As a Shopify merchant, you are probably already familiar with Shopify Markets and know that you can easily sell to multiple countries from one store. With the Managed Markets extension suite (formerly Shopify Markets Pro), you can comply with international regulations more easily and access over 150 markets without any additional effort.
We explain the other advantages and functions in this article. We also show you exactly how the tool differs from Shopify Markets.actly how the tool differs from Shopify Markets.
Note: Managed Markets is currently available to merchants in the United States regardless of their Shopify plan. Additional regions will be added incrementally as permissions are expanded. Merchants must first request an upgrade in their Shopify admin to use Managed Markets. Approval may depend on which product types are offered in your shop.
Table of contents
As an experienced Shopify Plus agency, we are the right contact for you if you want to push the internationalization of your company. We are happy to assist you with advice and support - contact us!
What is Shopify Markets?
Before we take a closer look at the comprehensive American feature Managed Markets, we would like to summarise the functions of Shopify Markets, as these may be of particular interest to merchants in the DACH region.
The tool was developed to simplify Shopify internationalization. With just a few clicks, you can enter one or more new markets and localize your individual stores within your admin area. After all, each country has its own specifics such as currency, local language, preferred payment method or holidays. It is also very easy to manage markets this way.
Reading tip: We explain when international sales with Shopify are worthwhile for you and how to implement them in the blog post.
Advantages of Shopify Markets
Shopify Markets offers a variety of benefits that make it easier for merchants to expand internationally and manage their markets efficiently. Here are some of the key benefits:
Centralised management: easy management of multiple international markets from one central dashboard. No need for separate stores for different countries.
Automated currency conversion: Automatically adjust product prices to the customer's local currency and real-time exchange rates to ensure accurate pricing.
Localised shopping experiences: Adapts the shop to the customer's language and currency. Offers local payment methods to increase conversion rates.
Tax and customs management: Automatic calculation of taxes and customs duties for international orders. Support for compliance with tax and customs regulations in different countries.
Standardised processing: Management of B2B, cross-border, online shop and POS activities in one admin area. Consolidation of all expansion activities on one platform.
Easier market launch: Quick and easy market launch in new countries. In addition, reduced complexity in international expansion.
Optimised shipping options: Improved international shipping options and rates as well as integration with global shipping service providers for seamless deliveries.
Data and analyses: Access to comprehensive data and analyses to monitor performance in various markets. Insights into customer behaviour and market trends.
Scalability: Scalable solution for businesses of all sizes and support for growth and expansion into new markets.
Customer support: Access to Shopify's global support network and assistance in solving problems and optimising international business.
Updates to the Shopify Summer Editions 2024
With the Shopify Summer Editions 24, Shopify has introduced new updates for Shopify Markets. All new features at a glance:
Centralised expansion platform: Shopify Markets serves as a central platform for business expansion.
Unified admin area: Integration of all expansion activities in a single interface in the Shopify admin area.
Availability: New interface will be available to all Shopify customers in the coming months.
Activity integration: Consolidation of B2B, cross-border, online shop and POS activities.
Unified view: No need for different stores or workflows.
Advanced management options: Improved tools and features for more efficient store management.
Shopify Managed Markets: What is it?
Managed markets, formerly Shopify Markets Pro, extends the features of the multinational management tools offered by Shopify Markets, so you can further expand as well as optimize your stores to easily sell internationally. Let's take a look at the key features.
Domains and language
With Shopify Markets and Managed Markets, you adapt your store domain to each marketplace and automatically redirect your users to their local listings. You can also use the Shopify Translate & Adapt app to translate your store's content into multiple languages and adapt it to the cultural differences of each market. This increases conversion rates and improves your SEO.
Reading tip: Conversions determine success and failure in e-commerce. In this blog post, we show you how you can optimize the conversion rate.
