Setting up local currencies on your Shopify store allows you to provide a more localized shopping experience, potentially boosting customer satisfaction and increasing conversion rates. Here’s how you can manage and customize local currencies for each market, with step-by-step instructions on activating or deactivating local currencies for a multiple-country market.
Setting Up Local Currencies
1. Determine Base Currency for New Markets:
- Single-Country Market: The base currency is automatically set to the official currency of that country. If it's not supported, it defaults to your store's base currency.
- Multiple-Country Market: The default base currency is your store's base currency. Local currencies are active by default, allowing customers to see prices in their local currency.
2. Manage Local Currencies in Multiple-Country Markets:
Local currencies can be activated or deactivated based on your needs. Here’s how you can manage these settings:
Steps to Activate or Deactivate Local Currencies:
- Go to your Shopify admin.
- Navigate to Settings > Markets.
- Select the market you wish to adjust.
- Click Products and pricing.
- In the Pricing section:
- To activate local currencies, check the Show prices to customers in their local currency box.
- To deactivate local currencies, uncheck this box and confirm by clicking Deactivate. This will make all customers in the market see prices in the market's base currency.
- Click Save to apply your changes.
Guidelines and Restrictions for Selling in Local Currencies
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Payment Gateways: Selling in local currencies is primarily supported by Adyen or Shopify Payments. This includes integrated payment methods like Shop Pay, Apple Pay, Google Pay, and PayPal. Transactions made through other third-party payment providers will process in your store’s default currency.
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Customizations and Pricing: You can customize market pricing (like setting product prices and percentage price adjustments) under all subscription plans. However, features like showing prices in local currencies and setting manual exchange rates require Shopify Payments.
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Supported Channels: Local currency pricing is supported in your online store and through the Storefront API in a headless environment. Shopify POS will only support transactions in your store's default currency.
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International Transaction Fees: Some customers might incur additional fees from their banks or credit card issuers, even if they are charged in their local currency. These fees are beyond Shopify’s control.
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Currency Conversion Apps: Be cautious with currency conversion apps from the Shopify App Store. Some may not be compatible with Shopify Payments' local currencies feature, potentially leading to discrepancies between the displayed and checkout currencies. Consider using Shopify’s Geolocation app or enabling automatic redirection to ensure consistent currency display.
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Editing International Orders: The ability to edit orders placed in international currencies is limited to certain stores. If you cannot edit an order, you may need to issue a refund and create a new draft order in the customer's local currency.
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Reporting: Your financial reports will display in your store currency, regardless of the transaction currency.
By carefully setting up and managing local currencies, you enhance the global shopping experience, catering effectively to international customers. This approach not only aligns with local market expectations but also positions your business for increased global outreach.