Geotargeting & geolocation in Shopify: How to optimize your international shopping experience

Geotargeting and geolocation are powerful features that help Shopify merchants optimize their stores for an international audience. By identifying the geographic location of your customers, you can personalize the shopping experience by automatically displaying the appropriate currency, language, shipping options and even legal notices. This not only provides a better user experience, but can also increase your conversion rate and reduce cart abandonment.

On February 1, Shopify switched off its own geolocation app. In this blog, we explain how you can now use geotargeting and geolocation in Shopify, what advantages these technologies offer and which tools and apps support you in successfully serving your international markets.

What is geolocalization/geotargeting?

Geolocalization refers to the determination of a user's geographical location using various technical methods such as IP addresses, GPS data, WLAN networks or mobile phone masts. This technology is used in many areas, especially in e-commerce, to optimize the user experience. By recognizing a visitor's location, an online store can automatically display relevant content, including the appropriate currency, language settings, available shipping options and country-specific legal information. For example, a store that is active in both Germany and Switzerland could automatically change the currency from euros to Swiss francs and adjust shipping options accordingly without the user having to do this manually. Geolocalization can also automatically take into account data protection requirements, which vary from country to country, for example by only displaying certain cookie banners or legal notices to users from certain regions.

Geotargeting extends geolocalization by using location data specifically for personalized marketing measures. This is not just about showing users a localized version of a website or store, but also about providing targeted content and offers that are specifically relevant to their region. For example, companies use geotargeting to display location-based advertisements, offer country-specific discounts or special promotions or highlight products based on regional trends.

Advantages of geolocation and geotargeting:

• Personalized shopping experience: automatic customization of language, currency, payment methods and shipping options for a seamless shopping experience.

• Higher conversion rate: customers see prices in their currency and relevant products, reducing cart abandonment

• Better legal compliance: Adaptation of data protection regulations, taxes and shipping rules depending on the region.

• More efficient advertising campaigns: Ads, discounts and special promotions can be played out individually based on the user's location.

• More targeted remarketing: Users who have visited a certain region can be targeted again later with suitable ads.

• Optimized user experience: Automatic redirection to the correct domain or store version based on location.

• Optimized delivery options: Customers only see the shipping methods that are relevant to them, avoiding frustration.

Shopify Markets vs. geotargeting - the differences

Shopify Markets is an integrated feature of Shopify that allows merchants to manage multiple geographic markets within their store. With Shopify Markets, you can create different markets for different countries or regions, customizing specific settings for each region. This includes selecting the currency, localizing the language, setting prices and assigning specific domains. Adapting to local conditions in different markets helps to improve the customer experience and ensures that your store responds better to the needs of international customers.

Geotargeting is a complementary tool to Shopify Markets that provides visitors with a customized experience based on their geographic location. The tool recognizes a user's location and automatically directs them to the version of the store that is best suited to their country or region. This can mean, for example, that customers from France are redirected to the French version of the store, which is displayed in French and with prices in euros. Geotargeting helps to personalize the user experience and provide customers with the convenience of immediately seeing the content and products relevant to them without having to manually select their language or region.

Should you use both? Yes, together Shopify Markets and geotargeting enable seamless localization of online stores.Shopify Markets provides deeper market customization with local prices and currencies, while Geotargeting ensures that visitors are automatically directed to the store versions or content that are relevant to them.These two features work hand in hand to optimize international commerce, improve the customer experience and increase sales in different markets.

Geoblocking and GDPR: What you need to consider with geotargeting/geolocation

In Europe, there are a number of legal restrictions relating to geolocation and geotargeting, particularly with regard to geoblocking.

What is geo-blocking?

Geoblocking means that users are denied access to certain content or services based on their geographical location. This can be a challenge for online retailers and companies that want to target their offers to specific markets. The legal provisions are primarily shaped by the EU Regulation, which restricts certain geo-blocking practices.

EU regulation

The EU regulation came into force in 2018 and aims to prevent discriminatory practices based on geographical location. It prohibits companies from blocking access to goods and services based solely on the geographical location of users or changing access if there is no objective reason for doing so.

The most important points of this regulation are:

• No blanket geo-blocking: online traders may not restrict access to goods or services to certain countries if the user is based in another EU member state. For example, a retailer may not prevent a customer from Germany from accessing a French website and making a purchase there.

