How to keep suppliers happy with fast and easy payouts
It is important to keep your suppliers happy by paying them on time, but it should not cost you the world in fees. Here is how to approach it.
Deciding how to pay suppliers is one of the first things that an ecommerce business needs to do, but how and why exactly does the method of payment matter?
Spiralling costs are the main reason that you must consider different methods of payment. This comes in two flavours:
- Service fees charged by banks and payment platforms
- Administrative and time-related costs
Each different payment method that you use will add to your overheads.
The traditional method of paying, by cheque, is the least optimal. Cheques are slow to arrive, can get lost, and are hard to track. They’re also not receivable in all jurisdictions.
Another way of paying freelancers abroad is by direct wire transfer. It is quite a secure way of sending large amounts of money, but most banks charge quite a lot for the service. The most popular global online payment system, Paypal, is also known for its high fees.
Many companies are still stuck using old slow methods to pay their suppliers. What if there was a better way?
A better way to pay
OCT payments are a welcome alternative for making payments to suppliers. The method is cost effective, faster, and available in 140 different currencies. You can push payments to a billion eligible Visa, MasterCard or Maestro cards all over the world. What’s more, it is very easy to trace payments done through OCT, giving both you and your supplier the peace of mind to do business together.
Start by asking your remote workers or freelancers if they have a debit/credit card and introduce them to OCT. If they agree, you can pay them on the card, without needing their bank details. All you need is their credit card number – no hassle!
So, the next time you are working with a freelancer, suggest this method of payment. It will simplify both your lives. And no – paying your suppliers by cash is never an option!
Are you an ecommerce entrepreneur with suppliers abroad? Get in touch with us to learn how OCT can benefit your business.