Selling internationally is one of the fastest ways to expand revenue for a Shopify store — the global e-commerce market is enormous and many product categories are significantly underpenetrated outside North America. But cross-border commerce comes with complexity that stops most merchants from pursuing it seriously: duties and taxes that vary by country and product, local payment methods that are required in some markets, and compliance requirements that differ across 200+ jurisdictions.
Shopify Markets Pro was designed to remove these barriers. This guide explains what it does, how it works, and how to decide whether it makes sense for your store.
Understanding the International Commerce Stack
Shopify offers two layers of international selling support:
Layer 1: Shopify Markets (included on all plans)
- Localized pricing in local currencies
- Language translation
- Market-specific domains (country code TLDs or subfolders)
- Market-specific product availability
- Geolocation-based redirects
Markets solves the customer experience localization problem. A French customer sees prices in euros, content in French, and a checkout optimized for their expected experience.
What Markets does not solve: the operational complexity when an order actually crosses a border — duties calculations, local payment processing, customs documentation, and compliance with each country's import regulations.
Layer 2: Shopify Markets Pro (powered by Global-E) Adds the operational cross-border layer on top of Markets' localization:
- Guaranteed landed cost at checkout (duties and import taxes calculated and collected upfront)
- 150+ local payment methods
- Automated customs documentation
- Restricted product screening by destination country
- Currency conversion and FX management
- Fraud protection for international transactions
Together, these two layers create the full cross-border commerce solution.
What Makes Cross-Border Commerce Difficult Without Markets Pro
Duties and Taxes Uncertainty
When an international customer receives a package, customs authorities may levy import duties and VAT/GST on top of what they paid. In some countries, these charges are significant:
- UK: 20% VAT on most goods
- Brazil: 60-100%+ effective tax rate on many product categories
- EU: 20-25% VAT on orders over 150 euros
- India: 10-40% import duties depending on product category
If the customer was not informed of these charges at checkout, they may:
- Refuse the package (which is returned to you at your cost)
- Demand a refund
- Leave a negative review about "hidden charges"
- Simply not receive the order if they cannot afford the customs bill
Markets Pro calculates these charges at checkout and collects them from the customer, so there are no surprises at delivery.
Local Payment Methods
Payment method preferences vary dramatically by country:
- Netherlands: 57% of e-commerce uses iDEAL (local bank transfer)
- Germany: 20%+ of payments are via Sofort; SEPA bank transfer preferred for larger purchases
- Brazil: Boleto Bancário is used for 15-20% of online payments
- Sweden: Klarna's invoice payment is deeply embedded in e-commerce culture
- Japan: Konbini (convenience store) payment is still common
A store that only offers Visa/Mastercard/PayPal is effectively blocking significant purchase intent in these markets. Markets Pro's 150+ local payment methods ensure customers in each market can pay using their preferred method.
EU Compliance Post-Brexit and IOSS
Since Brexit and the EU's VAT reform (effective July 2021), merchants shipping to EU customers face specific requirements:
- Shipments under 150 euros require IOSS (Import One-Stop Shop) registration and VAT collection
- Shipments over 150 euros trigger standard customs procedures with HS codes and origin declarations
- Accurate product categorization is required for correct duty calculation
Markets Pro handles IOSS registration and management, ensuring compliance without requiring the merchant to set up separate EU tax registrations.
Setting Up Markets Pro
Prerequisites
- Shopify plan: Shopify, Advanced, or Plus
- Shopify Payments enabled
- Business entity established (required for Global-E merchant agreement)
Configuration Steps
Step 1: Enable Markets Pro in Shopify admin Go to Settings > Payments > International > Shopify Markets Pro. Click to get started. You will be directed to complete the Global-E merchant onboarding.
Step 2: Complete Global-E merchant agreement Provide business information, banking details, and agree to Global-E's merchant terms. Review time is typically 2-3 business days.
Step 3: Configure product catalog
- Assign HS (Harmonized System) codes to your products — these are the international classification codes that customs uses to calculate duties. If you are unsure of your codes, Global-E's catalog tool suggests them based on product category.
- Flag any restricted products (items prohibited in certain countries)
- Set inventory allocations for international markets
Step 4: Select enabled markets Choose which countries to enable Markets Pro for. You can enable all countries that Global-E supports, or start with your highest-traffic international markets and expand.
Step 5: Configure pricing and payment methods
- Set pricing rules per market (same as USD, adjusted for local purchasing power, or custom pricing)
- Select which local payment methods to offer per market
- Configure duty display preference (included in product price vs. shown at checkout)
Step 6: Test international orders Use a VPN or test with team members in the target markets to confirm the checkout experience shows correct pricing, local payment methods, and landed cost calculation.
Countries Where Markets Pro Creates the Most Value
High-complexity markets worth prioritizing:
European Union (all 27 countries): IOSS compliance, high VAT rates, strong local payment method preferences. Markets Pro handles IOSS automatically and enables Klarna, iDEAL, Sofort.
United Kingdom: Post-Brexit customs requirements, 20% VAT collection. Markets Pro manages UK VAT registration and collection.
Brazil: Complex import duties, CPF requirement, Boleto payment. Markets Pro handles CPF collection and Boleto processing.
Canada: GST/HST calculation varies by province. Markets Pro manages correct Canadian tax collection.
Australia/New Zealand: GST collection required on cross-border digital and physical goods above certain thresholds.
Japan: High consumer preference for specific payment methods; Markets Pro enables convenience store and bank transfer options.
Economics: Is Markets Pro Worth the Transaction Fee?
The 3-4% transaction fee on international orders is meaningful. Evaluate it against:
Cost savings:
- Customs disputes and returns are expensive (return shipping, processing costs, lost revenue)
- Failed deliveries from refused packages cost $15-40 in logistics
- Customer service time managing international inquiries
Revenue gains:
- Higher international conversion rate from local payment methods
- Reduction in cart abandonment from landed cost transparency
- Access to markets previously impractical (Brazil, Russia, complex EU markets)
Rule of thumb: If international orders currently represent less than 10% of your revenue and you see minimal customer complaints about customs charges, standard Markets without Pro is likely sufficient. If international is 20%+ of revenue or you have a target market with complex payment or duty requirements, Markets Pro's features justify the fee.
What Markets Pro Does Not Do
- Warehousing or fulfillment: Markets Pro is a commerce and compliance layer, not a logistics company. You still need to ship international orders through your own carrier relationships.
- Returns processing: Returns from international customers route back through your standard return process. Markets Pro does not manage international returns logistics.
- Tax filing: Markets Pro collects international taxes at checkout; it does not file those taxes with local authorities. Global-E handles the actual VAT remittance on your behalf under the IOSS arrangement.
Alternative Approaches for Simpler International Expansion
If you are just starting international expansion and not ready for Markets Pro:
- Focus on English-speaking markets first: UK, Canada, Australia — lower compliance complexity, same payment method expectations as US
- Use Shopify Markets base features: Currency conversion, language translation, basic market pricing
- Accept that duty surprises will occur and handle them case-by-case until volume justifies automation
- Target markets without high duty barriers: Many Southeast Asian and Latin American markets have higher import thresholds before duties apply
Markets Pro is the right tool for merchants who have validated international demand and want to professionalize the experience. For merchants testing the waters, Shopify Markets base features provide enough localization to start.