Currency
Like Shopify Multi-Currency, Managed Markets allows you to sell products in your customers' local currency and include or exclude taxes based on their country of origin - giving your customers a seamless international shopping experience. With Managed Markets, you get a guaranteed exchange rate, so you don't have to worry about currency fluctuations on refunds. As with Shopify Markets, merchants using Managed Markets can set prices per marketplace to manage their margins. What will be new, however, is that they can also set the availability of certain products for each market.
Customs duties and import tax
At checkout, Managed Markets provides your customers with a guaranteed calculation before any applicable duties and import taxes are added to the total cost. This means your buyers will no longer experience any tax surprises. What's more, your clientele can pay using local, country-specific payment methods. Then, Shopify takes care of the taxes, duties, and idiosyncrasies associated with global shipping and individual jurisdictions.
Reading tip: Learn how Shopify Plus merchants will use apps to customize their checkout in the future with the new Shopify Checkout Extensibility.
Shipping
Shopify Managed Markets offers 3 shipping and delivery options that best suit your business. Here's how you can
... purchase or print DHL Express shipping labels in your Shopify admin area.
... fulfill your order through a 3PL partner listed in the Shopify provided list.
... integrate your current warehouse with Global-E via the shipping API and have your international orders processed directly by the platform.
The best part is that all of these Shopify features are available right in your Shopify admin.
Requirements for using Shopify Managed Markets
In order for your business to use Managed Markets, the following requirements must be met:
Your business must be based in the continental U.S., excluding territories such as Puerto Rico and Guam.
You must be using Shopify Payments.
Your products must meet the specifications for prohibited or restricted items.
Your products must meet Managed Markets's shipping criteria.
Reading tip: The 15 best apps for Shopify in the Shopify App Store to help you master taxes, cookies, product data and more with your ecommerce business.
Shopify Markets and Shopify Managed Markets in direct comparison
Below we compare the two tools to highlight the main features and differences.
Fees for international orders
| Shopify Markets | Shopify Managed Markets |
|---|---|
| When converting currency: 2% fee per order. | Transaction fee: 6.5 |
| When calculating taxes and duties with Shopify Payments: 0.85% per order | Currency conversion fee: 2.5 % (paid by the customer) |
| When using other payment methods: 1.5% fee (may vary for local payment methods) |
Cross-country payments
| Shopify Markets | Shopify Managed Markets |
|---|---|
| Local country currencies through Shopify Payments | 136 different national currencies available Payouts in your own currency Greater choice of local payment options For international sales, you can use Shopify Markets Pro instead of Shopify Payments Fraud coverage Fast chargebacks (to protect against currency fluctuations) |
| Local payment methods through Stripe (a selection) | Payouts in your own currency |
| Greater choice of local payment options | |
| For international sales, you can use Shopify Managed Markets instead of Shopify Payments | |
| Fraud coverage | |
| Fast chargebacks (to protect against currency fluctuations) |
Reading tip: We introduce Shopify Payments and all the other payment options Shopify merchants can offer their customers.
Global fulfillment and shipping
| Shopify Markets | Shopify Managed Markets |
|---|---|
| Discounted Shopify shipping labels with no customs fees | Discounted DHL express shipping labels |
| Third party shipping labels app | International orders possible natively via Shopify admin area or via third-party fulfillment partners |
Note: Additional fees may apply for the use of an external fulfilment service. Check directly with your fulfilment service to ensure whether these fees are charged.
Customs duties and taxes
| Shopify Markets | Shopify Managed Markets |
|---|---|
| An estimate and collection of customs duties and import taxes may be offered at checkout | Customs fees and taxes are automatically calculated and collected at checkout |
| Does not support Delivered Duty Paid (DDP) | DDP shipping can be offered with DHL Express at checkout |
| Prices are calculated including taxes if this is set as default | |
| If taxes and customs fees of your goods need to be adjusted after customs clearance, Managed Markets will cover these additional costs |
Reading tip: Learn how to use Tax Exempt Manager 2 (TEM2) to implement VAT exemption for B2B customers in your Shopify store.
