GreenPrice saves 6-digit transaction fees annually with Airwallex

GreenPrice was founded by Ben and Terence in 2018. They specialize in sourcing products that are nearing or have just passed their best-before date, aiming to challenge the common misconceptions about these dates, reduce food waste, and offer consumers more affordable options. 

One of the major challenges they faced in growing the business was international money transfers. Due to the nature of their products, they couldn't purchase in bulk from overseas suppliers. Frequent transactions with smaller quantities meant paying hefty fees for international transactions and currency exchange, which quickly ate into their profits. Additionally, traditional banks often impose limits on transaction frequency and amounts, adding another layer of difficulty to their daily operations.

Challenge 1: Expensive international transfers through traditional banks with 5-digit monthly costs

During its early stages, GreenPrice relied on traditional banks for international money transfers to pay overseas suppliers in USD, SGD, AUD, and KRW. They had an average of 60-80 transactions per month. For each transaction, they had to pay a SWIFT fee of HK$150-200, plus additional currency exchange fees and losses due to fluctuating exchange rates. This resulted in a staggering monthly transfer cost of over HK$10,000. After deducting the cost of goods and other operational expenses, the remaining profit was insufficient to fuel business growth, leaving the company stagnant.

Solutions & results: Bypass SWIFT with Airwallex international transfer services to eliminate unnecessary costs

With Airwallex's international money transfer service, remittances are completed through local rails, reducing the cost per transaction to just HK$2-3. This significantly reduces the cost of paying overseas suppliers, saving GreenPrice five-figure sums in unnecessary international transaction and FX fees each month. This enables GreenPrice to reinvest resources into business growth.

Ben

Co-Founder of GreenPrice

"It was a turning point for GreenPrice when we found the Airwallex solution. Compared to the hefty charges of traditional banks, the cost of making international transfers via Airwallex is around HK$2-3 per transaction. This helps us save a 5-digit sum per month – almost 6-figure savings in a year."

Challenge 2: Slow international transfers disrupt daily operations

Traditional banks take at least 3 business days to complete an international remittance. With public holidays and bank errors, it can stretch to several weeks.

As a common practice, overseas suppliers require payment before shipping. These payment delays pose a significant challenge for GreenPrice given the time-sensitive nature of their products. Not only do late payments damage relationships with suppliers, but they also impact delivery schedules and potentially lead to losses due to stock spoilage.

Solutions & results: Airwallex supports same-day international transfer and helps boost supplier confidence

Airwallex's fast international transfer service supports 150+ countries and 60+ currencies, with funds arriving in as little as 30 minutes. This enables GreenPrice to easily build trust with suppliers, ensuring timely shipments and hence smoother operations.

In addition, with Airwallex, GreenPrice can make transfers using local bank details. When the suppliers see payments originating from local banks instead of unfamiliar overseas institutions, they feel more secure and are more willing to maintain relationships with GreenPrice.

Ben

Co-Founder of GreenPrice

"Airwallex enables instant transfers. It only takes a few hours to complete international remittances. Suppliers are happy to receive funds instantly and will be more confident in doing business with us. They will also be able to arrange deliveries on schedule, contributing to a much smoother operational flow."

Challenge 3: Missed sales opportunities due to transaction limits imposed by traditional banks

Traditional banks often impose a limit on the number and amount of transactions on SME accounts, causing inconvenience for dynamic retailers such as GreenPrice.

Due to the nature of their products, when GreenPrice sources goods from multiple overseas suppliers each month, they can only purchase small batches, resulting in 60-80 transactions per month, exceeding HK$1 million in payments. Due to the transaction limits, GreenPrice will not be able to make another purchase from suppliers to capitalise on any shift in market demand, hindering their ability to boost sales.

Solutions & results: Enjoy greater transaction flexibility with Airwallex 

With no minimum transaction amount and various local payment rails in 120+ countries, Airwallex's international money transfer service empowers GreenPrice to make cross-border payments with an ideal combination of speed, transfer limits, and costs. 

GreenPrice can now adjust the frequency and amount of transactions based on market demand to seize sales opportunities or experiment with new suppliers in smaller batches, enjoying greater flexibility.