Shopify Markets vs. Expansion Stores: Choose the Right Strategy for Global Ecommerce

Before the introduction of Shopify Markets (September 2021), the only option for Shopify merchants looking to expand into new markets with locally tailored content was to open an additional Shopify store. With Shopify Markets, it's become easy to add a new market. You can quickly get started and easily customize language, content, product selection, and more, and sell in local currency—all managed from the same admin.

It sounds like every e-commerce dream. Yet many companies still choose expansion stores, meaning separate shops for each market.

Choosing the right solution has significant implications both economically and in daily operations. But how do you know which solution is right for your business? We'll help you gain insight into this in this post.

Many of DTAILS' customers choose a combination model, where Shopify Markets is used for smaller or new markets, while expansion stores are utilized for larger markets or markets with a special focus.

If you're already thinking, "oh no... all the extra administrative work with expansion stores... I can't handle it," you're not alone. That's precisely why we've developed an app that can automatically synchronize products and content across multiple shops. Want to know more about the app? Click here to read more about #SupremeSyncer app.

What is Shopify Markets?

Shopify Markets is a central part of Shopify's strategy to make global e-commerce the standard. As Shopify increases its focus on B2B and retail, their "global by default" tagline for Shopify Markets has been replaced with "A unified home for business expansion." You have access to Shopify Markets regardless of which Shopify subscription you have chosen.

Via your Shopify admin, you can add a new market and immediately begin customizing the content. You can read exactly how to add a new market in this guide: https://help.shopify.com/en/manual/international/managing

When you create a market in Shopify Markets, Shopify ensures that the technical SEO is taken care of. You need not fear duplicate content on Google or missing hreflang HTML tags.

Shopify Markets: Opportunities and Limitations

The launch of Shopify Markets was followed by an impressive roadmap of features on the way, and Shopify has lived up to their promises so far. New additions continue to be made, and at DTAILS, we keep a close eye on the developments. If you end up choosing expansion stores, you should still keep an eye on Shopify Markets just as you do with everything else in your business.

If it's your first time expanding into one or more new markets, Shopify Markets is a great choice. The setup is lightning-fast, and you get almost everything you need. You have the opportunity to test a new market before investing further.

With Shopify Markets, you can:

• Diversify product selection per market
• Automatically convert prices to all currencies
• Upload fixed prices per currency
• Add multiple languages
• Diversify content per market—like images, pages, sections, etc.
• Manage all markets from one webshop
• Associate multiple domains, subdomains, and folder structures

As easy as it is for you in the admin to add a new market, just as elegant is the customer journey out on your shop.

What does Shopify Markets cost?

The price for Shopify Markets varies depending on your chosen Shopify plan:

• Basic: 24 USD per month, includes 3 markets.
• Shopify: 69 USD per month, includes 3 markets.
• Advanced: 299 USD per month, includes 3 markets, with an additional cost of 59 USD per month for each additional active market.
• Plus: 2,300 USD per month and includes 50 markets without extra cost.

Check the latest prices here, and note that on top of the price, a fee is added for currency exchange and transactions. The percentage depends on which payment provider and Shopify plan you have chosen.

Selling internationally can vary greatly from shop to shop. Depending on how your business is structured, there may be limitations with Shopify Markets that necessitate choosing separate shops. Let's take a closer look at the main limitations of Shopify Markets.

Shopify Markets Limitations

1. Shopify Markets requires Shopify Payments

If you want to use Shopify Markets, you also need to use Shopify Payments. It is not possible to choose other payment providers.

The advantages of Shopify Payments include high stability, in-line payment (when you pay, you do not leave the checkout window), full integration in Shopify admin, full transparency over costs, and traceability of all payments.

However, Shopify Payments is not the cheapest payment solution on the market, and not all local payment methods are supported. It is currently only possible to get paid in the currency that is your shop's default currency. Shopify is working on changing this.

Moreover, Shopify Payments only gives you 7 days to capture payment for the order. This can create challenges for orders with items not in stock.

Note also that there are regions where Shopify Payments cannot be used, and therefore Shopify Markets will not work either.

