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 minimise 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.”
See how our customers are finding Airwallex
"Airwallex have been a fantastic partner for Olsam Group as we grow our eCommerce brands to new channels and new markets. Their easy to use interface and integrations have been a joy for our finance team to use as we scale."
"For ME + EM, expanding into international markets such as the US has been our focus - and with Airwallex, we were able to use their local USD Global Account to collect from our Paypal US account, thereby allowing us to save 3% on each transaction. The process of working with Airwallex has been seamless - our suppliers get paid quickly, we have a dedicated Relationship Manager who has been really patient, helpful and quick to respond. I am keen to use their cards to pay for our ad spend in the near future to save further on our USD invoices."
Finance Manager, ME + EM
"We've had such a fantastic experience switching to Airwallex. Previously we were using a traditional bank to make all of our international transactions and they'd constantly lock us out of the account everytime we made a transfer, resulting in hours and hours of lost time on hold. Airwallex is secure, makes it super quick and simple to make and receive international payments."
Managing Director, Perspective Pictures
“We used to pay Stripe between $5,000 and $10,000 a month in conversion fees because most of our customers pay in dollars. Now we funnel that money into our Airwallex US dollar account, we don’t have to pay commission. We’ve saved more than $100,000 so far this year”
Founder and CEO, Brandbassador
"We love Airwallex! It has considerably eased our invoicing and payments to contractors around the world. Sending and receiving money is much faster and cheaper than before."
Co-Founder, Mobile Transaction
“We are so glad that we have found Airwallex! There are no hidden charges, they are quick to respond to any queries and we had the smoothest transaction with amazing support from the team continually.”
Supply Chain Executive, Miss Patisserie
"Our water solutions company, Dropterra (go.dropterra.com) has partnered with Airwallex since inception and it has been the best banking and payment partner a company can think of. International transactions are easy, secure, and fast, the technology is incredible and their client service fantastic! We look forward to growing and deepening our relationship with Airwallex!"