• Unjustified price differences: It is prohibited to arbitrarily change prices or delivery conditions based solely on the country from which a customer is accessing the service. So if a merchant offers lower pricing in one country, they may not simply charge higher prices to users from another country unless there is a factual justification (e.g. higher shipping costs).

• Payment methods: The regulation also stipulates that companies may not arbitrarily restrict the choice of payment methods simply because the customer comes from a certain country.

Exceptions to geo-blocking

There are exceptions where geo-blocking and different pricing may be permitted, such as:

• Digital content licenses: If a company offers content such as movies, music or software on a geo-based licensing, it may be permissible to use geo-blocking. For example, if a movie is licensed in one country but is not available in another.

• Taxes and duties: Price differences due to different tax rates in different countries are also permissible. A company can charge higher prices in one country if higher taxes or duties apply there.

• Product-specific exceptions: If products or services are geographically restricted, for example, due to national regulations or technical requirements, geo-blocking may still be permitted.

• Access restrictions due to national regulations: In some cases, geo-blocking may be required due to government regulations. For example, if a country restricts certain digital services or products (e.g. in relation to gambling, betting or alcohol), companies may be forced to block access to their offers for users from these countries.

• Data and telecommunications regulations: In some cases, geo-blocking may be necessary to comply with a country's data protection and telecommunications regulations. Countries may have specific regulations regarding access to certain data or telecommunications services that require geo-blocking.

Legal restrictions

Although geolocation and geotargeting are useful marketing and sales techniques, companies in Europe must consider the following legal requirements:

• Data protection: the General Data Protection Regulation (GDPR) regulates the handling of personal data, including users' geolocalized data. Companies may only use geolocation and geotargeting if they have a lawful basis for doing so (e.g. the user's consent). It must be clear that the user has been informed and has given their consent, especially if detailed location data is used.

• Equal treatment of EU citizens: Companies may not apply geographical restrictions within the EU that result in users from another EU member state being disadvantaged. However, there are certain exceptions, for example in the case of country-specific license agreements or digital content that is not available throughout Europe.

• Prohibition of geo-blocking: The EU regulation prohibits blanket geo-blocking and prohibits discriminating against users based on their geographical location, as described above. Companies that use geotargeting must ensure that their practices do not violate these regulations.

Geolocation apps for Shopify - our recommendations

Shopify Markets offers basic geolocation, such as for language and currency - but does not automatically redirect users or show region-specific content. Additional apps enable exactly that: automatic redirects, targeted content per country, better SEO control and a seamless user experience. Anyone who wants to sell professionally internationally benefits from significantly more flexibility.

Geolocation Orbe

The Shopify Geolocation - Orbe app enables online retailers to offer their customers a personalized shopping experience based on their geographical location. By integrating geolocation features, content such as language, currency and products can be automatically adapted to the user's region.

Benefits and features:

• Automatic redirection

• Integration with Shopify Markets and Global-e

• Improved user experience

• Easy customization

• Unified country selector

Pricing:

• Free plan

• Advanced Plan: $29/month

• Plus Plan: $49/month

Geolocation Redirects Geo:Pro

The Shopify app Geolocation Redirects Geo:Pro helps online retailers to adapt their store to the specific location of their customers. With the help of geolocation, products, prices, language and currency can be automatically optimized for each region so that customers receive an individually tailored shopping experience.

Advantages and functions:

• Automatic redirection

• Customizable redirect rules

• Various redirect options

• Integration with Shopify Markets

• Increase in global sales

• Improved user experience

Pricing:

• Free plan

• Tiny: $4.99/month

• Small: $7.99/month

Conclusion

Geolocalization and geotargeting are essential tools for online retailers who want to sell internationally.

While geolocalization automatically adapts content such as currency, language and shipping options to the user's location, geotargeting goes one step further and uses location data for personalized marketing and targeted advertising campaigns. Shopify Markets offers an integrated solution for managing international markets, while geotargeting tools ensure that customers are directed to the version of a store that is relevant to them. The combination of both technologies enables an optimized shopping experience, increases conversion rates and improves legal compliance.

With the shutdown of the Shopify Geolocation App, retailers are dependent on alternatives. Shopify Markets takes over many functions, but third-party apps can offer additional features such as targeted redirects or location-specific advertising. If you want to sell successfully internationally, you should therefore use both Shopify Markets and geotargeting tools strategically to best align your store with different markets and offer customers a smooth, personalized shopping experience worldwide.