When you are working on eBay UK, you receive money on Pounds, but if your PayPal Account is not a British PayPal, for example, US PayPal your default currency will be USD.
But the money you get is on Pound, so what happens in the background?
Well, PayPal will exchange the currency from Pound to USD, therefore we will lose money. Because PayPal’s Currency exchange rates are not that good.
Without mentioning that we want to keep our money on the currency which we received the payment for the first time. So we can easily pay on suppliers like Amazon, Walmart, Wayfair.
So if you are dropshipping on eBay Italy, France, Germany or any other European eBay Marketplace, we will want to keep our money on Euro.
How to solve PayPal currency conversion?
First, log in to your PayPal account and go to the settings page by clicking on the gear at the top right of the page.
Then from the menu, click on the “My financial info” section.
Now, all you need to do is to click on “Add a currency” to add your desired currency.
After doing this, you will start receiving all the payments directly to the currencies you have in your PayPal Account, so no more wasted money on PayPal’s Currency Exchanges.
A lot of drop shippers do not do this, even though it is a very important thing to do if you are working with multiple currencies or different marketplaces.