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Guide to Shopify Markets

Guide to Shopify Markets - Expanding Your Business Globally

Shopify Markets

January 9, 2024Author: Lachezar Shoykov10 min read
Shopify Markets -  Sell Internationally with Shopify & Shopify plus

Selling across borders has never been more important than in today’s global economy. Expanding your business internationally isn’t just an opportunity but a necessity to sustain your business growth.

With Shopify Markets this is easier than ever. Shopify Markets equips your business with all the tools it needs to sell, manage, and deliver products to any point on Earth.

In this article, we’ll talk about Shopify Market’s pricing, features, and the opportunities it brings to your e-commerce business.

Understanding Shopify Markets

Shopify Markets -  Sell Internationally with Shopify & Shopify plus Understand Shopify Markets

Source: Shopify

Shopify Markets is Shopify’s way of simplifying the international sales process.

In the past, selling to new regions involved greater risk, operational and technical complexity, and extra resources to convert foreigners into buyers. Today, Shopify Markets centralizes all the tools you need to sell internationally in one platform.

With a few clicks, you can create customized shopping experiences for different segments of your customers simultaneously.

You can tailor your store’s language, prices, products, currencies, and more to match your target country.

Moreover, Shopify Markets helps you simplify and control your e-commerce operations like:

  • Order Management

  • Inventory Management

  • Fulfillment

  • Package tracking

  • Taking care of taxes and duties

Overall, Shopify Markets is a one-stop-shop for enabling you to sell at scale internationally.

Shopify Markets Localization Essentials

With Shopify Markets you can leverage geolocation tracking and adapt your store to the country or region of your visitor.

This way your store stays locally, culturally, and seasonally relevant and maximizes your conversion rates.

Shopify Markets enables you to go beyond mere language translation. Instead, the local versions of your store can have different content, products, prices, currencies, shipping rates, payment gateways, and more.

Tweak your store’s international versions to provide a frictionless shopping experience for all of your customers, regardless of their location.

This way, you can maximize your store’s conversions and average order value.

You can also set separate product prices for each of your target markets through your Shopify admin.

Shopify Markets helps you tailor a pricing strategy that fits your target markets.

You can make prices vary to fit each market, or you can make them fixed for some or all of your products and their variants.

Shopify Local Currencies

Shopify Markets, in combination with Shopify Payments, allows you to automatically convert your storefront, checkout, notifications, and refund prices to over 130 international currencies.

These conversions are based on the latest foreign exchange rates and rounded up in your store for a smooth shopping experience.

Local currencies are crucial for the shopping experience of your international customers.

According to a study by Shopify, product prices in local currencies increased conversion rates by up to 40%!

With Shopify Markets, you can provide your international customers with a smooth multicurrency experience from storefront to checkout.

Shopify Language Translation

Translating your store to the language of your target customers is of paramount importance for your shop’s success.

This is especially helpful for markets like Europe, where there are a lot of developed countries with different languages.

According to a survey from 29 countries, 65% of shoppers prefer content in their language, while 40% won’t even consider purchasing from a website they can’t read.

Moreover, Shopify claims they saw a 13% increase in conversions when buyers were shown the same store in their language, as opposed to the default language.

Shopify’s free Translate & Adapt app works great in combination with Shopify Markets.

It allows you to auto-translate your store in two languages, and manually add or edit as many language translations as you wish.

Overall, Shopify Markets enables you to provide consistently positive shopping experiences to your international customers in their primary language.

Adapting Your Store to New Markets

Equipping your store to conquer international markets involves a few technical aspects as well. Custom domains and local payment method integrations help you go a long way in reaching shoppers organically and making the payment process as frictionless as possible.

Shopify Domain Customization

Shopify Markets -  Sell Internationally with Shopify & Shopify plus - Domain Customizations

Source: Shopify

Shopify Markets makes setting up international domains a breeze.

Shopify Markets automatically creates top-level domains, subdomains, and subfolders when you create a new market and sets the right SEO tags, so your store appears correctly in Google’s search results.

Having an international domain or subdomain that is tailored to your target country or region is important because it boosts your visibility in search engines and can improve your website’s speed and accessibility.

For example, you can set your store to have multiple versions such as en.yourstore.com or de.yourstore.com, etc. for each country that your store shows up.

