An Ideal Payment Solution for India-Based Amazon Sellers and Suppliers
Ecommerce entrepreneurs in India have been held back by their banks when it comes to operating on a global scale and receiving disbursements from Amazon and other global marketplaces. Banks such as HDFC Bank, State Bank of India, ICICI Bank, and Axis Bank have been known to charge hidden fees, low exchange rates, high processing fees, and offer no real transparency into payments.
Not only were India-based sellers being taken advantage of by their banks, but they were also losing a significant amount of money working with Amazon Currency Converter for Sellers (ACCS). While ACCS is convenient and most new sellers would want to work with them since Amazon is a reputable brand, there are more cons than there are pros when it comes to using ACCS.
Customers who formerly used ACCS, before switching to PingPong encountered the following obstacles:
- High fees: When taking into account that some FX providers are fee-free and have decent exchange rates, signing up for ACCS can seem like a daunting endeavor.
- Changing exchange rates are a burden: Having inconsistent exchange rates means that your top-selling product at any time can be your least proﬁtable product.
- ACCS’s priority is Amazon, not the seller: The overall purpose of ACCS is to make money off of Amazon sellers.
- Amazon adds additional fees into the payment statement & doesn’t clarify what these fees are or the reasoning behind the fees.
- Amazon charges you for using their platform via a subscription and a referral fee on top of the percentage they will take out of your sales.
- ACCS offers no real cost-savings on FX and their ﬂuctuating rates could leave you in no better of a position than if you used a bank or an FX broker.
See below to get an understanding of your potential savings when switching over from ACCS to PingPong.
Benefits of paying your suppliers with PingPong
With the pandemic causing a tremendous influx of new ecommerce entrepreneurs, Amazon’s marketplace suddenly grew saturated, making it increasingly difficult to achieve success across product categories.
Supply chain shortages due to border closings, ports being shut down and shipments being limited, have changed the process for sourcing and paying for inventory from Indian and Chinese suppliers.
More and more buyers are realizing they need systems in place for sourcing and receiving goods in a profitable timeframe.
With this in mind, PingPong set out on a mission to solve these pain points and to build more trust, and transparency with our customers. With the acknowledgment of these pain points and challenges that customers were facing, they launched Supplier Payment.
Here are some advantages of paying suppliers via PingPong
Make payments to your overseas suppliers, vendors, and business partners under a single platform. Pay suppliers in real-time in their desired currency, all while getting the most competitive FX rate available.
Money-sharing apps are risky and wire transfers are virtually untraceable. With banking technology and infrastructure built into their platform, PingPong allows you to pay your International suppliers in their local currency at the click of a button.
Your money is protected from the risks of fraud and money scams under a single platform, including a rigorous KYC identity verification process for all customers, and the suppliers you choose to pay. Feel protected knowing suppliers have been vetted, accounts are insured, and PingPong is licensed and regulated in the countries where they operate.
Here’s how paying your international suppliers works
Paying suppliers should be as simple as moving money at the click of a button.
When someone uses PingPong’s platform, they simply click a button to move money from point A to point B. There are many things that are occurring in the background to make sure this process is low-cost to you, seamless, and effortless to go through.
PingPong’s number one priority is to ensure that your money arrives on time, in full, and to the correct recipient. Clients go through a Know Your Customer (KYC) and a strict vetting process by local compliance teams to ensure the safety and trust of our clients when it comes to identity and sending their funds internationally.
PingPong ensures that there aren’t payment delays, financial fraud, or anything else that can negatively impact your business and experience.
Example: In the US, a lot of companies are sourcing products from Asian regions such as Vietnam, India, and China. When it comes to sending money from your native country to another part of the world, most business owners share some concerns (money getting lost or delayed when in transit) when sending money from the US to the other end of the world.
PingPong has established offices and local banking infrastructures in these countries to make sure that your payments arrive on time and in full. This puts you, the seller, in full control of the entire payments chain process reducing any risk of delayed payments by removing intermediary banks, and the need to rely on ACCS.
Say goodbye to:
- Payment time delays due to multiple bank intermediaries
- More parties involved = more risk
- Expensive handling fees
And say hello to:
- Same day transfers
- Accurate tracking
- Transparent costs across the board
- Amount billed = amount received
These advantages are critical to any ecommerce or Amazon seller’s success. When it comes to surviving the already disrupted supply chain and inventory difficulties the world is facing, vetting suppliers (or having a payment provider do so on your behalf), building better connections with such suppliers, and being able to pay them at the touch of a button is crucial.
Having a helpful payments provider as part of your operational structure is a key differentiator when it comes to achieving success on marketplaces like Amazon or Etsy, to name a few. For the foreseeable future and beyond, this method will result in significant cost savings, transparency, and flexibility in your inventory and supply chains.
PingPong is offering an exclusive offer to the India Sourcing Network community: Sign up for PingPong using this link, and enjoy a fee waiver of 3 months.