Canadian dollars on eBay.ca, and do not change the prices, should  have a benefit on eBay.com where the US price is shown.... and with no difference on eBay.ca

--------------------------------

Shipping is another aspect of selling on eBay..

Canada Post prices went up today... in Canadian dollars..

But shipping costs expressed in US dollars were not changed, 2015 relative to 2014,   because the exchange rate  today  is close to $1.20 Canadian dollars to $1.00 US dollar.... higher in 2015 than at the time time in 2014

--------------------------------

Whatever happens with sales will be dependent on a buyer's perception.... price of an item in relation to perceived value.... and in relation to pricing by other sellers.

[jt-libra]

cumos, you've pretty much reinforced my way of thinking.  With regard to shipping rates, however, I've already been charging less than actual cost in an attempt to remain competitive.  The exchange rate helped in that respect.  But with the rates having gone up today, I'll have to increase the shipping cost to the U.S. by 10-15%.

[rose-dee]

---

@jt-libra wrote:

But, as I've mentioned previously, Canadian buyers have been very good to me and I don't want to profit from them in terms of a devalued dollar. 

---

What a lovely thing to say, and I do understand your feelings of loyalty toward Cdn buyers, but this may be a case where doing good might not being doing you much good from a business standpoint.  

Consider that the currency pendulum could swing back the other way at any time, and meanwhile postal rates will doubtless increase.  You may need that bit of wiggle room later in the year that you're getting now from the advantageous exchange.  

I've sold in $US almost from the beginning, and I don't plan to change.  I feel that continuing to sell in $US permits me to offer savings in other areas that (I hope) will increase sales - such as shipping "subsidies".  I don't intend to raise my shipping rates at all this year, whatever Canada Post does.  Mind you, 95% of my sales are to the U.S. or overseas, so I'm in a different boat than you. 

I tend to look at these currency fluctuations in the long run.  Over time, they probably come out about even. When the $Cdn was above the $US, I was feeling the pinch on every sale.  Now I'm finally getting a bit of a break, since I buy nearly all my supplies (including postage) with $Cdn.  Whereas previously I was losing some money on just about every shipping cost, now even though I'm still charging my customers less than actual shipping I'm taking far fewer losses. 

I guess I haven't really answered you inquiry, have I?   I've listed in $US for years, and agree with 'recped's' comments above.  Besides, I think Canadians understand $Cdn/$US fluctuations and accept them as part of reality.  Maybe you can keep listing in $US but continue to offer reduced pricing, and wait it out until your Canadian customers are benefiting again.  I'm sure this blip won't last long. 

[jt-libra]

---

@rose-dee wrote:

---

I've listed in $US for years, and agree with 'recped's' comments above.  Besides, I think Canadians understand $Cdn/$US fluctuations and accept them as part of reality.  Maybe you can keep listing in $US but continue to offer reduced pricing, and wait it out until your Canadian customers are benefiting again.  I'm sure this blip won't last long. 

---

I agree that most Canadians are aware that the exchange rate can drop to a more reasonable level and may postpone their discretionary purchases until then.  In the meantime, however, I'll continue to monitor prices and keep them as low as I can without losing money.  But the review of my listings is sure taking a lot more time than it used to 🙂

But, on the plus side, I am benefitting from the increased number of U.S. buyers.

Oh, one thing I didn't mention in my original post was that of the sellers I do follow, in addition to those who have reverted to listing in CAD, there are several others who still list in $US but advertise prices discounted by 15 to 20%.

[rose-dee]

---

jt-libra wrote: 

Oh, one thing I didn't mention in my original post was that of the sellers I do follow, in addition to those who have reverted to listing in CAD, there are several others who still list in $US but advertise prices discounted by 15 to 20%.

---

Yes, and that reminds me that I neglected to mention that by listing in $US, with the current exchange rate being so beneficial, I'm able to run the occasional 15% to 20% discount sale across the board in my store, in addition to offering free or "subsidized" shipping on most items.  

I suppose my approach is to just continue to roll with the waves, doing what I can for my customers and my bottom line when conditions are advantageous, and tightening things up when I really have to.  To continue the metaphor, I'll keep rolling as long as I can keep the boat afloat.  

[reallynicestamps]

But, as I've mentioned previously, Canadian buyers have been very good to me and I don't want to profit from them in terms of a devalued dollar. 

Do you have a lot of repeat business from Canadian buyers? If not, why extend discounts to someone who has never bought from you before and may never buy from you again, on the basis that someone else in a nation of 33 million bought from you a few years ago?

[jt-libra]

---

@reallynicestamps wrote:

But, as I've mentioned previously, Canadian buyers have been very good to me and I don't want to profit from them in terms of a devalued dollar. 

Do you have a lot of repeat business from Canadian buyers? If not, why extend discounts to someone who has never bought from you before and may never buy from you again, on the basis that someone else in a nation of 33 million bought from you a few years ago?

---

I just noticed your post.  Yes, I do have a lot of repeat customers -- more and more all the time -- and on both of my selling accounts.  If I didn't, yes, of course, your last sentence makes a lot of sense.

[cumos55]

Sales to Canadian buyers

2013   .......   80 % of sales

2014   .......   closer to 70 % of sales....There has been some adjustment to the postage rates that became a reality in January 2013

My aim is to make it easier for Canadians to buy from me.....That means reducing my price in US dollars..... which also makes my prices  look good to US buyers...

My Canadian price ...  today  .....will be close to my US price of one year ago ... mainly for high priced items 

and then postage, expressed in US dollars,   did not go up on my listings on January 12 

[zee-chan-jpn-books]

I'm thinking of switching back to USD next time I relist. Can anyone point to me where to switch my billing currency to USD? I know we're allowed to do this only once a year.

Also, is there a way to switch listing currency using bulk edit with sell similar / relist function?

Thanks!

[tobyshitzu]

Don't see why anyone would make a decision to change listing currency because the exchange rate changed.  If you listed a CAN$ $20 item when the dollar was .95 and that was the going price to make a sale, then you'd list at CAN$22 now.  The only difference is if you want to hold $US  without exchanging and are expecting/predicting/gambling on a favourable currency move.   People who did that lately have come out ahead, it can go the other way just as fast.  And which party (or both for CAN-CAN US$ sale ) get saddled with paypal's 2.5% exchange premium

[rose-dee]

That may all be true, but I think for many the main reasons to switch listing currency are to (a) appeal to the seller's primary customer base (which seems to me to be 'jt's' main concern); and (b) benefit from selling in $US and buying in $Cdn. 

My costs get lower every time the $Cdn drops another point because, even accounting for exchange fees, I sell in $US and buy most of my supplies in $Cdn (including shipping labels).  The odd time I do purchase in $US I use $US funds held in my Paypal account, so I don't suffer from the sagging loonie.  

[rosscd57]

90% of my sales are to the US. I sell in US dollars and as a result my prices have remained the same. I just smile more when I am packing items.

[77nici]

i notice on most of my purchases that they are charging me a rate that is HIGHER than

the current USA/CANADA exchange rate

**bleep** ME OFF

[lotzofuniquegoodies]

Weekend tongue in cheek post.

Unfortuntately this is a major ZombiE thread.

I've always wondered if I could get paid in Venezuealan Bolivars or maybe Iranian Rials? My balance would be  larger!!

$100.00 Canadian  = 33,271,291,156,146.89 Venezuelan Bolívares

$100.00  Canadian =  3,357,374.9 Iranian Rials

Could you imagine the conversion fees!!! 🙈

-Lotz

[mrdutch1001]

ZOMBIE THREAD from 2015!

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.