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Expanding your business to international market is an effective path to revenue growth. Once you've already gained profits and traction in your domestic market, reaching out to similar markets where the same formula might work becomes very appealing.
There are many concerns when you expand into new countries, from international fulfilment requirement to foreign tax obligations.

The good news is that making your website international-friendly has become much easier in recent years. The solution now is Multi-currency supportable apps such as Transcy and Shopify Payments multi-currency feature .

Here we want to discuss 3 options for showing prices in different currencies to your customers as the below.

MULTI-CURRENCY OPTION 1: ESTIMATED PRICE

Basically base on a Multi-currency app such as Transcy, which simply support to show an indication of the price in the selected currency on the Switcher. The app already use an exchange rate and is only an approximation, even not including fees such as taxes so that is only for your customers' reference on website.

To make the user experience smoothly, Transcy help customers can browse your store in multiple languages even in their local currency and/or language from their first shopping approach to add to cart. However, as soon as customers get checkout page to purchase their orders, the store will revert back to the base currency, which they will need to pay in. That means customer will see the price in your store's currency (default currency) and of course they will be charged an FX fee by their bank for shopping in another currency.

For example:

Your base or default currency is USD on Shopify store.



Customer select Japanese Yen (¥) on the currency Switcher, as a result, it will show the price of product in Japanese Yen in the product page like this picture.



When customer click on Buy it now button and go ahead to the checkout page for paying their orders, the store will revert back to your base currency is USD.



The cause is because Shopify manage the conversion for your website, and not all apps are compatible with multi-currency on Shopify as well as different price rounding so we cannot intervene directly the checkout page at the moment. In this case, you should refer to Shopify Payments multi-currency as an alternative option.

However, when customer fulfill a multi-currency order, line item prices will be converted into your store's currency if your store set up Automatic conversion rate. Because these amounts are approximate conversions from your customer’s currency and can fluctuate based on the exchange market, and also different price rounding, you can't control the currency conversion, and pricing will fluctuate over time causing confusion for some familiar customers. This also makes some drawbacks for Shopify Payments multi-currency that we are about to go through deeply in the next section.

MULTI-CURRENCY OPTION 2: SHOPIFY PAYMENTS MULTI-CURRENCY

Shopify Payments multi-currency tends to be the preferred alternative, to help customers can shop in their local currency from the homepage to checkout confirmation. With this, you can pick from a list of over 130 different currencies, which you want your store to be available in. Customers can then shop in one of these chosen currencies throughout their full purchase journey.

To make this works by customers choosing a currency selector from your theme then your customers can choose their preferred currency from a dropdown list of currencies. Currency selectors are built in to some themes or can be added through the Geolocation app. The Geolocation app also allows you to prompt customers to switch to their local currency based on their IP address.

NOTE:

If you are on the Shopify Plus plan, then your store will automatically set your customers' currency based on their IP. If you are on another plan, then you can give customers the option to switch to their local currency by using the free Geolocation app by Shopify. The Geolocation app makes language and currency recommendations to your customers based on their geographic location, and browser or device language. The Geolocation app also adds a selector in the footer of your online store that allows your customers to choose their language and currency.

To use Shopify multi-currency, you need to be using Shopify’s own payment gateway called Shopify Payments. Your business must be in one of the following countries: Australia, Austria, Canada, Denmark, Germany, Hong Kong SAR Chin, Ireland, Italy, Japan, The Netherlands, New Zealand, Singapore, Spain, Sweden, United Kingdom, United States (excluding US territories except for Puerto Rico.)

Here are the basic steps on how to set up Shopify Multi-currency:

Sign up for Shopify Payments, if you haven’t already
Enable multiple currencies in Shopify Payments
View and set up your converted prices (including Enable rounding rules)
Add a currency selector to your storefront.
Optionally, add geo-detection to locate your visitor and pick out the best currency for them
Don’t forget to consider gift cards and discounts in multiple currencies.
Test and launch

Or you could click here to learn more Shopify's official multi-currency for Shopify payments instructions.

Additionally, when you set up Shopify Payments multi-currency, you should note that the conversion rates of the currencies you offer will depend on whether you use automatic currency conversion or manual exchange rate conversion.

Automatic exchange rate conversions

When you sell in multiple currencies, your online store prices are converted to your customer's currency. The prices in your store change automatically with market exchange rates.
Your prices are converted by multiplying the store price by the currency conversion rate, adding the conversion fee, and then applying the rounding rules for that currency if applicable. Your converted prices include your currency conversion costs.

For example, when a $10.00 USD product is converted to Euros, the converted price of €8.90 includes the currency conversion rate and conversion fee:

(Product price x currency conversion rate) x (1 + currency conversion fee)

= ($10.00 USD x 0.867519) x (1 + 0.015) = €8.81

If you have rounding rules enabled, then the total is rounded up to €8.90.

NOTE:

As we mentioned before that the price will be converted into your store's currency when customer fulfill a multi-currency order. Because the conversion always fluctuate based on the exchange market as well as different price rounding that you set. So they might differ from the total amount captured.

Manual exchange rate conversions

On the Advanced Shopify, and Shopify Plus plans, you can set the exchange rate manually. This allows you to lock in a fixed rate for each currency you have enabled, and you won't have to worry about fluctuating exchange rates. Your prices won't change with the market rates.

But when using manual conversion rates, you might gain or lose money depending on your variance against current market exchange rates. So please pay attention on this to manage your profits effectively.

IN CONCLUSION:

Automatic conversion rates can put you in some risks accidentally due to automatic price fluctuations on market. Additionally, some businesses won’t like the idea of product prices changing day-to-day. Even with the price rounding, they might deem this to be too odd of an experience for their customers.

Manual conversion rates, you’ll have more price control but this is not feasible in some cases. For instance, some brands might wish to be able to follow manufacturers’ suggested retail prices for a product in a specific currency. But the manual conversion rate you cannot set currency for a specific product, it applies to all your products, meaning this wouldn’t be possible.

Therefore, you will need consider these into your financial management carefully and compare against alternatives for processing foreign currencies reasonably.

Find out more about setting currency conversions with Shopify multi-currency here.

MULTI-CURRENCY OPTION 3: MULTI-STORE

With multi-region, you create a seperated store instance for each currency, and each of these are hosted on a different URL.

Example: yourstore.com, eu.yourstore.com, ca.youstore.com

The pricing and checkout is in the base currency of that region e.g. eu.yourstore.com would be in EUR. The main drawback here is that you need to maintain several instances of your store.

To do this, you can add additional, international domains. A regional domain or subdomain is a URL that is specific to a region or country. These types of domains are also called international domains. If you want to sell to buyers in multiple regions or countries, then you can use international domains to display your online store in the language and local currency that are specific to each region or country. You can use international domains with both Shopify-managed domains and third-party domains. To use international domains, you must be on the Shopify plan or higher.

For one more instance, if your site has main customers in France, you might set up fr.yourstorename.com that will show your store in French language and EUR currency once customers landed on your site. Learn more about using international domains when selling internationally with Shopify Payments multi-currency.

To get limitation as well as learn more Shopify Payments multi-currency, please visit this link.

Hope this helps you a lot

Should you need further support, please feel free to contact us via live chat or email us at support@fireapps.io
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