Intelligent SME.tech Issue 28 | Page 35

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// EXPERT PROFILE // costs , but it is certainly not the only strategy for dealing with conversion fees . Some SMEs add the conversion costs as an additional fee at checkout but , Shimkin cautioned , this is likely to result in abandoned shopping carts .

“ Instead of surprising customers with an increased price at checkout , SMEs should factor the conversion fee into the displayed price and alert their customers that bank fees may vary ,” Shimkin said . “ This helps to build customer trust and alleviates the burden of currency conversion fees on the SMEs bottom line .”

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Expect varying margins due to constantly changing exchange rates
The vagaries of daily fluctuations in the actual conversion rates between currencies also need to be factored in .
“ As a result , online SMEs ’ margins may vary , depending on the exchange rates fluctuations at the exact time the transaction takes place and should be factored into the SME ’ s planning ,” said Shimkin .
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