Introducing Shopify Markets Pro

Shopify Markets Pro broadens the scope of the cross-border management tools offered by Shopify Markets. In addition to providing resources for setting up and handling sales in global markets, Shopify Markets Pro delivers supplementary features, powered by Global-e, that facilitate your international market growth and optimization straight from your Shopify control panel.

Shopify Markets Pro simplifies your entry into new international markets and alleviates the complexities associated with cross-border trading. It efficiently manages local regulations, taxes, duties, international shipping, and market localization for each global market you venture into.

Before opting for Shopify Markets Pro, it’s crucial to understand the following:

Global-e:

When utilizing Shopify Markets Pro, Global-e operates as the merchant of record, a legal entity entrusted with selling products to customers and abiding by local laws and regulations in different regions or countries. Unless another party like Global-e is engaged to undertake these tasks, most merchants serve as their own merchant of record and are responsible for tasks such as tax registration, tax remittance, setting up local payment methods, and managing shipping and fulfillment.

Through Shopify Markets Pro, Global-e takes over these complexities, handling tax remittance to local authorities, accepting local payments, managing duties and import taxes, thus enabling you to penetrate new international markets swiftly. As a Markets Pro user, there’s no need to register for tax in the countries you are selling to. Global-e takes care of this aspect, ensuring compliance when you’re selling internationally.

Pricing Structure:

Markets Pro charges for international orders are as follows:

• A 6.5% fee per transaction, inclusive of the payment processing fee.
• A 2.5% Foreign Exchange (FX) or currency conversion fee. By default, this fee is added to your product prices and borne by your customers, although you can adjust your product prices for global markets according to your preferences.
• There’s no monthly fee for Markets Pro, and you are not tied to any specific usage duration. You are free to discontinue using Markets Pro whenever you wish.

Flow of funds:

Markets Pro functionalities are driven by Global-e. Upon placement of an international order in your store, Global-e processes the transaction and holds the funds. When Global-e operates cross-border, they act as your merchant of record and retain the funds to pay the necessary costs to the authorities involved in the cross-border trade transaction.

Once Global-e has paid all the costs, like taxes and duties, you receive the remaining amount.

Payment Process:

Transaction data for completed orders is compiled on the 1st, 8th, 15th, and 22nd day of each month. Orders not yet fulfilled are not included in the payouts. Orders are deemed fulfilled for payout purposes when the shipping label is scanned by DHL Express.

Each payout includes all transactions that happened since the last payment cycle. Payments are dispatched within 1-3 business days and usually take a few more days to reflect in your bank account. The transaction data provides a detailed breakdown of all associated costs and fees for each fulfilled order, including taxes, duties, remitted VAT, shipping costs, and the Markets Pro processing fee. For Markets Pro transactions, “Flow Commerce” appears on your bank account and credit card statements.

Your payout details can be found in your Shopify administration panel.

Shop Pay:

If your store has activated checkout extensibility, then you can utilize Shop Pay for your global markets with Markets Pro. This allows your international customers to use their Shop accounts for quick checkout.

Local Payment Methods:

Markets Pro enables a wider array of local payment methods for worldwide markets. For instance, if you’re catering to customers in Denmark, those customers can use Klarna to pay for products in the local DKK currency.

Shopify Markets Pro is currently in its early access phase and only available to a select group of merchants.

In need of more insights about Shopify Markets pro, feel free to contact our team.