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In episode 7, Brad McCrory sits down with a leader in the space of cutting edge ecommerce, Gabriel Grisham. Gabriel works with OFX, an Australian online foreign exchange and payments company that is headquartered in Sydney, Australia.

Check out www.ofx.com online, and connect with Gabriel on LinkedIn or shoot him an email if you are a small business looking to hone in your profit margins while selling abroad. 

OFX was started by 2 guys on a beach who wanted to do better international money transfers. From this, it has grown to handling over $20 billion a year with 300 employees who can manage a diverse portfolio of difference currencies. 

This works by setting up bank accounts for your business in a more local currency called a “virtual accounts”. For example, a client who has grown their US business to half a million to a million in a year and goes to marketplaces like Amazon to start their international business—these places will send your money back for you and charge 3% which quickly adds up in the margins quickly. OFX in contrast sets up this same seller with a local currency account with whatever country currency they are in, so that they have one place to go and see balances and transfer on their time, not on the marketplaces time. In simpler terms, OFX helps companies to move their money better, faster and cheaper than marketplaces — even banks. If you can cut a couple points in the back end with moving your money, then it’s making the sale and almost everything a bit cheaper and more beneficial to you. 

Banks are great at hiding the actual cost of foreign exchange and international intermittence. They’re made to make money on interest rates and spreads—instead of the ability to efficiently move money internationally across borders. A huge missed opportunity for retailers is the ability to understand different currencies and their values with respect to one another in addition to how they change. The banks work to provide this service but they don’t do it to the benefit of the retailer. Another huge missed opportunity is not moving early enough with going global. For any seller that has a brand reaching 500k in revenue, you have to start looking internationally. It’s not easy, but it will in result lower a bit of your competition and price points may be a little different so it’s definitely something to look at earlier rather than later. 

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