Selling Internationally on Shopify: Multi-Currency, Taxes & Localization Guide

Expanding your Shopify store internationally opens access to billions of additional customers. Cross-border ecommerce is projected to exceed $7.9 trillion globally by 2030, growing faster than domestic ecommerce. However, international selling introduces complexity around currencies, taxes, duties, languages, and compliance. Shopify Markets simplifies this with built-in tools for managing multiple markets from a single store.

Q: How do I sell internationally on Shopify?

Use Shopify Markets to create market-specific configurations for each country or region you want to sell in. Shopify Markets handles multi-currency pricing, automatic tax and duty calculation, language translation, and local domain management from your existing store -- no need for separate storefronts.

What is Shopify Markets?

Shopify Markets is Shopify's built-in solution for international commerce. Launched in 2022 and expanded significantly since, it allows merchants to manage multiple international markets from a single Shopify admin.

Key capabilities:

• Create market regions (individual countries or groups of countries)
• Set market-specific pricing and currency
• Enable automatic language translation
• Calculate duties and import taxes at checkout
• Display local payment methods
• Manage international domains and subfolders (e.g., yourstore.com/fr/)
• Configure market-specific product availability
• Set custom shipping rates per market

Shopify Markets is available on all plans, though some advanced features require Shopify Markets Pro (available on certain plans and regions).

Step 1: Multi-Currency Setup

Displaying prices in a customer's local currency increases conversion rates by 30-40% compared to showing prices only in your base currency.

Enabling Multiple Currencies

1. Navigate to Settings > Markets in your Shopify admin
2. Add a new market (e.g., "European Union" or a specific country)
3. Enable the local currency for that market
4. Choose your pricing strategy:

Pricing strategies:

| Strategy | How It Works | Best For | |----------|-------------|----------| | Auto-conversion | Prices convert at real-time exchange rates | Stores with many products, simple setup | | Manual pricing | Set specific prices per market | Brands needing precise price points | | Rounding rules | Auto-convert with psychological rounding ($29.99 instead of $29.47) | Balancing automation with clean pricing | | Percentage adjustment | Apply a markup/discount to auto-converted prices | Accounting for market-specific costs |

Q: Should I use automatic currency conversion or manual pricing on Shopify?

For most stores, start with automatic conversion plus rounding rules. This provides localized prices without the overhead of maintaining separate price lists. Switch to manual pricing for high-priority markets where you need precise control over price points and margins, accounting for local competition and purchasing power.

Currency Display Best Practices

• Always show the currency code alongside the symbol (e.g., "$49.99 CAD" not just "$49.99") to avoid confusion between USD, CAD, and AUD
• Enable the currency selector in your header so visitors can switch currencies
• Display prices inclusive of VAT for EU markets (this is legally required)
• Ensure your checkout shows the final price in the customer's selected currency

Step 2: Duties and Import Tax Configuration

International orders often incur duties and import taxes, which can surprise customers and lead to refused deliveries, returns, and chargebacks. Shopify can calculate and collect these at checkout.

Enabling Duty Collection

1. Go to Settings > Markets > [Your Market] > Duties and import taxes
2. Enable "Charge duties and import taxes at checkout"
3. Assign Harmonized System (HS) codes to your products
4. Set the country of origin for each product

What are HS codes?

Harmonized System codes are internationally standardized codes that classify traded products. Each product category has a specific HS code that determines the duty rate. For example:

• 6109.10 -- T-shirts, cotton
• 4202.22 -- Handbags, leather
• 8471.30 -- Laptops and computers

Assign accurate HS codes to every product to ensure correct duty calculations. Incorrect codes can result in shipments being held at customs.

Delivered Duty Paid (DDP) vs Delivered At Place (DAP)

| Model | Customer Experience | Your Responsibility | |-------|-------------------|-------------------| | DDP (Delivered Duty Paid) | Customer pays duties at checkout; no surprise fees | You collect and remit duties | | DAP (Delivered At Place) | Customer pays duties upon delivery; unexpected fees | Carrier collects duties from customer |

DDP is strongly recommended for customer experience. Customers who encounter unexpected duty charges at delivery frequently refuse packages or leave negative reviews. Shopify Markets supports DDP by calculating and collecting duties during checkout.

Step 3: Translation and Localization

Selling in a customer's native language increases conversion rates significantly. A study by CSA Research found that 76% of consumers prefer to buy products with information in their own language.

Setting Up Translation

Shopify supports two translation approaches:

Shopify Translate & Adapt app (free):

• Automatic machine translation powered by AI
• Manual override for critical content
• Supports product titles, descriptions, collection pages, and checkout
• Available for all Shopify plans

Third-party translation apps:

• Weglot, Langify, and Transcy offer more advanced features
• Professional human translation integration
• URL-based language routing (/fr/, /de/, /es/)
• Automatic language detection based on browser settings

Localization Beyond Translation

True localization goes further than language:

• Date formats -- MM/DD/YYYY (US) vs DD/MM/YYYY (EU, most other regions)
• Measurement units -- Imperial (US) vs metric (everywhere else)
• Address formats -- Field order and required fields vary by country
• Color and imagery -- Cultural preferences differ by market
• Product sizing -- Provide size conversion charts for apparel
• Phone number format -- Include country code selectors in forms

Step 4: Local Payment Methods

Credit cards are not the dominant payment method everywhere. Offering local payment methods dramatically increases conversion in non-US markets.

