First and foremost, we would like to thank every single customer in Australia and New Zealand for their support in getting VividQ started last year.
However, it comes with great sadness to announce that, for the time being, we will be closing our ANZ store for the foreseeable future. This is due to the simple fact that, if we continue, the business will lose money to the point of no return.
In simple terms, it all comes down to the $AUD to $USD conversion rate. As we source all of our stock from the US (and ship it direct from our supplier), we are charged in US dollars and the same goes for shipping. We walk a bridge that is constantly moving and cannot exactly predict the cost or revenue from a sale until we pay for the stock and the shipping labels.
For example, what used to cost $20AUD to ship to Australia is now costing us between $24-25AUD.
While $4-$5AUD may not seem like much, when you add in the extra cost of the garment (due to conversion), plus merchant fees of up to 6% depending on your payment method, we quickly lose money on the entire sale. This then has disastrous flow on effects to other areas of the business.
So what does this mean for you, our loyal customer?
Firstly, it will mean the shipping price tier limits will be increased. While we do our best to cover the majority of the cost of shipping to Australia and New Zealand - and worldwide in general - due to the Australian dollar conversion rate, VividQ has been losing money on entire sales to ANZ trying to keep this in place.
Secondly, you will still be able to see prices in Australian Dollars. All you need to do is click the settings button at the top of the page and select $ Australian Dollars. This will give you a current conversion between AUD from USD. Please keep in mind that what you see in your bank statements may differ slightly due to the "retail conversion rate". Also, when you checkout, you'll be checking out in USD, even though you chose Australian Dollars in the settings. This is a limitation of the platform we use.
Afterpay will also be affected for our ANZ customers. While we would LOVE to be able to offer this service on our Global store, there are limits to Afterpay Australia that requires our base currency to be in AUD - whereas the global store is set to use USD. We wish we could use more than one base currency, however this is not possible at the time of writing.
Now there is a chance that we will be getting Afterpay US in the future, but this will only be available to USA customers as Afterpay does not allow cross border transactions between the two countries - unlike Australia and New Zealand Afterpay that do.
We are truly and tremendously saddened that we have had to make this business decision, but there are plans in place to bring the ANZ store back, bigger and better than ever. We do hope you understand why we made this difficult decision and hope to continue to have you as a customer into the future.
Michael - Director/Owner of VividQ