Shopify Plus as a global expansion solution

Merchant of Record

One of the key aspects of expanding into international markets is compliance with local laws and regulations in relation to taxes etc. Shopify Plus offers a solution through its Merchant of Record feature.

Merchant of Record is a legal entity responsible for selling products to a customer and for complying with local laws and regulations in a given country or region. If you hire a third party, such as Global-e (included with Shopify Plus), that party can take on these responsibilities for you. This means you don’t have to have tax registration in the countries you sell to. Global-e provides tax registration, allowing you to comply with the rules when selling internationally.

Shopify Markets and Shopify Markets Pro

Shopify Plus also offers tools to help you set up and manage sales in international markets, specifically Shopify Markets and Shopify Markets Pro. Basic Shopify Markets allows you to quickly and easily add new markets and currencies to your store. Shopify Markets Pro then expands on these capabilities by offering additional features to help you tackle the complexities of selling in other countries or regions, such as managing taxes and import fees, specific local payment methods, and more.

Shopify Markets Pro and Merchant of record features are only available in certain countries for now, but Shopify’s plan is to rapidly increase support in as many countries as possible during 2023.

International payment methods and Shopify Payments

Accepting local payment methods is crucial to your success in international markets. Shopify Plus makes it easy with Shopify Payments. This allows you to accept payments from different countries and currencies without having to set up a third party to process payments. In addition, Shopify Payments also offers expedited payments, digital wallets, and local payment methods, making the payment process easier for your customers.

Taxes

The Shopify Plusplatform offers the ability to estimate duties and taxes directly in the cart, eliminating hidden costs and increasing conversion because customers aren’t surprised by additional fees later. This is especially useful for international sellers who have to account for different tax rates and regulations in different countries.

Payment methods

Shopify Plus supports many local payment methods, which means your customers can pay as they see fit. This again increases conversion and improves the overall customer experience.

International transport

The Shopify Plus platform also facilitates international shipping. You can integrate your warehouses and order fulfillment solutions for easier management in different countries. Shopify Plus also offers options to optimize shipping, such as the ability to offer free shipping when an order reaches a certain value. The solution that Shopify offers for international shipping is called the Shopify Fulfillment Network (SFN).

Shopify Fulfillment Network (SFN)

Shopify Fulfillment Network (SFN) is a service offered by Shopify that allows merchants to use Shopify’s warehouse network to store and distribute their products. This service is designed to help merchants improve efficiency and speed of order fulfillment while reducing logistics costs.

How it works: when a merchant logs into SFN, their products are distributed across Shopify’s warehouse network. When a customer then places an order, that order is automatically routed to the nearest warehouse where the product is stocked.

Benefits: SFN offers a number of benefits for merchants. In addition to improving efficiency and speed of order fulfillment, SFN can also help merchants reduce warehousing and distribution costs. With its global warehouse network, SFN facilitates merchants’ expansion into new markets.

Services: SFN also offers a range of other services, including packing and shipping orders, managing returned shipments, and even custom packaging to enhance brand credibility. These services can help retailers provide a better customer experience while saving time and costs associated with logistics.

Integration: SFN is fully integrated into the Shopify platform, meaning merchants can manage their inventory and orders directly from their Shopify dashboard. This integration also allows merchants to track the status of their orders in real-time and provide accurate shipment tracking information to their customers.

Once you decide to use SFN, you will need to ship your items to one or more SFN warehouses. This process involves creating a shipping plan in your Shopify account, preparing your goods for shipment, printing and attaching labels to your shipments, and finally sending your shipments to the SFN warehouse.

Upon receipt of your goods at the SFN warehouse, Shopify will inspect and list your goods in their inventory. After a customer places an order, SFN will automatically pick, pack, and ship the goods directly to the customer.

The SFN service is currently only available for the US, however, it is likely that Shopify plans to expand SFN to Europe.

One-Stop Shop

Shopify Plus acts as a one-stop shop for all your e-commerce needs. This means you can manage all aspects of your store, from product and order management to marketing and analytics, right from one platform. This makes it easy to manage and scale your store, especially if you’re expanding into new markets.

Conclusion

Shopify Plus is a powerful tool for businesses looking to expand into international markets. With features like Merchant of Record, Shopify Markets, Shopify Markets Pro, and Shopify Payments, Shopify Plus can ease the expansion process and help businesses grow and thrive on a global scale.

Considering Shopify Plus as your new e-commerce platform? This comparison of Shopify Plus, Adobe Commerce and Shoptet Premium platforms can help you decide. We’d also be happy to discuss this with you in more detail – book your free consultation here or contact us using the form below⬇

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