International pricing for Managed Markets

When duties and taxes are included in prices for a market, the prices on your product pages are updated to display a price to customers that's inclusive of import tax, duties, and Managed Markets transactional fees. A message is also displayed indicating that duties and taxes are included in the displayed price.

Those prices are calculated as in the following example:

At checkout, duties are never displayed as a separate line item. A message is displayed informing customers that the total already includes duties, and that there are no additional charges on delivery. For tax-exclusive countries such as Canada, tax is displayed as a separate line at checkout. For tax-inclusive countries, tax is included in the price and no separate line is added. The tax amount is displayed to customers in compliance with fair pricing regulations.

Your prices are also set to cover international transaction fees and ensure you make the same margin in all markets, but this isn't conveyed to your customers.

When duties and taxes are dynamically included in prices by Managed Markets, prices might be rounded up or down by as much as 2.5% in order to reach an attractive value. For example, €204.38 would be rounded down to €200.00 even. This rounding doesn't affect how much you get paid for an international order. Rounding doesn't affect how much you get paid for an international order, even when a price is rounded down.

To check how these adjustments affect your product prices, you can use the View as feature on any product page in your Shopify admin. Select a country to preview the adjusted price for customers in that market. Refer to Using the View as feature for products to learn more.

Managed Markets sets your prices to cover duties and taxes, pays you out at your domestic prices, and guarantees that the correct duties and taxes are paid to the relevant authorities.

The included duties and taxes are calculated as an average for each destination country, not as a single average across all countries. For a new store, or a store with few international orders, the estimate starts from an average for stores in your category, then moves toward your own realized duties for each country as your orders come in. This generalized starting point can sometimes make your international prices either lower or higher than the duties that are actually owed. If most of your catalog qualifies for duty-free treatment under a trade agreement, then your prices might be higher initially until the average adjusts.

After an order has been placed in a market where duties and taxes are included in prices, you can review the charges for each product in the order to determine how the customer prices were calculated.

Steps:

1. From your Shopify admin, go to Orders.

2. Click the order that you want to review.

3. In the payment section, next to the Subtotal, click X items.

A popup is displayed that indicates how the customer prices were calculated.

Your payout is calculated by adding the prices for your products and shipping charges before they're adapted by Managed Markets. Because your customer pays for import tax, duties, foreign exchange (FX) fees, and Managed Markets fees directly, the only fee deducted from your Managed Markets payout is the Shopify Payments fee. Refer to Calculating payouts for Managed Markets to learn more.

Including duties and taxes in prices suits most stores that sell to markets where prepaid duties are required, and customers who expect one complete price. Your customers get price clarity, avoid surprise fees on delivery, and your margins stay consistent without country-by-country price management. This helps most when your duty rates vary across your catalog and across the de minimis threshold.

When you turn off this feature, the Managed Markets fee is no longer added to your prices automatically, but the foreign exchange fee continues to be added when conversion occurs. Duties are still guaranteed at checkout, so if customs assesses a different amount, then Managed Markets covers the difference.

Including duties and taxes in prices requires local currencies at their guaranteed exchange rate, so it can't be combined with a manual exchange rate for a market. To adjust your prices for a specific country, use catalog price adjustments instead of a manual exchange rate.

Including duties and taxes in prices is active by default for your markets when you activate Managed Markets. If you've turned it off for a market, then you can turn it back on in your market settings.

Steps:

1. From your Shopify admin, go to Markets.

2. Click the market that you want to turn on duties and taxes in prices for.

3. In the Customize section, click the setting for Taxes and duties.

4. Click the Include duties and taxes in prices dynamically by region toggle to turn it on.

5. Click Done.

6. Click Save.

If you want to manage a market's pricing manually, then you can turn off duties and taxes in prices at any time. After you turn it off, you can choose whether duty and taxes are added in checkout or assumed to be included in your prices. The Managed Markets fee is no longer be automatically added to your prices. The foreign exchange fee continues to be added when conversion occurs.

Steps:

1. From your Shopify admin, go to Markets.

2. Click the market that you want to turn off duties and taxes in prices for.

3. In the Customize section, click the setting for Taxes and duties.

4. Click the Include duties and taxes in prices dynamically by region toggle to turn it off.

5. Select your preferred configuration for Tax display and Duty display

6. Click Done.

7. Click Save.