The New Global Marketplace
US-based brands are no longer geographically limited. A UK retailer can reach your US website and place an order. A Japanese distributor can request a wholesale line. International sales are no longer a "nice to have"—they're a growth imperative.
But international sales introduce complexity: currencies, VAT/GST, payment timelines, credit risk across borders. Ordrly's multi-currency settlement simplifies this, but there are other considerations.
Currency Management 101
FX Risk: Exchange rates fluctuate daily. If you sell to a UK retailer in GBP, your USD payout might be higher or lower depending on when you convert.
Upside: If GBP strengthens against USD, your $6,000 payout becomes $6,200. Profit!
Downside: If GBP weakens, your $6,000 becomes $5,800. Loss.
Mitigation strategies:
Immediate conversion: Ordrly converts orders in real-time, locking in the rate at order time. No surprise.
Hedging: For large international deals, consider FX hedging through your bank (advanced).
Pricing premium: Some brands add a 1–2% currency volatility premium to international orders.
Pricing for International Markets
Your USD prices don't automatically work internationally.
Example: You wholesale a product for $50 USD to US retailers (57% margin). A German retailer sees the same product quoted at €50. But at current rates (1 USD = 0.92 EUR), €50 is only $54 USD—not enough margin for international shipping, VAT handling, and currency risk.
Solution: Use geo-pricing (available on Growth plan) to set different prices by region:
US: $50
EU: €55 (equivalent to ~$60 USD)
UK: £45 (equivalent to ~$57 USD)
Asia: Negotiated on case-by-case basis
Payment Terms & Credit Risk
International retailers often request longer payment terms. A US retailer might accept Net-30; a German distributor might ask for Net-60 or Net-90.
Ordrly's Net Terms feature (Scale plan) allows you to:
Set custom payment terms per region or retailer.
Use credit scoring to approve or decline international credit applications.
Rely on Marketplace-Funded Payouts to get paid immediately while Ordrly manages retailer collections.
Pro tip: For first-time international retailers, start with cash payment or short terms (Net-15). As they build history, move to longer terms.
Tax & VAT Compliance
This is complex and territory-specific:
US brands selling to EU: EU retailers often charge VAT on their end (reverse charge mechanism). Your invoices should reflect this.
US brands selling to UK: Post-Brexit, VAT rules changed. Consult a UK tax specialist.
Shipping & tariffs: International orders may incur tariffs. Be clear about who pays (usually the importer/retailer).
Recommendation: Consult a tax advisor before launching international sales. The tax savings often exceed the consultation fee.
Logistics & Shipping
International shipping is slow and expensive.
US to EU: 10–15 business days, $50–150 per box depending on weight and zone.
US to Asia: 15–25 business days, $100–300 per box.
Strategies:
Consolidate orders: International retailers should consolidate orders (order fewer, larger shipments) to reduce per-unit shipping.
Landed cost pricing: Include estimated shipping in your wholesale price so retailers know the true cost upfront.
Fulfillment partners: Consider warehousing in key international markets (EU, Asia) if volume justifies it.
Currency Dashboard Essentials
Ordrly's Finance dashboard (Scale plan) shows:
FX summary: Total gains/losses from conversions this period.
Multi-currency AR: Accounts receivable broken down by currency.
Settlement log: Each payout with original and converted amounts and FX rate used.
Review this quarterly to understand your FX exposure and adjust strategy.
Step-by-Step: Your First International Order
1. Enable multi-currency settlement (Scale plan required).
2. Set your settlement currency (e.g., USD).
3. Set up geo-pricing for key regions (Growth or Scale plan).
4. Create retailer accounts for your first international partners and configure their regions.
5. Send a demo order. Test the end-to-end flow: quote in their currency, they order, you receive payout in USD.
6. Review FX and margin. Was the conversion smooth? Did you hit your target margin? Adjust as needed.
Common Pitfalls
Ignoring VAT/GST: International orders often need tax-compliant invoices. Make sure your system handles this.
Underpricing for shipping: "I'll just charge what I charge domestically." Nope. International shipping is 2–3x more expensive.
Not hedging high-value orders: If a single order is $50k, FX swings of 5% mean $2,500 gain or loss. Consider hedging or a volatility premium.
Assuming all retailers can pay net terms: International retailers may have tighter cash flow. Offer net terms but also accept upfront payment with a small incentive.
Resources
Ordrly Help Center: Multi-Currency Settlement Guide
International Tax: Consult a CPA or international tax specialist; tax treaties and VAT are complex.
Shipping: Use FedEx, UPS, or DHL international calculators to understand costs.
Ready to expand globally? Start small, learn the process, and scale. Your international growth journey starts now.