Overview of Managed Markets

Managed Markets makes it easy to start selling to new international markets and reduces the complexity of cross-border selling. Managed Markets takes care of local regulations, taxes, duties, international shipping, and localization for each international market. Learn more about Managed Markets features and how they compare to International.

To use Managed Markets, your store needs to be on the Basic Shopify plan or higher, and have an online store.

Pricing

Managed Markets has the following fees for international orders:

• A 6.5% per transaction fee that includes payment processing fee.
• A 2.5% currency conversion fee, also known as the FX fee. You can adjust your product prices for international markets to be higher or lower based on your preferences.

Note

By default, a 2.57% conversion fee is applied to your base product prices. This FX fee value is determined using the formula 2.5% / (1 - 2.5%) = 2.57%, and paid by your customers. After an order is placed, the 2.5% conversion fee is applied on the gross order total, which is paid by you. This difference ensures your FX fee is fully covered by the customer.

Managed Markets doesn't have a monthly fee, and there's no set time period that you need to commit to using Managed Markets. You can stop using Managed Markets at any time.

Note

Using an external fulfillment service might incur additional fees. Contact your fulfillment service for information if you're not sure whether your service charges additional fees.

If you use B2B, then your B2B orders aren't compatible with Managed Markets and the transaction fee isn't applied to your international B2B orders.

Merchant of record

A merchant of record is the legal entity responsible for selling products to a customer, and for adhering to local laws and regulations in another region or country. Unless another party such as Global-e is hired to take on these responsibilities, most merchants act as their own merchant of record. When you act as your own merchant of record, you're responsible for registering for and remitting taxes, arranging to accept local methods of payment, and organizing shipping and fulfillment.

With Managed Markets, Global-e manages the complexities of selling to other countries or regions on your behalf, including remitting tax to local authorities, accepting local methods of payment, and managing duties and import tax, allowing you to start selling to new international markets quickly. When using Managed Markets, you don't need tax registration in the countries you sell to. Global-e provides the tax registration, allowing you to comply when selling internationally.

Harmonized System (HS) codes

In Managed Markets, HS codes are automatically assigned to your products and might differ from the ones that you initially input. These codes are adjusted based on country-specific restrictions to facilitate the smooth delivery of orders with duties paid. This ensures compliance with import regulations and simplifies the process of shipping products internationally. For more information on HS codes and their assignment in Managed Markets, you can refer to collecting international duties and import taxes at checkout.

Managed Markets benefits

When you sell internationally, you need to take care of multiple complexities, such as shipping, taxes, duties, and product restrictions depending on the destination country. Managed Markets can help you reduce these complexities and handle them for you. Review the following benefits of using Managed Markets when selling internationally:

• Product restrictions and local laws: Managed Markets complies with local laws for cross-border products and restricts certain products to specific destinations. Managed Markets also creates commercial invoices and remits them where needed. To learn more, refer to the Managed Markets Merchant Service Terms.
• Guaranteed currency conversion rate on refunds made within 30 days of the transaction: Managed Markets ensures that you can refund orders at the currency conversion rate that was given at the time of purchase within 30 days to avoid currency rate fluctuations.
• Guaranteed duty and taxes amounts at checkout: The duty and tax amounts that are displayed at checkout to your customers are guaranteed. This means that even when the amount charged by customs is different, Managed Markets covers the difference and you don't have to pay any additional fees.
• Tax filing registration in local destinations: Managed Markets handles local destinations tax filing responsibilities for your Managed Markets orders.
• Fraud management: Every order on Managed Markets is automatically reviewed for fraud and given chargeback protection. There are some rare chargeback cases that aren't covered by Managed Markets that you're responsible to handle yourself. To learn more refer to Fraud and chargebacks.
• Increased customer conversion: Managed Markets supports features such as Shop Pay, local payment methods in customers' local countries, and shipping with pre-paid duties, which can help increase your customer conversion rates.
• Enhanced customer experience for higher customer retention rates: You can offer delivered duty paid (DDP) shipping at checkout. Your customers don't have to pay any extra fees at the time of the delivery. This lets you communicate exact shipping fees without any surprise fees, which can help with cart conversion.
• Customer address validation at checkout: Managed Markets checks whether the address that your customer adds during checkout is valid.

To learn more about Managed Markets features, refer to the Comparing International and Managed Markets features.

Flow of funds

Managed Markets features are powered by Global-e. After an international Managed Markets order is placed in your store, Global-e processes the transaction and holds the money in their account.

When Global-e goes across the border, they act as your merchant of record. Global-e holds the funds to remit the costs to proper authorities that are involved in the cross-border commerce transaction.

After Global-e remits all the costs, such as taxes and duties, you receive a payout of the remaining money.

Getting paid

Your transactions for fulfilled Managed Markets orders are collected and combined to a payout on the 1st, 8th, 15th, and 22nd day of each month. A payout is sent to your bank account within 1-3 business days. Sometimes it can take a few additional days for the funds to become available in your bank account.

You receive payouts in USD and only for fulfilled orders. For more information about payouts, refer to Getting paid for Managed Markets orders.

Shop Pay

If you have checkout extensibility activated on your store, then you can use Shop Pay for your international markets with Managed Markets. Your international customers can use their Shop accounts for express checkout.

Local payment methods

With Managed Markets you can use more local payments methods for markets worldwide. For example, if you're selling products to customers in Denmark, then those customers can pay for products with Klarna using DKK currency.

New local payment methods are continuously being added to Managed Markets. Review the following table to learn more about currently available local payment methods, their geographic coverage, and available currencies:

Managed Markets local payment methods

Payment method	Country	Currency
Klarna	Austria, Belgium, Finland, France, Germany, Ireland, Italy, Netherlands, and Spain	EUR
	United Kingdom	GBP
	Denmark	DKK
	Norway	NOK
	Sweden	SEK
	Canada	CAD
PayPal	In all supported countries	AUD, BRL, CAD, CZK, DKK, EUR, HKD, HUF, ILS, JPY, MXN, TWD, NZD, NOK, PHP, PLN, GBP, RUB, SGD, SEK, CHF, THB, and USD
Sofort	Austria, Belgium, and Germany	EUR
	Switzerland	CHF
iDEAL	Netherlands	EUR

Fraud and chargebacks

Every Managed Markets order is checked for fraud and is given chargeback protection.

However, in the following cases you're responsible to handle chargebacks yourself:

• Friendly fraud: Friendly fraud, also known as chargeback fraud, usually occurs when your customer makes a purchase with their credit card, receives the product, and then disputes the charge with their credit card company claiming that the transaction was fraudulent or unauthorized. Another case of friendly fraud is when Managed Markets rejects your order for fraud, but you still ship the package.
• Service error: When your customer disputes the charge with their payment provider, because the customer believes they're entitled to receive a refund but you don't provide one, you or your fulfillment partner doesn't fulfill an order, or the item received is different than as described on your store.
• Fulfillment issue: When your order isn't delivered by the shipping carrier and might be lost.
• Dangerous goods shipped by mistake: When you add a dangerous item, not part of your product catalogue approved for Managed Markets, to a package by mistake and ship it.