2. Discounts and promotions are for everyone (or none)

When you use Shopify Markets, discounts and promotions apply to all markets. It is not possible to create a discount code that only applies to Denmark. So if you want to run a Mother's Day campaign in Denmark but not in Germany and Sweden, this is currently not possible with Shopify Markets.

3. Price management must be handled via upload

Shopify Markets supports the upload of prices in all currencies. However, only your default currency can be edited via Shopify admin (and therefore also bulk editing). If you want to set fixed prices in specific currencies, you must upload the prices manually or use an app. This also applies when you want to reduce prices for a period and need to display before/after prices.

You can choose to let Shopify Markets use automated currency conversion, making it easy for customers from various countries to shop in their local currency.

4. Not all apps support Shopify Markets

If you use apps as an important part of your shop, you should check if they are compatible with Shopify Markets. Although Shopify Markets have existed for a few years, not all apps support this extension.

5. Regional teams and highly differentiated content increase complexity

If you want content on two or more markets to be very different, and you even have a team responsible for a given market, then Shopify Markets is not the right choice. Only one person can work on the theme at a time. If multiple people edit the theme at the same time, the changes will overwrite each other. This also applies when using Shopify Markets.

Although much can be differentiated, it becomes quickly complex and overwhelming if there needs to be a significant difference in your markets.

6. Only one legal entity is possible

If, for legal reasons, you have established a US company and wish to conduct B2C sales in the USA with delivery from a local American warehouse, you must be able to receive payments in the US company. It is not possible to have different legal entities linked to your payment gateways on one Shopify shop.

When Shopify Markets isn't Sufficient

All in all, Shopify Markets is a great opportunity for a larger company to quickly test a new market, and for smaller businesses, it may be sufficient for now and perhaps forever.

But if your business is serious about selling to international markets, separate shops offer more options as each shop can be set up precisely as makes the most sense for your operation.

Separate Shops: Challenges and Considerations

We'll skip the opportunities for now, because with shop number 2 and additional shops, you naturally get everything you already know from shop number 1. But with more shops come a series of challenges and considerations that can affect your business strategy and cost structure.

• Increased costs for apps and tech stack: When you expand with more shops, you'll likely need to pay for more licenses for the apps you already use, such as your Email Marketing platform, ERP systems, or PIM integrations. It may be worth considering whether your vendors offer discounts for use on multiple shops.
• Bank accounts for new currencies: If you operate in different regions, it may be necessary to set up separate bank accounts to receive payouts in local currencies. This can also require additional administration and bookkeeping.
• Increased time spent on maintenance: Each additional shop requires its own maintenance, including updates, troubleshooting, and administration. It may therefore be advantageous to automate as many processes as possible.

Product Data Synchronization

The biggest challenge with a setup involving multiple shops is synchronizing data between them. Most companies have the same product range across markets and need a full copy of product data (and collections) in each shop.

Historically, larger clients have opted to store their data in a PIM system (Product Information Management), which increases complexity and costs. However, with a PIM system, you can centralize and standardize your product data, making it easier to manage and update information across multiple shops.

Content Synchronization

If the content on your shops needs to be mostly identical, with the main differences being language and prices/currency, maintaining and ensuring consistency is time-consuming.

As previously mentioned, synchronization can be handled with the help of the DTAILS #SupremeSyncer app, which automates the process and enables consistent content maintenance across all your shops.

A Future-Proof Setup with the Best of Shopify Markets and Expansion Stores

Very few aren't thrilled with the simple administration in Shopify Markets. Maintaining everything in one place is absolutely optimal for many businesses.

At DTAILS, we, therefore, often recommend a hybrid solution, allowing you to get the best of both worlds: Easy maintenance in one admin and all the possibilities that only an independent shop gives you. A hybrid solution utilizes the #SupremeSyncer app, allowing us to select a primary shop—a master shop where all data resides. In this master shop, all translations are placed, and only the relevant language and content are synchronized to a defined secondary shop. If a new market needs to be tested, it can quickly be added before potentially moving to its own dedicated shop.

In this way, you get a future-proof setup, so when Shopify Markets is ready to handle one or more (maybe all) of your markets, we can easily change the configuration.

Depending on how your other IT landscape looks, we can increase what is managed in your master shop. Call or write if you want to learn more.

Need to get your new markets up quickly? We can help translate your current shop. With our AI translator app, it goes fast.