Localization
Both Shopify Markets and Shopify Managed Markets can:
Localized, international domains can be used.
Guide customers to regional domains.
Provide language and country recommendations to shoppers (based on location and browser language).
Stores can be translated into other languages.
Market processes
With Shopify Markets as well as with Shopify Managed Markets:
Manage multiple markets from one admin area.
Add individual pricing by market.
Shopify Managed Markets: The advantages at a glance
Now that we know the more technical advantages of Managed Markets, let's conclude by summarizing the concrete opportunities for you as a trader.
1. Compliance with international taxes and duties
Complying with international taxes, duties and restrictions is not that easy. Shopify Managed Markets automatically displays applicable taxes and duties in the checkout. If there are subsequent adjustments, the tool takes over the added costs.
2. Protection against foreign exchange and fraud
Fraud and currency fluctuations are also challenges that international merchants face. With Shopify Managed Markets, you are protected against card fraud and chargebacks and receive an exchange rate guarantee.
3. Faster and cheaper shipping labels
Negotiating favorable international shipping rates is difficult. With Managed Markets, managing customs documents and obtaining shipping labels is made much easier for you.
4. Great customer experience
With multiple payment methods, local payment capture, and guaranteed upfront fees, customers can shop in their local currency and not be hit with surprise fees upon delivery.
Reading tip: How to develop an omnichannel strategy with Shopify and successfully implement it using omnichannel marketing.
5. Compliance with product restrictions and local laws
Managed Markets ensures compliance with local regulations for international product sales and restricts the shipment of certain products to specific destinations. In addition, Managed Markets prepares and submits commercial invoices as required.
6. Guaranteed currency conversion rate
Managed Markets guarantees that refunds of orders placed within 30 days will be processed at the currency conversion rate in effect at the time of purchase. This avoids exchange rate fluctuations.
Conclusion
Managed Markets offers international retailers enormous potential. Compared to Shopify Markets, the Pro version shines above all with the included fraud check, the changes to shipping and the automatically displayed taxes and customs duties in the checkout. This Markets version could be very exciting for DACH merchants in the future. However, it is not yet known exactly when it will be rolled out in our region.
However, with the new Shopify Markets as a centralised interface for B2B, POS and online shops, an important step has already been taken for the expansion of commerce companies. We will update this blog post regularly to add new information about Shopify Markets and Managed Markets!
If you need help with your project feel free to contact us and we will be happy to help you.
Frequently asked questions about Shopify Markets and Shopify Managed Markets
How does Shopify Markets work?
Shopify Markets lets you localize your storefront for different markets to provide a better customer experience for your clientele. Specifically, you can use this tool to display local currencies, offer regionally relevant payment methods, and use localized domains, for example. Within your Shopify dashboard, you can use all these features and more, comparing and optimizing your different stores to make your international sales flexible and efficient.
How do I install Shopify Markets?
Click on the "Settings" section in your Shopify admin area > select "Add store" > activate the store you want to provide with a localized shopping experience. You can then access a selection of features.
What are the differences between Shopify Markets and Shopify Managed Markets?
With Shopify Markets, the focus is on localization, which is why the features are mostly geared towards optimizing the storefront for international markets. Shopify Managed Markets, on the other hand, is more about making international operations easier and more secure. For example, Shopify takes on much of the responsibility for managing cross-border sales.
How much do Shopify Markets and Shopify Managed Markets cost?
There are no monthly fees to pay for either Shopify Markets or Shopify Managed Markets. You can use most features for free with your Shopify subscription. For international orders, the following fees apply:
Currency conversion fee: Markets 2%; Managed Markets 2.5%
Transaction fee: Markets 0.85% - 1.5%; Managed Markets 6.5%
Who can use Shopify Managed Markets?
All Shopify merchants based in the US or Canada using the Basic plan or higher can use Managed Markets.