You can set them to yourstore.com/en to specify this is the English version of your site or even to yourstore.co.uk to show this is the local UK version of your site.

Shopify Local Payment Methods

Shopify Markets helps you offer local payment methods that your customers know and trust. The right payment method can have a big impact on the buying decision.

That’s why having diverse payment methods available can be a conversion game-changer.

Moreover, setting up and optimizing payment methods with Shopify Markets helps you revolutionize the checkout experience.

Creating amazing shopping experiences is easy when working with a Shopify agency like craftberry.

Shopify Markets Tax and Duties

Import taxes and duties are the hidden pitfalls of international e-commerce. When unclear and unaddressed, they can result in frustrations for your customers, parcel refusals, and chargebacks.

For example, a US merchant shipping products to the UK would likely have to pay the standard 20% VAT and possibly between 8-12% as an extra import tariff. However, these values greatly depend on the category of your product, as well as its price, and the time of year when you’re shipping them.

Typically, your product will be held at the local country’s customs and your customer might face extra charges or have to lose time for pickup and to deal with the customs bureaucracy. These challenges greatly increase the odds of parcel refusal.

If you're looking to simplify your international sales process and minimize these hurdles, see Migration to Shopify.

Shopify Markets provides you with an elegant solution to the Tax and Duties problem, called DDP.

Instead of leaving your customers to pay their duties and taxes, you employ DDP (delivered duty paid) shipping terms.

This means that the merchant takes care of all the costs, which greatly reduces friction for the customers.

Not employing DDP is one of the biggest mistakes for international retailers, as unexpected fees, delays, and import tariffs for your customers will drive your successful deliveries into the ground.

With Shopify Markets all of the duties and taxes for your products are automatically calculated and collected at checkout. This provides your customers with complete clarity about costs and removes most of the shipment friction.

To improve your checkout experience in 2024, see Checkout.liquid to Extensibility Checkout Migration

Shopify Markets Optimization Strategies

Shopify Markets gives merchants great flexibility to optimize and tailor their offerings to each target market. Merchants can do this either by changing the products they offer or by changing the price at which they sell. 

The pricing strategy that’s best for you depends on a lot of factors. These include multiple supply and demand factors, as well as your product quality, brand recognizability, competitors, and more. Here’s a pricing strategy refresher by Shopify.

Custom Pricing by Market

Shopify Markets -  Sell Internationally with Shopify & Shopify plus custom pricing

Source: Shopify

Selling internationally often requires a flexible pricing strategy.

It’s common that what works best in your primary market won’t be optimal for every other market you want to expand to.

This can be due to a difference in customer purchase power, the presence of local competitors, or something else.

With Shopify Markets you can take complete control over your international prices.

You can leverage geolocation tracking or localized subdomains to set percentage-based price adjustments to account for increased shipping costs.

You can also set a custom fixed price for each specific market if you want to follow a special pricing strategy.

Custom Product Visibility by Market

Apart from prices, you can customize your entire product offering for each specific country or region.

You may want to make a certain product exclusive to a specific market, or you may include or exclude a market due to regional regulations or licensing agreements.

You could also offer different packaging in different markets to better align with buyer preferences.

Shopify Markets helps you take control of your product offerings and sell the right products to the right audience at the right price.

With these features, Shopify Markets enables you to pursue any international merchandising strategy you see fit.

Order Management Rules by Market

Managing and fulfilling orders is a crucial part of your international e-commerce operations. Shopify Markets equips you with the tools you need to smoothly manage your inventory and order fulfillment across borders.

Order fulfillment by country

With Shopify Markets you’re able to completely control your international shipments.

Opportunities with Shopify Markets:

  • You can select localized fulfillment centers to drive down costs and transit time to shoppers.

  • You can set specific shipment rules for products of varying size, weight, perishability, or fragility.

  • You may also set different delivery times, shipping rates, localized return policies, etc.

Overall, Shopify Markets has all the features you need to tweak your shipments and ensure your products successfully reach the right destination with the least amount of cost and the maximum number of happy customers.

Product inventory by country

Managing your product inventory is crucial for your international e-commerce success. Shopify Markets allows you to keep tabs on your stocks and storage in real-time across your fulfillment centers.

You can allocate specific products or quantities to be sold in certain countries based on regional demand. You can control which products are available in which markets to accommodate local regulations or preferences.

