Quick Summary
Did you know, according to a research, over 92% of shoppers like to purchase their favorite products in their local currency? Imagine a guy trying to buy a product in India, only to be met with prices in US dollars. They may find and confuse the prices to be steep, leading to cart abandonment and lost sales.
But Shopify lets you change the currency, i.e. transactional currency as well as display price format. You can also change the currency according to the market.
Through this blog, I’ll explain how the Shopify experts change the currency for the best results. And we’ll see a few practices for best multi-currency eCommerce. Let’s begin.
This one is the primary currency in which you set the prices for all your products. By default, transactions are processed in your store currency. Your sales reports and financial data within Shopify are displayed in your store currency.
Here’s how you change the store currency on your Shopify eCommerce website.
Step 1: In your Shopify admin, click on “Settings” in the bottom left corner.
Step 2: Select “General” from the settings menu.
Step 3: In the “Store defaults” section, find “Currency display” and click the “…” button. Then, select “Change store currency.”
Step 4: Choose your desired currency from the list.
Step 5: Click “Save”.
Remember, changing the currency after sales have been made can affect your financial records, reports, and potentially even refunds.
The display price format in Shopify refers to how your product prices are presented to customers on your online store. Here’s how you change the format.
Step 1: In your Shopify admin, click on “Settings” in the bottom left corner.
Step 2: Select “General” from the settings menu.
Step 3: In the “Store details” section, find “Currency” and click the “…” button, then select “Change formatting”.
Step 4: You’ll see four text boxes:
Within these text boxes, you’ll use specific codes to replace the {{amount}} (represents the numerical price) and {{amount_no_decimals}} (displays the price without any decimal places).
Shopify Markets is a feature that allows you to create specific settings for different regions or countries where you sell. Here’s how you proceed.
Step 1: In your Shopify admin, click on “Settings” in the bottom left corner.
Step 2: Select “Markets”.
Step 3: Choose the specific market you want to adjust the currency for.
Step 4: Click on “Products and pricing”.
Step 5: In the “Pricing” section, you’ll find a “Base currency” dropdown menu. Select the desired currency for that market.
If you want customers to see prices in their local currency within that market (especially for multi-country markets), check the option “Show prices to customers in their local currency”.
Step 6: Click “Save”.
If you are trying to create the best multi-currency marketplace, using Shopify Payments is an excellent option. It simplifies the process and often offers better exchange rates.
Operating a Shopify store with multi-currency functionality can significantly boost your international sales. However, it’s crucial to implement it correctly to avoid issues and maximize its benefits. Let’s look at a few best practices:
Use Shopify Payments (Recommended)
Shopify Payments simplifies multi-currency management by automatically converting prices and handling transactions in the customer’s local currency. This reduces complexity and often provides better exchange rates than third-party apps.
Enable “Show prices to customers in their local currency”
Within each market in Shopify Markets, ensure this option is enabled. This ensures customers see prices in their own currency based on their location, creating a more familiar and comfortable shopping experience.
Choose Between Automatic and Manual Exchange Rates
For most businesses, automatic exchange rates are preferable for ease of use. However, if you have very tight margins or are concerned about rapid currency fluctuations, manual rates might be necessary.
With Shopify, you can opt for automatic updates, which means exchange rates will be updated based on current market values. This is convenient but means your prices will fluctuate.
Or you can set the exchange rates yourself. That provides more control but requires regular monitoring and updates to stay accurate. Consider using a currency converter tool to help you.
Consider Pricing Strategies for Different Markets
Don’t just convert prices directly. Consider factors like:
Consider adjusting prices slightly (e.g., ending in .99 or .95) to align with local pricing conventions.
Optimize Currency Display Formatting
Ensure currency symbols, decimal separators, and thousands separators are correctly formatted for each market to avoid confusion. Use the appropriate HTML codes in your Shopify admin to customize the display.
Provide Clear Communication
Be transparent about your pricing and currency conversion policies. Consider adding a currency selector to your store, although Shopify often handles this automatically based on location. Include information about currency conversion in your FAQs or shipping policy.
Legal and Tax Considerations
Consult with a tax professional to understand the tax implications of selling in multiple currencies in different countries. Ensure you comply with all local regulations regarding pricing, currency conversion, and sales.
If you want help building the best multi-currency marketplace, get our expert Shopify development services. We’ll ensure your store provides a seamless experience for your international customers and drives global growth.
Changing your store currency after sales have been made can complicate things. This is why contacting Shopify support is crucial in this scenario. They can help you navigate the potential issues with past orders, reports, and refunds.
No, but it’s highly recommended. It simplifies the process significantly by handling currency conversion automatically. You can use third-party apps, but they often add complexity and fees.
You can customize the currency formatting in your Shopify admin under Settings > General > Currency. You’ll use specific HTML codes to define the display.
Mastering currency management in Shopify is essential for any business looking to expand its global reach and provide a seamless shopping experience for international customers.
For most merchants, leveraging Shopify Payments and its built-in multi-currency features is the most straightforward and efficient approach. You can display prices in customers’ local currencies while receiving payouts in your store’s base currency. It can simplify transactions and minimize the complexities of currency conversion.
But if you want advanced assistance with the currency and other payment-related stuff, connect with us today!
Ankur Shah is a tech-savvy expert specializing in eCommerce solutions. With a deep understanding of WooCommerce and Shopify, he helps businesses optimize their online stores for success. Whether it's implementing new features or troubleshooting issues, Ankur is your go-to guy for all things eCommerce.
