Changing the currency on draft orders in new Markets

Early access

The new functionality for Markets is in early access and is available only to certain stores.

If you sell internationally to different markets, then the local currency, pricing, duties, and taxes are determined by the market that's associated with the order. When more than one market is activated, the shipping address of the customer determines the market for the order. If the shipping address of your customer belongs to more than one market, then the applicable markets display in the Markets section of the draft order. You can't override what markets the customer is associated with from the draft order.

You can change the currency on a draft order. If you're using Managed Markets as a cross-border management tool, then you can select whether Managed Markets or your own store is listed as the merchant of record for the order.

You can create draft orders for customers within an existing market, customers outside of an existing market, and orders with no customer assigned to it. When no customer is assigned to a draft order, the order uses your store default values for currency and the backup region as the listed market.

Review the markets on a draft order

When you add a customer to a draft order, the relevant markets that are associated with a customer's shipping address display in the Markets section of the draft order. If no customer is added to a draft order, then there's no market associated with the order and the default pricing displays for all products.

Markets display only when they have a direct effect on the draft order. For example, markets that determine the currency or product catalog based on the customer's region are displayed in draft orders. Markets that affect only the online store theme don't affect orders, so they aren't displayed.

If a draft order was created by saving a cart from a Shopify POS location, then the retail location is listed as a relevant market.

Steps:

1. From your Shopify admin, go to Orders > Drafts.

2. Do either of the following actions:

   • Click an existing draft order.
   • Click Create order to create a new draft order.

3. In the Customers section, add a customer to the draft order.

4. In the Markets section, do any of the following actions:

   • Click the name of a listed market to navigate to the market's details page.
   • Click to navigate to the visual web diagram of the relevant markets.

Considerations for local currencies on draft orders

If you sell internationally, then the markets that are associated with the order are determined by the shipping address of the customer. Adding a customer to the order updates the pricing and displays your customer's local currency based on their associated markets.

Note

On draft orders that display a local currency other than your store currency, the foreign exchange rate is calculated when you create the draft order. This rate is fixed and used on the invoice regardless of whether the exchange rate changes. However, if you save the order as a draft and edit it afterwards, then pricing on the whole order is updated with the foreign exchange rate that's current at the time of the edit.

If you want to use a different currency for a draft order, then you can change the currency.

Before you change the currency for a draft order, review the following impacts of changing the pricing on an order:

• Taxes are included or excluded from item prices. For example, orders with the United States market exclude taxes from prices, but orders with the Germany market include taxes in prices.
• Tax rates vary by market. At checkout, if a customer changes the shipping address to an address that's outside the market, then the correct tax rate for the customer’s shipping address is charged, but the market on the order, with its tax included or excluded setting, is unchanged.
• Taxes and duties are determined by the shipping address of the customer, which can differ from the market that you select. For example, if your draft order has a Canadian shipping address, and you update the market to the United States market's pricing and currency, but you keep the Canadian shipping address, then the order retains the Canadian taxes and duties.
• If you use a third-party service to determine the foreign exchange rate for a market, then pricing on an order is determined by the service’s exchange rate. However, the rate that Shopify Payments uses to calculate your payout is based on the market that's selected in Shopify. Therefore, the amount charged on the order can differ from the amount you receive in payment. For more information, refer to currency conversions and exchange rates.
• Manufacturer Suggested Retail Price (MSRP): If you are obliged to sell a product at the MSRP in a customer’s market, then you could be in breach of contract if you switch markets and use an alternative market price.

Change the currency for a draft order

You can manually override the local currency on a draft order from the default currency that displays based on the market or markets associated with a customer's region. This offers additional flexibility for you to be able to ship to a customer's international address, but directly control what currency the customer pays in.

Note

On draft orders that display a local currency other than store currency, the foreign exchange rate is calculated when you create the draft order. This rate is fixed and used on the invoice regardless of whether the exchange rate changes. However, if you save the order as a draft and edit it afterwards, then pricing on the whole order is updated with the foreign exchange rate that's current at the time of the edit.

Steps:

1. From your Shopify admin, go to Orders > Drafts.

2. Do either of the following actions:

   • Click an existing draft order.
   • Click Create order to create a new draft order.

3. In the Markets section, click the Currency drop-down menu, and then select the currency that you want to display to the customer during checkout.

Change the merchant of record for a draft order

If you use Managed Markets as a cross-border management tool, then you can select whether Managed Markets or your own store is listed as the merchant of record for the order. By default, Managed Markets is selected.

Steps:

1. From your Shopify admin, go to Orders > Drafts.

2. Do either of the following actions:

   • Click an existing draft order.
   • Click Create order to create a new draft order.

3. In the Markets section, click the Merchant of record drop-down menu, and then select your preferred option.

4. Click Save.