To manage your inventory storage, tracking, and fulfillment, you can use Shopify Locations. Through it, you can set up locations relevant to your business such as retail stores, warehouses, popups, or any other place where you manage or stock inventory and track and manage all of your inventory numbers in real-time.

Shopify Markets Pricing Plans

There are two ways you can get started with Shopify Markets. There is the more basic Markets plan and the more advanced Markets Pro plan.

Both plans employ a pay-as-you-sell payment method, so there are no upfront costs involved, apart from your Shopify plan.

However, this method makes it more difficult to calculate what you’re actually paying.

Moreover, your bottom line varies depending on your Shopify plan and if you use Shopify Payments.

Deciding which plan is right for you depends on the scale of your business.

Moreover, small businesses won’t be able to feel the full impact of the pro features.

Whereas larger organizations would be limited by the comparative lack of customization options of Shopify Markets.

Here’s a full features comparison of Markets and Markets Pro.

Markets Pricing

3.9% average blended rate per transaction

The exact fee you pay for Shopify Markets depends on multiple factors:

  1. Do you use Shopify Payments or a third-party payment gateway provider?
  2. What Shopify plan do you use?

Using Shopify payments and subscribing to Shopify’s more advanced plans gives you access to lower service fees for Shopify Markets.

0.85% per transaction for Duties and Import Taxes
For orders where duties and import taxes are calculated using Shopify Payments, a fee of 0.85% is applicable.

However, if alternative payment providers are used, this fee increases to 1.5%.

This option is exclusively available to merchants on the Advanced and Plus plans of Shopify.
1.5% per transaction (paid by the customer)
A 1.5% currency conversion fee is automatically included in your product prices, helping to cover your costs (this applies only to default pricing, not to fixed cost price lists).

This fee, reflected in your payout statement, is borne by customers, offering them clear pricing at checkout and avoiding additional credit card exchange charges.
6.25% total fee per transaction
All features included

Markets Pro Pricing

6.5% per transaction fee
  • Exclusive express and standard shipping rates
  • Guaranteed duties and import taxes calculation
  • Automatic duties collection and remittance
  • Tax registration, filing, and remittance (including VAT and IOSS)
  • Express shipping 1-5 days worldwide
  • Guaranteed exchange rates
  • Restrictions management
  • Unlimited HS code classification
  • Local payment methods
  • Customs pre-clearance
  • Local payment acquiring
  • Fraud and chargeback protection
  • Automatic activation of 150+ markets
2.5% per transaction (paid by the customer)
A 2.5% currency conversion fee is automatically integrated into your product prices to compensate for your costs (applicable only with default pricing, not for fixed cost price lists).

This fee, charged to customers, ensures transparent pricing at checkout, preventing additional credit card exchange fees. The 2.5% fee will be reflected in your payout statement.
9% total fee per transaction
All features included

Shopify Markets Conclusion

Shopify Markets offers a streamlined solution for businesses aiming to tap into the global market.

It simplifies international selling with features like language translation, currency conversion, and localized product offerings.

The platform efficiently handles complexities such as tax and duty calculations and international shipping, making global expansion more accessible than ever.

To ensure your storefront resonates with international audiences, see our Custom Theme Development services.

One caveat of Shopify Markets is that you can only use it if you are using Shopify Payments, the in-house payment processor of Shopify.

Shopify Payments is undoubtedly an internationally competitive gateway and greatly streamlines your multi-market store’s sales. However, it’s only available in a number of countries.

For businesses needing advanced features, Shopify Markets Pro provides a comprehensive suite, including exclusive shipping rates and enhanced tax management.

The choice between Shopify Markets and Markets Pro depends on your business size and specific needs: Markets is ideal for those starting to explore international sales, while Markets Pro suits larger businesses with extensive international operations.

Shopify Markets Pro is only available to merchants based in the continental United States.

Whichever solution you choose, our Shopify agency can help you develop, design, and deploy your online store into any international market.

See also: What is a Shopify Partner

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Lacho Shoykov - Shopify Markets -  writer
Lacho Shoykov

Lacho is a Senior Content Writer at craftberry. With over six years of writing experience, he is proficient at creating long-form educational content that positions e-commerce and SaaS brands as industry thought leaders.

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