Dalstrong partners with Airwallex to simplify and scale its global operations
Airwallex helps Dalstrong reduce fees and FX expenses while simplifying the complexity of operating in multiple markets with different currencies.
“Airwallex saves us $40,000 annually in collections costs from our sales on Amazon, which is the majority of our sales in the US market. It also allows us to ‘repurpose’ our international currencies. For example, if we sell in Europe we can pay European suppliers in euros as well. There’s no need to double convert.”
In his youth, Dalstrong CEO and Founder Dave Dallaire spent a lot of time working in restaurant kitchens. His vision for Dalstrong was to create culinary tools to match the uncompromising drive for perfection that inspires every professional chef.
Today, Dalstrong is a global eCommerce business fulfilling that vision as it expands its reach beyond the US and Canada to Europe and the Middle East.
Global expansion increases revenue, but also complexity and costs
Like any global business, Dalstrong collects and makes payments in multiple currencies. In its case, US dollars (USD), Canadian dollars (CAD), Great British Pounds (GBP), Australian dollars (AUD), and euros (EUR).
Traditional banks charge fees for converting one currency to another. One priority for company controller Edward Agaba and his team was to reduce these costs.
“I'm responsible for ensuring we’re liquid enough to cover all our obligations and we’re receiving payments in a timely manner. We want to hit our targets on a daily basis — accounts payable and receivable, and inventory — as well as being aligned with overall company strategy and where we need to be in three to five years.”
Avoiding the costs of double currency conversion
One of the ways to ensure adequate liquidity is to minimize the fees associated with currency conversion. Foreign exchange (FX) risk is no longer just an issue faced by big multinational companies. In fact, any company with suppliers or customers located outside their home country is subject to foreign exchange fees and currency fluctuations. Companies like Dalstrong.
When Dalstrong opened its Amazon store in 2019, the business had the opportunity to expand in Europe and Canada. But there was a catch. Amazon charges its merchants a 2.5% FX fee when drawing down international currencies into a USD bank account.
Not only was Dalstrong charged an FX fee when accepting customer payments in CAD and EUR, they were charged a second time when paying international suppliers, partners and employees.
The solution? Opening a Global Business Account with Airwallex.
With an Airwallex Global Account, Dalstrong can open multiple foreign currency accounts (including CAD and EUR) at the click of a button. The business can connect these accounts to Amazon seller central and draw down funds in several currencies without being forced to covert to USD. The business can hold these funds in their multi-currency account and use them to pay international suppliers, all without paying FX fees.
If the business does need to convert currencies, Airwallex charges just 0.4% above the interbank rate. Much cheaper than Amazon.
Airwallex allows Dalstrong to hold and settle their international Amazon revenue in many currencies, reducing costs and operational overhead.
“With Airwallex, we save 2.5% right off the bat compared to what Amazon was charging us. Plus, the accounts payable team has cut its FX transaction and preparation time from six hours per week to only two. That kind of saving adds up.”
Looking ahead — physical stores
As an eCommerce company that sells a high-quality, masterfully designed physical product, Dalstrong has ambitions to enter the traditional retail market — not just clicks but bricks. And managing operational expenses with a solution like Airwallex helps support that ambition.
“Physical stores are in the works,” says Agaba. “We want to reach out to our customers and encourage them to visit us. There’s an untapped segment of our customer base that wants to handle the product before investing in it.”
The company is also expanding into partnerships with other well-known brands such as the video game Call of Duty. “It really gives us access to an expanded potential customer base,” says Agaba.
“If you are an eCommerce company looking to expand beyond your locale, you need a solution like Airwallex. And, if you are having to collect in different currencies and pay in those same currencies, again Airwallex is the place to go.”
What users say about Airwallex
“Airwallex has been a game changer for all our banking needs. As a fast-growing startup, we need a scalable yet cost-efficient batch payment solution to pay our employees and vendors both inside and outside Hong Kong. Airwallex helps us save money on every bank transfer with their near-zero transaction fee and market-beating FX rates. We also use Airwallex’s multi-currency Visa cards for business travel expenses and SaaS subscriptions to avoid hidden bank fees that would otherwise have been difficult to spot. Would highly recommend other startups to get started with Airwallex!"
“Airwallex has been great for our team - it makes payments and transfers so much easier, and has saved us significant amounts of time compared to what we were doing before with HSBC. Airwallex's platform is easy to use and very intuitive. Airwallex virtual card has solved most of our painpoints with sharing corporate card numbers and credit card limits. The best part is being able to save money on all our monthly bank transfers, and we've already saved thousands of dollars by using Airwallex. Airwallex's support has also been highly responsive to troubleshoot any issues in a timely manner.
Co-founder & COO, Forkast.News
“Airwallex provides us with flexibility and cost savings in dealing internationally. We used Airwallex to receive our recent global fundraising round and pay international suppliers and are saving at least 5% per dollar transferred versus the big banks.”
George van Dyck
Finance Manager, Zoomo
“Airwallex has been a game changer for us. I cannot recommend these guys enough. The forex services are super efficient and super competitive. The customer service is not gold-plated, it's solid gold. One of the best eCommerce services for merchants we have come across since PayPal hit the scene 20 years ago."
CEO, Cosmetics Now – eCommerce
“Having all our global SaaS subscriptions in one place has streamlined our finance processes and enabled better tracking and control of expenses. It’s even better knowing that Airwallex isn’t hitting us with any international transaction fees.”
Chief Operating Officer, Dovetail – Digital Agency
“Airwallex is our one-stop shop for all our banking needs, in one easy-to-use interface. Without Airwallex, we would not have been able to scale our business as fast as what we’ve been able to achieve.”
Andrew Ford and Rosa-Clare Willis
Co-founders, Crockd – eCommerce
“Airwallex saves us $40,000 annually in collections costs from our sales on Amazon, which is the majority of our sales in the U.S. market. It also allows us to ‘repurpose’ our international currencies. For example, if we sell in Europe we can pay European suppliers in Euros as well. There’s no need to ‘double convert."