The world has become a global marketplace where a local seller in Homa Bay can sell textiles to a customer in Tampa Bay. Selling to US marketplaces has the potential to increase profit margins significantly. As a Kenyan seller tapping into the lucrative opportunities offered by US marketplaces, receiving payments efficiently and cost-effectively is crucial for business success. US marketplaces such as Amazon, eBay, and Etsy provide Kenyan sellers access to a vast customer base. However, navigating international payments can be challenging.

Fortunately, several methods are available, each with its advantages and drawbacks. This article explores the most effective ways to receive USD payments from US marketplaces.

Understanding US marketplaces

US marketplaces are online platforms where sellers can list and sell products to American consumers. Popular examples include:

• Amazon: The largest e-commerce platform, offering opportunities for individual sellers and businesses through its marketplace.
• eBay: A global platform for auctions and direct sales, popular for both new and used goods.
• Etsy: A marketplace focused on handmade, vintage, and unique items, ideal for creative entrepreneurs.

Here is how to receive payments on Etsy as a seller in Kenya.

• Walmart Marketplace: A growing platform for third-party sellers, offering access to Walmart’s extensive customer base.

These platforms enable Kenyan sellers to reach millions of buyers, but they typically pay in USD, requiring a reliable method to receive and convert these funds into Kenyan Shillings (KES).

Methods for receiving payments from US marketplaces

Kenyan sellers can choose from several methods to receive payments from US marketplaces, including online payment gateways, virtual multicurrency accounts, and traditional wire transfers via SWIFT.

1. Virtual multicurrency accounts

Grey (Recommended)

Grey is a multicurrency cross-border payment solution built by Africans and tailored for African sellers. It provides virtual USD accounts that can be linked to US marketplaces. Thus, sellers can receive payments seamlessly. Funds can be converted to KES and withdrawn to a Kenyan bank account or mobile money services like M-Pesa.

Pros:

• Highly competitive fees.
• Transparent exchange rates with minimal conversion costs.
• Fast transfers
• Direct integration with major US marketplaces like Amazon, eBay, and Etsy.
• User-friendly interface and excellent customer support tailored for African users.
• Supports withdrawals to Kenyan bank accounts and mobile money platforms like M-Pesa.
• Provides a virtual USD card for seamless online payments and shopping on international marketplaces.

Also read: Grey vs. local banks: The best currency exchange method in Kenya

Wise

Wise provides virtual bank accounts in multiple currencies, including USD, allowing Kenyan sellers to receive payments as if they had a local US account. Sellers can link their Wise account to marketplaces like Amazon or eBay.

Pros:

• Lower fees compared to PayPal
• Mid-market exchange rates, which reduce currency conversion costs.
• Ability to hold and manage multiple currencies.
• Faster transfers, typically within 1–2 business days.

Cons:

• Not all US marketplaces support Wise directly.
• Additional verification steps may be required to set up the account.

Payoneer

Payoneer offers virtual USD bank accounts and integrates directly with major marketplaces like Amazon and Walmart. Sellers receive payments into their Payoneer account and can withdraw funds to a Kenyan bank account.

Pros:

• Seamless integration with platforms like Amazon, eBay, and Walmart.
• Competitive fees.
• Supports multiple withdrawal options, including local bank transfers.

Cons:

• Transfer times can vary, sometimes taking up to 3–5 business days.
• Limited customer support response times compared to other platforms.

2. Online payment gateways

PayPal

PayPal is a widely recognised platform for international transactions and is supported by most US marketplaces, including Amazon, eBay, and Etsy. Kenyan sellers can set up a PayPal business account, link it to their marketplace accounts, and receive payments directly.

Pros:

• Easy to set up and use.
• Widely accepted across major US marketplaces.
• Convenient for smaller, frequent transactions.

Cons:

• High fees for international transactions, plus additional currency conversion fees.
• Potential delays in settlement, with funds sometimes taking several days to become available.

Limited withdrawal options for Kenyan bank accounts, often requiring a linked US bank account or third-party services.

Also read: 13 essential tools and resources for digital nomads in Kenya

3. Traditional wire transfers (SWIFT)

SWIFT transfers involve sending payments directly from the marketplace’s bank to the seller’s Kenyan bank account via the SWIFT network. This method is often used for large transactions.

Pros:

• Reliable for high-value transactions.
• It can be faster than some online platforms for direct bank-to-bank transfers.

Cons:

• High fees, often $20–50 per transaction, depending on intermediary banks.
• Potential delays due to multiple banks involved in the transfer process.

Choosing the right payment method

Selecting the best payment method depends on several factors:

• Transaction volume and frequency

For sellers with frequent, smaller transactions, virtual multicurrency accounts like Grey are ideal due to their low fees and fast processing. For occasional large transactions, SWIFT transfers might be considered, though the high transaction costs will erode profits.

• Fees and exchange rates

Compare the fees and exchange rates of each platform. Grey offers better rates and lower costs than PayPal or SWIFT, making it more cost-effective for Kenyan sellers.

• Marketplace support

Ensure the payment method is supported by the specific US marketplace. Grey is widely compatible with platforms like Amazon, eBay, Etsy, and Walmart, while SWIFT may require manual setup.

• Speed of transfer

If quick access to funds is critical, Grey and Wise offer faster transfers (1–2 days) compared to Payoneer (up to 5 days) or SWIFT (3–7 days).

Tips for Kenyan sellers

Here are some additional tips to help you make the right choice.

• Verify marketplace requirements: Confirm that the marketplace supports your chosen payment method and complies with its payout policies.
• Monitor exchange rates: Use platforms like Grey that offer competitive rates to maximise profits when converting USD to KES.
• Maintain compliance: Ensure your business is registered and compliant with Kenyan tax regulations to avoid issues with international transactions.
• Test small transactions: Before committing to a single method, test each platform with smaller payments to evaluate speed, fees, and ease of use.

How to use Grey for receiving payments from US marketplaces as a Kenyan seller

Grey is an ideal solution for Kenyan sellers due to its simplicity, affordability, and integration with US marketplaces. Here’s a step-by-step guide to using Grey to receive payments.

1. Sign up for a Grey account: Visit Grey’s website or download the mobile app to create an account. Provide basic details such as your name, email, and phone number. Complete the verification process, which may require identity documents like a passport or Kenyan ID.
2. Set up a USD account: Once verified, Grey provides a USD bank account with details (account number, routing number, etc.) that can be used to receive payments from US marketplaces. This account acts like a local US bank account.
3. Link Grey to your marketplace account: Log in to your marketplace account (e.g., Amazon, eBay, or Etsy). Navigate to the payment settings and add Grey’s virtual USD account details as your payout method. Most marketplaces, including Amazon, eBay, Etsy, and Walmart, accept virtual USD accounts for payouts.
4. Receive payments: Once linked, payments from the marketplace will be deposited into your Grey USD account. Grey notifies you when funds arrive.
5. Convert and withdraw funds: You can hold USD in your Grey account or convert to KES at competitive exchange rates with minimal fees. Withdraw the funds to your Kenyan bank account or M-Pesa wallet.

Receiving USD payments with Grey

For Kenyan sellers looking to thrive on US marketplaces like Amazon, eBay, Etsy, and Walmart, Grey offers the most efficient, cost-effective, and user-friendly solution for receiving USD payments. Its seamless integration with major platforms, low fees, and fast withdrawals to Kenyan bank accounts or M-Pesa make the platform a top recommendation. By choosing Grey, Kenyan sellers can focus on growing their businesses while enjoying a streamlined payment process tailored to their needs.

Sign up with Grey today to receive USD payments seamlessly as you leverage US marketplaces.

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