Shopify Markets vs. Expansion Stores: Choose the Right Strategy for Global E-commerce

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

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

Choosing the right solution is crucial both economically and in daily operations. But how do you know which solution is right for your company? We 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 used for larger markets or markets with a specific focus.

If you're already thinking "oh no... all that extra administrative work with expansion stores... I can't handle it," you are not alone. And that's exactly why we have developed an app that can automatically synchronize products and content across multiple shops. If you want to know more about this app, click here and read more about the #SupremeSyncer app.

What is Shopify Markets?

Shopify Markets is a central part of Shopify's strategy to make global e-commerce the standard. With Shopify's increasing 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 the Shopify subscription you have chosen.

Through your Shopify admin, you can add a new market and immediately start 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 under control. You don't have to 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 so far kept their promises. New additions are continually being made, and at DTAILS, we are keeping a close eye on developments. Even if you end up choosing expansion stores, you should still keep an eye on Shopify Markets just as you evaluate everything else in your business.

If it's your first time expanding to one or more new markets, then Shopify Markets is a very good 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 – e.g., images, pages, sections, etc.
• Manage all markets from one webshop
• Attach multiple domains, subdomains, and folder structures

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

What does Shopify Markets cost?

The price of 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 extra active market.
• Plus: 2,300 USD per month and includes 50 markets at no extra cost.

Check the latest prices here, and note that there are additional fees for currency exchange and transactions. The percentage depends on which payment provider and Shopify plan you have selected.

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 key limitations of Shopify Markets.

Shopify Markets limitations

1. Shopify Markets requires Shopify Payments

If you want to use Shopify Markets, you must also 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 into Shopify admin, full cost transparency, and traceability on all payments.

But Shopify Payments is not the most affordable payment solution on the market, and not all local payment methods are supported. At present, it is only possible to receive payments in the currency that is your shop's default currency. However, Shopify is working to change this.

Additionally, Shopify Payments only gives you 7 days to charge for the order, which can create challenges for orders with items that are not in stock.

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

2. Discounts and promotions are for all (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, it is currently not possible with Shopify Markets.

3. Price management must be handled via upload

Shopify Markets supports uploading prices in all currencies. However, only your default currency can be edited via Shopify admin (and thus 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 lower prices for a period and need to display before/after prices.

You may choose to let Shopify Markets use automated currency conversion, which makes it easy for customers from different 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 has been around for a few years, far from all apps support this expansion.

5. Regional teams and highly differentiated content increase complexity

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

Although much can be differentiated, it quickly becomes complex and unwieldy if there has to be a large difference in your markets.

6. It is only possible to have one legal entity

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

 

When Shopify Markets is not adequate

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

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

Separate shops: Challenges and considerations

We skip the possibilities for now since with shop number 2 and additional shops you naturally get everything you already know from shop number 1. But with more shops also 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 will likely have 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 suppliers 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 receivege payouts in local currencies. This may also require additional administration and accounting.
• Increased time spent on maintenance: Each additional shop requires its own maintenance, including updates, troubleshooting, and administration. Therefore, it may be advantageous to automate as many processes as possible.

Synchronization of Product Data

The biggest challenge with a multi-shop setup is the synchronization of data between them. Most companies have the same product range across markets and need to have a full copy of product data (and collections) in each shop.

Historically, larger customers have chosen to place 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 is to be largely identical, and the main difference is the language and prices/currency, maintaining and ensuring consistency is time-consuming. 

As mentioned earlier, synchronization can be handled with the help of the DTAILS app #SupremeSyncer, which automates the process and allows you to maintain consistent content across all your shops. 

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

Few people are not 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, where you get the best of both worlds: Easy maintenance in one admin along with all the possibilities that only a standalone shop provides. A hybrid solution uses the #SupremeSyncer app, which allows us to select a primary shop - a master shop where all data resides. All translations are placed on this master shop, 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 on to its own dedicated shop. 

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

Depending on how your overall IT landscape looks, we can ramp up what is managed in your master shop. Call or write if you want to know more. 

If you need to quickly launch your new markets, we can help you translate your current shop. With our AI translator app, it goes fast.