How to Shop and Ship Internationally While the Dollar Is Strong
If you like to shop online from international stores, your dollar can now buy you a lot more. The U.S. dollar is currently at its highest compared to major currencies like the euro, the British pound, the Japanese yen, and the Chinese yuan. It is the strongest it has been in two decades, which is good news for Americans or anyone else shopping in U.S. dollars when buying goods abroad.
Even if you’ve never used a parcel forwarding service to shop from international websites, now would be a great time to do it as the strong dollar is giving you more buying power. You can shop all sorts of goods from online stores in the UK, Germany and EU, and even Japan and, using a free shipping address, have them conveniently delivered to your doorstep. If you’re not sure what’s worth buying while the dollar is strong, read on for our suggestions.
What Is a Strong Dollar?
The term “strong dollar” means that the U.S. dollar has more value compared to other major currencies. Since its May 2021 low, the dollar has marked a sharp rise, with a 14% gain against a number of currencies even as fears of recession continue to grow and the economy shows signs of slowing. At its current peak, it is the strongest it has been in two decades. In 2022, the dollar has surged by 15% against the yen, 10% against the British pound, and 5% against the yuan.
What does this mean for consumers? When the dollar is strong, imported goods in America become more affordable, and so do trips abroad, with expenses such as hotel accommodation, dining, and shopping for souvenirs becoming much cheaper. However, there is no need to visit a particular country to take advantage of the extra buying power; you can purchase goods from international stores even ones that only ship locally and use parcel forwarding for an international delivery.
The dollar against the euro
In August 2022, the euro briefly dipped below parity with the dollar for the first time in twenty years. Earlier this month, it traded at a low of 0.9903 against the U.S. dollar, and experts have made predictions that the currency will continue to sink. Multiple factors are at play for the two-decade low of the euro compared to the dollar, including the conflict in Ukraine, concerns about supply of Russian gas, as well as the surging inflation across both Europe and America.
The dollar against the British pound
Over the past week, the British pound has been hovering at its lowest levels since the start of the Covid-19 pandemic and the USD/GBP chart is looking rough, with some experts even predicting a move to and possibly below parity. The British pound is also predicted to reach a historical low against the dollar in the third quarter of 2022 as the UK energy and gas crisis is expected to worsen.
The dollar against the yen
In June 2022, the Japanese yen slid to a 24-year low against the U.S. dollar, further extending losses that had caused its value to drop more than 18% against the U.S. currency. On August 1, the dollar reached its lowest level against the Japanese yen since its June peak. However, the third week of August was the best for a resurgent dollar that jumped almost 3% against the yen.
The dollar against the Turkish lira
On August 19, the Turkish lira slid towards an all-time low against the U.S. dollar as it weakened by as much as 1% after Turkey’s central bank decided to lower its benchmark interest rate. On Friday, August 26, the lira traded at 18.1772, increasing 0.0009 or 0% since the previous trading session. Looking back, the dollar’s value against the lira has risen by 117.86% over the last 12 months. The lira is expected to trade at 19.10 by the end of 2022’s third quarter.
is the strong dollar here to stay?
The strong dollar is considered a “safe haven” during turbulent times by investors. The value of the U.S. currency tends to soar during both periods of strength or instability for the American economy. Whether the economy is strong or weak, to investors the dollar is a way to secure growth or to store cash until the situation resolves.
With most commodities traded in dollars and about 40% of all global financial transactions processed in dollars, importers need to hold dollars to be able to purchase while exporters hold funds in short-term U.S. Treasury securities, with the U.S. Treasury providing a steady medium for global economic activities.
Industry experts have forecast that the dollar will continue to be the dominant currency in the global economy. Dollars are still in demand for global financial transactions even amid concerns about budget deficits and a swelling U.S. trade simply because there aren’t many other currencies that can cater to the needs of global trade.
After eight years of negative interest rates, the euro has lost its appeal despite still playing a large role in financial transactions, and, although the Chinese yuan has been on the path to becoming a global currency, capital controls mean it’s not freely convertible.
Considering the impact of the conflict in Ukraine and China's shutdowns, the United States still looks better positioned to weather a global economic slowdown despite recent weak GDP growth.
What to buy with a Strong Dollar
Designer fashion
Whether you’re giving your wardrobe a complete overhaul or just adding a few new pieces, now is the time to make some great savings. Fashion industry experts recommend researching where your favorite designers are based and shopping from their local stores. By purchasing high-end brands from the countries where they are made rather than in the United States, you can get better deals and limited offerings.
| Brand | Item | US Price | UK Price | EU Price |
|---|---|---|---|---|
|
Quilted leather small Lola bag |
$2,090 |
£1,490 ($1,740) |
€1,650 ($1,650) |
|
| Gucci Attache large shoulder bag |
$2,980 |
£2,030 ($2,370) |
€2,300 ($2,298) |
With the strong dollar and rebates for the value-added tax, you can expect to make some substantial savings when buying items like designer bags and accessories by buying on the European or Asian version of the site.
For example, you could be saving about $600 on a Gucci bag when ordering from the German or UK version of the website. Or, how about almost $500 on a classic heritage Burberry trench coat and $270 on a pair of Dior jeans? It really is that simple to make fabulous savings on designer fashion and bags.
| Brand | Item | US Price | UK Price | EU Price |
|---|---|---|---|---|
| Men’s Heritage Jeans |
$1,250 |
£880 ($1,207) |
€980 ($980) |
|
| Women’s Short Kensington Heritage Trench Coat |
$2,490 |
£1,790 ($2,090) |
€1,990 ($1,988) |
One of the perks of shopping at international online stores without the limitations of shipping is discovering local designers, as well as items from big designers’ lines that aren’t available in the United States. You’ll have access to styles that you can’t find on the U.S. market and be able to stand out with a look that's truly unique to you.
