Dalstrong partners with Airwallex to simplify and scale its global operations

Edward Agaba

Controller, Dalstrong

“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.

Edward Agaba

Controller, Dalstrong

“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.

Edward Agaba

Controller, Dalstrong

“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.”