- What is Shopify Markets?
- What Features Does Shopify Markets Have?
- Shopify Markets Dashboard
- Should I use Shopify Markets?
- Get Started With Shopify Markets
Following and using Shopify Markets from early access to its full-scale release has given us countless hours of experience with Shopify's solution to international eCommerce.
Simply put, Shopify Markets enables you to sell to consumers worldwide and makes complex issues around currency conversion, import taxes & duties, payment methods, and translations a breeze to deal with.
This is quite the list, as these points are what withheld many merchants from expanding their borders overseas, and an all-in-one solution like this almost sounds too good to be true!
Let's dive into this comprehensive look at Shopify Markets and all that it has to offer.
Click here to read our full Shopify 2022 Review
What is Shopify Markets?
The intricacies of cross-border trade are well known and equally dreaded amongst eCommerce merchants. Various regulations and compliance requirements make selling internationally hard enough, not to mention different currencies, duties and import taxes, domain name complexities, local translations, payment gateway preferences, shipping challenges, etc.
The list is long, but Shopify has made it their mission to alleviate as many of these pains as possible through their new Markets feature.
What Features Does Shopify Markets Have?
Shopify Markets offers a wide range of features to make selling to international customers easy as pie.
Boost Conversion Rates By Localizing Your Store
Conversion rate is the percentage of users or website visitors that proceed to make a purchase. Letting your users pay in a local currency is a huge conversion-rate booster, as it pre-emptively prepares customers for the amount they are going to be facing at checkout, whereas a new price calculated at checkout might scare them off.
Shopify estimates that stores that offer localized pricing can increase conversion rates by up to 40%.
Shopify Markets offers automatic currency conversion as a feature in more than 130 global currencies. The storefront prices in your shop are automatically updated and rounded based on the latest exchange rate, ensuring a 100% accurate, real-time price.
Not only does Markets' currency conversion apply on product pages, but the checkout process and the notifications and refunds process across the store are also shown in the local currency. This is a great feature that already takes out a lot of the nuisance of selling globally.
One metric we see many online stores still miss when expanding internationally is providing accurate local translations. This is something you should not ignore, as it has been reported by Shopify that 65% of more than 8000 global customers in 29 countries prefer to view content in their local language whilst shopping online.
Shopify Markets allows you to use third-party apps to translate your store content and copy. The language in your website will be converted automatically based on the customer's country API detected by Shopify. You also have the option to export your translations to edit them manually, but this feature is still being expanded upon.
The translation occurs across every page of your storefront, as well as in your checkout process – making a cohesive shopping experience possible in any localization.
Automatically Calculate Duty and Import Taxes
The last thing you want when ordering online is to find out you have to pay additional duties, taxes, and other fees to actually claim your package. This often results in refunds and chargebacks, as these additional costs were not made clear during the checkout process.
One of the biggest challenges for eCommerce stores in international markets right now is providing this information upfront & accurately before the shopper completes their purchase. Luckily Shopify Markets automatically compiles and updates this information in real-time and collects the duty and import taxes due at the checkout. By paying these fees upfront, customers will not be met with a shock and will avoid delivery issues when they collect their packages.
Diverse Payment Options
Another wildly overlooked aspect of international sales is having location-based payment options.
Your customers have payment method preferences that depend on their location. For example, in the United States, customers prefer using debit or credit cards to complete purchases, whereas, in the EU, third-party services like PayPal are preferred.
Shopify Markets leverages this by suggesting the most popular payment gateways for the region the customer is visiting from and lets you take a payment from site visitors using their payment provider of choice.
Dynamic International Domains
Shopify Markets gives you the power to create country or even region-specific domains easily. Using a region specific-domains for your store can boost your SEO and increase your organic reach by miles. It can also help to improve your online credibility and increase conversions likewise.
Let's say you want to open a market in New Zealand; then your store URL can be mystorefront.com/en-nz. The option of creating a subdomain also exists, for example, nz.mystorefront.com.
If a visitor navigates to the incorrect domain (outside their country), Shopify will automatically leverage their IP address to redirect them to the correct storefront based on their location.
Inventory information displayed according to fulfillment location
If your store has a fulfillment partner in another country that ships only to the US, Shopify Markets allows shoppers in that market only to see available inventory from that relevant partner.
This is quite useful, as managing international storehouses in several locations can be challenging. Shoppers can receive conflicting product availability details that will harm your store's conversions.
By utilizing this Markets feature, you avoid situations where an order is placed and cannot be shipped. Shopify Markets also automatically modifies your storefront inventory according to product availability in the relevant market.
International Pricing Configuration
As we mentioned before, Shopify Markets can automatically convert your storefront prices into the local currency – but sometimes, you may need to do more than simply convert your prices as is.
Let's set up a situation where you are utilizing two different marketing approaches, where your main market pricing strategy might differ from your secondary market strategy. In your main market, you have already established a dedicated customer base; thus, you are able to maximize your margins without needing to worry about conversion impacts. Then in your secondary market, Shopify allows you to apply either individual pricing changes to products or a blanket percentage discount to help attract new customers.
All of these pricing changes can be made directly from the Shopify Markets dashboard, giving you full control from one central location.
Shopify Markets Dashboard
All the aforementioned features are compiled and packaged into one convenient location, a dashboard that can be found under Market Settings on the Shopify backend. This is where you can control all your international domains, translations, payment gateways, etc.
This centralized dashboard provides a look at all of your stores operating in multiple locations with Shopify Markets, making managing and administration easy. The dashboard covers both domestic and international stores. The dashboard also provides tracking and analytics to help you observe performance in each market and adjust your strategies consequently.
When opening your Shopify Markets dashboard for the first time, you might feel a bit overwhelmed with all the options you have. Selling to a plethora of new markets will look quite daunting initially.
Shopify luckily helps you out; using their huge amounts of sale data & AI-powered insights, they can apply smart settings per market by monitoring your performance to make automatic optimizations to help you sell more internationally.
This setting helps identify how to most effectively sell in new markets and optimize your settings for that location specifically, without the need to hire a private consultant.
If you feel like you are in complete control, you can switch off smart settings within the dashboard too.
Shopify Markets Fees
Shopify does charge transaction fees for international selling under Shopify Markets. Here is a breakdown of how these fees are calculated:
• 0.85% fee per order when duty and import taxes are calculated with Shopify Payments; 1.5% fee when using an alternative payment provider.
• 1.5% fee per order when currency is converted.
• Fees for using local payment methods are included as part of Shopify Payments' international payment processing.
Should I use Shopify Markets?
The features we mentioned in this article are all part of Shopify's concentrated push to let their platform be the king of cross-border commerce. Shopify is taking international eCommerce exceptionally seriously, and it is a very exciting growth opportunity for the platform. This is not even the final iteration of the project; the roadmap for future features includes:
Some features that are currently in the pipeline include:
- Unique content for consumers in specific markets
- Catering for different buyer preferences, e.g. seasonal/occasions, and regulations with customized product catalogs
- Payouts consisting of different currencies will soon be routed to other bank accounts according to your business's needs.
If your store is already running on Shopify, there's no reason not to use Shopify Markets to your advantage. If you are currently operating on another eCommerce platform and you are looking to sell internationally, we strongly recommend switching to Shopify for Markets alone! Combine using Markets with your B2C or B2B (or hybrid!) Shopify store for an unstoppable expansion.
Get Started With Shopify Markets
With Shopify Markets, it's never been easier to sell to international customers. If you've been using Shopify Markets, we would love to hear your thoughts so far!
Shopify Markets is now available for any store with a Shopify subscription. If you need any help in starting your global business, simply contact us; our team is more than happy to help!