We suggest you check out our guides to the best Japanese clothing brands and the top fashion retailers in the UK; and if you make clothes yourself, whether for you or you have started your own house, you need to see the best websites selling authentic German fabrics and textiles.
Let's not forget about accessories; they are essential in completing an outfit, and fashionistas will be swooning over the deals that can be made on designer sunglasses, scarves, hats, belts, and everything else needed to perfectly complement a look.
|
Brand |
Item |
US Price |
UK Price |
EU Price |
|---|---|---|---|---|
|
Red Carpet Sunglasses |
$2,890 |
£1,950 ($2,279) |
€2100 (2,100) |
|
|
Lanternes, Ballons et Cocardes scarf 90 |
$480 |
£370 ($432) |
€410 (410) |
Children's toys
If you’re a parent, you might want to start early on this year’s Christmas shopping. Children’s toys that are imported from China will face new tariffs but now with the strong dollar, you can shop not only for better deals but also for exclusive products from Asian and European websites.
Make sure you read our guide to the Disney Store Japan where you can purchase exclusive Japanese Disney products you won’t find anywhere else and limited edition items for Halloween and Christmas. You might also discover the perfect gift for your kids (or for yourself) in the Lego Exclusives UK shop where you will discover limited Harry Potter or Star Wars sets and many rare and hard to find sets.
But we all know toys are not only for kids so if you’ve been building a collection, now is a great time to shop for some cool new additions. For unique Funko POP! figurines, browse our selection of the best places to buy Funko POP! in the UK or check out a list of places that sell Disney toys and collectables.
Smart tech
Is it time to upgrade your smartphone or smartwatch? It’s better that you do it now than delaying it for next year. According to estimates by J.P. Morgan, the new tariffs on products manufactured in China that will become effective as of December 15 could incur a 20% price increase for an iPhone XS.
With the extra buying power of the strong dollar, you can not only avoid those expected price increases but you can make additional savings by shopping for smartphones, smartwatches, and other smart devices at the European version of electronics websites. Check the German, French, Swiss, or UK versions of websites like Amazon and Apple for extra savings.
Shoes
So, here’s something interesting – the Footwear Distributors and Retailers of America (FDRA) has published data showing that imports supply between 95% and 99% of the U.S. footwear market. While the strong dollar should make imported goods more affordable, the prices of imported goods are typically more susceptible to the volatility of the dollar. In addition, with China importing around 60 – 75% of the shoes bought in America, there’s a great chance that the upcoming tariffs could hurt some of the most popular brands like Nike or New Balance next year.
Now may be the right time to treat yourself to a new pair of your favorite sneakers or just shop for comfy kicks to get the kids through the school year. Or why not treat yourself to that pair of Louboutin’s when you can get them for $170 less? Remember that Oran Sandal from Hermes that was all influencers were boasting? You could get a great deal on those, too, by shopping on the EU site.
| Brand | Item | US Price | UK Price | EU Price |
|---|---|---|---|---|
| Hot Chick 100 mm patent |
$775 |
£550 ($643) |
€595 ($595) |
|
| Oran Sandal |
$660 |
£510 ($596) |
€510 ($510) |
Jewelry, art & home décor
If you’re traveling abroad, you might want to take home some special souvenirs to remind you of the lovely holiday. And, with the dollar being strong against a broad basket of currencies, analysts are suggesting that now you may not want to hold back. But, with parcel forwarding, you don’t have to visit a particular country to own a unique piece of jewelry.
Being able to shop from major shopping destinations like France, the UK, Turkey, Japan, and more countries, you can explore a variety of materials and styles that aren’t widely available in the United States to find that one special piece. One gem worth splurging on is sapphire, especially in colors other than blue.
| Brand | Item | US Price | UK Price | EU Price |
|---|---|---|---|---|
| Happy Hearts bangle - ethical rose gold, diamond, mother of pearl |
$3,150 |
£2,620 ($3,059) |
€3,050 ($3,050) |
|
| Harnais table lamp |
$8,900 |
£6,920 ($8,088) |
€7,100 ($7,100) |
The dollar’s increased value against a broad basket of currencies and the euro parity make it a good time to shop for goods from discretionary category such as fine jewelry and art and décor pieces. Paintings by local artists, one-of-a-kind conversation-starter souvenirs, or statement décor items – splurging won’t feel bad when you know you’ve saved almost $2,000 on the designer lamp you’ve always wanted.
Is it difficult to shop online from abroad?
forward2me’s international shipping service is designed to help you make the most of your shopping online without limitations to location. By getting a free shipping address, you are able to buy all sorts of goods from the world’s premium shopping locations and you also get to benefit from our additional services such as Combine & Repack which saves you money when shipping multiple packages or our bespoke large item shipping tailored to your needs for large item shipping.
Top online stores to shop at
With a free shipping address from forward2me, you can shop at a number of online shops in the UK, Germany, Turkey, and Japan. If you’re not sure where exactly to shop, head on over to our shopping center where you will find guides to the most popular shops in the countries as well as useful advice on shopping and shipping internationally.