Key regional payment methods:

| Region | Popular Payment Methods | |--------|----------------------| | Europe | iDEAL (Netherlands), Bancontact (Belgium), Klarna (Nordics), SEPA Direct Debit | | Asia-Pacific | Alipay, WeChat Pay, Paytm (India), GrabPay (SEA) | | Latin America | Boleto Bancario (Brazil), OXXO (Mexico), Mercado Pago | | Middle East | Mada (Saudi Arabia), cash on delivery | | Global | PayPal, Apple Pay, Google Pay, Buy Now Pay Later |

Shopify Payments supports many regional methods automatically. For additional methods, third-party payment gateways or Shopify Markets Pro expand your options.

Step 5: International Shipping Configuration

Shipping is the most operationally complex aspect of international selling. Configure shipping zones and rates carefully.

Shipping Zone Setup

1. Navigate to Settings > Shipping and delivery
2. Create shipping zones for each market (or group similar countries)
3. Set rates per zone using one of these methods:

Shipping rate types:

• Flat rate -- Simple but may not reflect actual costs ($15 to Europe, $25 to Asia)
• Weight-based -- Accurate for heavy products, complex to configure
• Price-based -- Free shipping above a threshold per market
• Carrier-calculated -- Real-time rates from carriers (most accurate, requires Shopify plan or higher)

International Shipping Best Practices

• Offer tracked shipping for all international orders (reduces disputes)
• Set realistic delivery time estimates per region
• Consider using Shopify Shipping for discounted international rates
• Partner with carriers experienced in your target markets (DHL, FedEx, UPS for global; regional carriers for specific markets)
• Include handling time in delivery estimates
• Provide clear customs documentation to avoid delays

Q: How long does international Shopify shipping take?

International shipping times vary by carrier and destination: 5-10 business days for express shipping to major markets, 10-20 business days for standard shipping, and up to 30 days for economy options to remote regions. Set clear expectations on product pages and in confirmation emails.

Step 6: Legal and Tax Compliance

Selling internationally requires compliance with local regulations. Key areas to address:

VAT/GST Registration

If you sell to customers in the EU, UK, Australia, Canada, or other regions with consumption taxes, you may be required to register for VAT/GST and remit taxes to local authorities.

Simplified rules:

• EU: Merchants selling over EUR 10,000 cross-border must register for OSS (One-Stop Shop) and collect VAT at the destination country's rate
• UK: Sellers shipping goods valued under GBP 135 must register for UK VAT and collect it at checkout
• Australia: Businesses with AUS $75,000+ in annual Australian sales must register for GST
• Canada: Federal GST/HST applies; provincial rules vary

Shopify calculates and collects these taxes at checkout. You are responsible for registration and remittance.

GDPR and Data Privacy

Selling to EU customers requires GDPR compliance:

• Obtain explicit consent for marketing emails
• Provide a clear privacy policy describing data collection and usage
• Allow customers to request data deletion
• Implement cookie consent banners on your storefront
• Do not transfer personal data outside the EU without adequate safeguards

Product Compliance

Certain products have import restrictions or require compliance certifications:

• Electronics may need CE marking (EU) or FCC certification (US)
• Cosmetics and supplements have ingredient regulations per country
• Textiles may require fiber content and care labeling
• Toys must meet safety standards (EN71 for EU, ASTM F963 for US)

Research product compliance for every market you enter.

Step 7: International SEO and Domain Strategy

Domain options for international markets:

| Strategy | Example | SEO Impact | |----------|---------|-----------| | Subfolders | yourstore.com/fr/ | Consolidates domain authority, recommended for most stores | | Subdomains | fr.yourstore.com | Moderate SEO value, simpler setup than ccTLDs | | Country-code TLDs | yourstore.fr | Strongest local SEO signal, highest management overhead |

Recommendation: Use subfolders (yourstore.com/fr/, yourstore.com/de/) for most Shopify stores. This is the default Shopify Markets approach and consolidates all SEO authority under your primary domain.

Implement hreflang tags to tell search engines which language version to show in each market. Shopify Markets generates these automatically. Verify them using Google Search Console's International Targeting report.

For comprehensive international SEO strategy, our Shopify SEO services include multi-market optimization and hreflang configuration.

Measuring International Performance

Track these metrics per market:

| Metric | What It Tells You | |--------|------------------| | Conversion rate by market | Which markets convert best | | Average order value by currency | Pricing effectiveness per market | | Cart abandonment by market | Checkout friction issues (payments, duties, shipping) | | Return rate by market | Product-market fit and sizing issues | | Shipping complaints by region | Carrier performance and delivery expectations | | Customer acquisition cost by market | Marketing efficiency per region |

Professional International Expansion Support

Expanding internationally on Shopify involves strategic decisions about market prioritization, pricing, compliance, and logistics. ECOSIRE provides Shopify consulting services to help you plan and execute your international expansion strategy.

From store migration for businesses consolidating multiple regional stores to ongoing support and maintenance for multi-market operations, our team ensures your international setup runs smoothly. Contact us to discuss your international selling goals.

Key Takeaways

• Shopify Markets is the foundation for international selling, managing currencies, languages, taxes, and domains from one admin
• Displaying local currencies increases conversion by 30-40%
• Use DDP (Delivered Duty Paid) to avoid surprise charges that cause refused deliveries
• Local payment methods are essential for non-US markets
• Assign accurate HS codes to all products for correct duty calculations
• Subdirectory domain strategy (/fr/, /de/) is recommended for most stores
• Research VAT/GST registration requirements and product compliance for every target market