International Commerce with Shopify Markets Pro

In today's interconnected digital landscape, the traditional barriers to commerce are rapidly dissolving, paving the way for unprecedented opportunities for e-commerce merchants. With the global e-commerce market skyrocketing to an estimated $6.3 trillion in 2024—a remarkable 9.4% increase from the previous year—businesses are increasingly drawn to the promise of expanding their reach across international borders.

The benefits of global expansion are undeniable, yet so too are the obstacles that come with it. 

Shopify’s Markets Pro emerges as a game-changing solution for merchants venturing into international markets. With a suite of powerful tools designed for efficiency, this platform simplifies the complexities of global expansion. From managing diverse currencies and languages to streamlining shipping logistics, Markets Pro empowers merchants to navigate the challenges of cross-border commerce effortlessly. With its intuitive interface and comprehensive features, Shopify’s Markets Pro facilitates seamless international growth, enabling merchants to capitalize on global opportunities with confidence and ease. To uncover the main differences between Shopify Markets and Markets Pro, read on.

Shopify Markets Pro vs. Shopify Markets

Shopify Markets comprises a range of localization features integrated into every Shopify store, with some available for free and others incurring a per-transaction fee.

Markets Pro represents an enhancement of Shopify Markets, merging its features with a Merchant of Record service (powered by Global-e), expanded functionalities, and added automation. These supplementary features handle various operational aspects of global sales, enabling merchants to effortlessly sell worldwide and maintain minimal workload and overhead costs.

Merchants in the Continental United States can now access Markets Pro regardless of their Shopify plan. Expansion to additional regions is anticipated as eligibility broadens.

To enable Markets Pro, merchants must submit an upgrade application through their Shopify admin. Approval may hinge on the product types available in their store.

Built-in features that come with every Shopify plan

Both Shopify Markets and Shopify Markets Pro offer sophisticated features for localization and market operations. These include the utilization of localized international domains and the automatic redirection of customers to region-specific domains. Through the Geolocation app, customers are provided with language and country recommendations based on their geographic location and browser language settings. Store translation capabilities enable merchants to provide a tailored experience in various languages.

Furthermore, managing multiple markets and their content can be done efficiently through Shopify admin. Additionally, custom pricing options can be set for each market to optimize sales strategies.

So why should you opt for Shopify Markets Pro?

Transitioning to Markets Pro means advancing your e-commerce capabilities to a higher level. Noteworthy improvements from Markets to Markets Pro include the integration of a fraud checker in Markets Pro and enhancements in shipping services. This includes access to discounted DHL Express rates and simplified duties and tax handling at checkout.

Below, we'll delve into these upgrades in detail.

Expanded Currency Options:

In Shopify Markets, brands can opt to sell in local currencies and receive payments in their store's primary currency, facilitated by Shopify Payments. This approach aligns with Shopify's observation that 92% of international visitors prefer to browse and purchase items in their own currency, positively influencing conversion rates. 

With Markets Pro, Shopify goes a step further by offering the opportunity to integrate additional local payment methods across various locations. This feature empowers customers to make purchases using their preferred payment methods, fostering trust and decreasing the likelihood of abandoned carts.

For instance, brands may incorporate payment options such as Klarna for Austria, Belgium, Finland, France, Germany, Ireland, Italy, Netherlands, Spain, the United Kingdom, Norway, and Canada, or they may opt for globally recognized methods like PayPal.

Flow of Funds:

Supported by Global-e, Markets Pro operates seamlessly within your Shopify store. When an international order is placed through Markets Pro, Global-e takes on the responsibility of processing the transaction and managing the funds within their account.

In managing cross-border transactions, Global-e functions as your designated merchant of record. They retain the funds to cover expenses such as taxes and duties, facilitating the remittance of these costs to the relevant authorities. Once that is taken care of, merchants receive a payout of the remaining funds within 1-3 business days.

The merchant of record (MoR) model ensures that every transaction occurs directly on your Shopify store and checkout. Meanwhile, behind the scenes, the MoR acts as a silent intermediary between you and your global customers. Essentially, the MoR assumes the role of the merchant on paper for all international transactions, simplifying the process and reducing administrative burden.

This model enables merchantss to expand your sales worldwide directly from your Shopify store, with Markets Pro handling the associated liabilities, challenges, and paperwork.

Fraud Protection:

Every order processed through Markets Pro undergoes automatic fraud screening and benefits from chargeback protection - not available on Shopify Markets. However, there are some rare chargeback scenarios not covered by Markets Pro, which you should handle independently.

One such scenario is friendly fraud, also known as chargeback fraud, which typically occurs when a customer makes a purchase using their credit card, receives the product, and then disputes the charge with their credit card company, claiming the transaction was unauthorized or fraudulent. Another instance of friendly fraud occurs when Markets Pro rejects an order for fraud, yet you proceed to ship the package.

Service errors may also lead to chargebacks. This can happen if a customer disputes a charge with their payment provider because they believe they're entitled to a refund that you haven't provided, if you or your fulfillment partner fails to fulfill an order, or if the item received differs from its description on your store.

Fulfillment issues can also arise when the shipping carrier doesn't deliver an order or is potentially lost.

Another chargeback scenario arises from shipping dangerous goods by mistake. This occurs when you unintentionally include a dangerous item, not approved for inclusion in your Markets Pro product catalogue, in a package and ship it.

Shipping:

In the recent Winter Editions, Shopify has incorporated new standard options in partnership with DHL eCommerce, which now encompasses USPS first-mile services. These options include delivered duty paid (DDP) shipping labels and remove any order minimums.

This update allows you to provide delivered duty paid (DDP) shipping options at checkout, ensuring your customers aren't burdened with extra fees upon delivery. This clarity in shipping costs can enhance cart conversion rates by eliminating unexpected charges.

Express Checkout

When checkout extensibility is enabled on your store, you can utilize Shop Pay for your international markets through Markets Pro. This allows your international customers to sign in to their Shop accounts for an express checkout process.

Shop Pay offers numerous benefits for international customers. It simplifies the checkout process, reducing the time and effort required to complete a purchase. With features such as saved shipping and payment information, customers can swiftly navigate through checkout with minimal steps.

Additionally, Shop Pay ensures a secure and trusted payment environment, instilling confidence in customers as they conduct transactions across borders. The platform incorporates advanced security measures to safeguard sensitive information, guaranteeing the safety of each transaction.

By integrating Shop Pay into your international markets with Markets Pro, you enhance the shopping experience for your customers while streamlining your operational processes. The convenience and security provided by Shop Pay contribute to heightened customer satisfaction and loyalty, driving overall business growth on a global scale.

Avex elevates your cross-border management to new heights through Shopify Markets Pro, powered by Global-e.

Recognizing that your business objectives are dynamic, our team crafts internationalization strategies with scalability at their core. Whether you're embarking on regional expansion or planning a global rollout, our solutions are tailored to evolve alongside your business, ensuring a future-proof approach to international growth. Get in touch and let’s talk international commerce.