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Using Currency Differences to Get Great Money Savings

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This article will show you how to use the exchange rates and package forwarding to score great deals online.

Sometimes, not always, the cost of buying electronic goods from the USA or Europe is cheaper than getting it from your country of residence. That is because those countries sometimes have better trading deals with the manufacturers of the devices.


For this example we will use the  XBox 360 Elite and the Sony 120Gb Playstation 3 game consoles. The local country and currency is South Africa (ZAR) and the international country and currency is the USA (USD). The exchange is 7.23 ZAR = 1 USD at the time of writing.

This is what you need to do:

1. Find what you are looking for at the price you want. A lot of the USA suppliers don't ship to other countries but offer free shipping within the USA borders. So what you have to do is get a package forwarding service in the USA that will act as your USA address and send the item to you for often cheaper rates than the original online store would.

2. At the time of writing this article these were the prices of the XBox 360 Elite and the Sony 120Gb Playstation 3 (prices may have changed by the time you view these links) You can click on the items to go through to their product pages from the distributor :

International Distributor:
Xbox 360 Elite from Amazon.com : Cost :299.00 USD = 2,165.98 ZAR
Sony 120Gb Playstation 3 from Amazon.com : Cost: 289.00 USD = 2,090.57 ZAR

Local online Distributor:
Xbox 360 Elite from Kalahari.net : Cost: 3399.95 ZAR = 470.093 USD
Sony 80 Gb Playstation 3 from Kalahari.net : Cost: 4199.95 ZAR = 579.987 USD  (the 120Gb was out of stock so we will use the 80Gb instead)

3. Getting the goods safely to your doorstep.

You will need to buy your products using a credit card in most cases. You could use a service like PayPalPayPal will accept South African credit cards.

My US - Package forwarding Standard membership (once off purchase) : 10 USD = 72.2414 ZAR

My US Shipping based on 7kg weight: 157.97 USD = 1,142.80 ZAR


4. So, after adding up all the bits and pieces this is what we get to.

The xbox will cost a total of: 3381.02 ZAR from Amazon including package forwarding costs from MyUS. Thats a saving of 18,93 ZAR (not much of a saving for the effort but a saving non the less.

The Sony Playstation 3 will cost a total of : 3304,81 ZAR from Amazon including package forwarding costs from MyUS. Thats a saving of 895,14 ZAR (and you get a bigger harddrive in the unit, 120GB instead of the 80Gb offered by the local retailer)

I hope you find this article useful and save loads of money online.

Just a note on safety. Always make sure that the page where you are entering your actual credit card details has https:// at the begining of the website address instead of the regular http://
The 'https' indicates a secure site.

Good luck and go find those savings!

 

Last Updated on Friday, 08 October 2010 03:54

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