Use real-time exchange rates for a frictionless customer checkout
So, your international customer has come all the way to the finish line, they are about to click the hallowed “confirm payment” button. But, hang on a second...
The customer realises that you don’t accept WeChat Pay. It’s enough of an excuse for him to click out of the browser and continue about his day.
What this eCommerce store should’ve known is that not providing WeChat Pay puts your store at a disadvantage.
Although many westerners may not be familiar with this digital payment platform, it has over one billion users! 46% of the Chinese population say that this is their favorite app. And this is not just in the banking category. In general. It’s a seriously big deal in China.
So what I’m saying with this example is that you need to know your target audience and their payment preferences. We’re going to run through the entire payment management process when going global, specifically for eCommerce merchants. And we’re starting with whether or not a multi-currency store will be best for your business.
Do I need a multi-currency Shopify store?
If you are going global, and have chosen specific markets to splash into, then providing this new audience with their native currency is a stellar tactic.
The best launches into new markets will be designed with care. And for customers, being able to interact with their native currency on your site is crucial.
Shopify, as of 2018, supports multi-currency stores for merchants using Shopify Payments. The currencies currently supported are:
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
- Euro (EUR)
- Great British Pound (GBP)
- Hong Kong Dollar (HKD)
- Japan Yen (JPY)
- New Zealand Dollar (NZD)
- Singapore Dollar (SGD)
- United States Dollar (USD)
- Danish Krone (DKK)
- Swedish krona (SEK)
It's important to note that Shopify applies a currency conversion rate to the converted amount. Shopify has entered into this venture by rolling out the currencies that will open up the most economic growth for customers.
Merchants using Shopify Plus have the option to apply a rounding rule for multi currencies. Say the initial calculation comes to $42.63, you can have the price rounded to $42.60 or $43.00 or even $43.99. So you can still apply your pricing strategies in the foreign currency without having to update them manually. This is the kind of time-saving features that we like; ones that don’t cut corners and produce the results you need.
Checkout in your customer's native currency
Previously merchants operating a single Shopify store could install a currency converter app, and this enabled customers to view their currency throughout the site. Although merchants were able to display native currencies across the store, the price reverts back to the store’s home currency once the customer has progressed through to check out.
Any inconsistencies in pricing can throw a customer, and at this late stage of the buying process, you want to do everything in your power to keep your customer cruising through the checkout process. Any disruptions is another hazard to order confirmation and can lead to avoidable abandoned shopping carts.
This is we recommend that you have seperate expansion stores so you can offer checkout in the currency of the customer’s location.
Which Shopify plan supports multiple storefronts?
You can purchase additional stores on any Shopify account, these are the international storefronts we’ve been talking about. However, the Plus package is built for international growth. It comes armed with:
- 9 expansion stores;
- A customer success manager;
- Shopify Plus Partner network.
I want to focus on this last feature because it is a major factor in the ease of international market entry. It’s your management suite that has a lot of in-built features, such as AvaTax, heavy-duty analytics and you can provide checkout on your own domain.
Which payment methods should I provide on international storefronts?
For this, we need to explore the data and see which providers are most popular.
And this is because 59% of customers don’t commit to a payment if their preferred payment option isn’t available.
Nielsen’s report shows that 53% of shoppers made a purchase with credit card in the last six months.
But this is completely dependant on geography. In the UK, 95% of online shoppers use credit cards when shopping, but look to their neighbours in the Netherland and usage drops to just 15%!
Shopify Payments can accept Visa, Mastercard, and Amex debit cards in Canada, the United Kingdom, Ireland, Australia, New Zealand, and Japan. In the US, you can set up JCB, Discover, and Diners Club debit cards payment methods.
You can also set up manual payment centres or integrate your Shopify store with a third-party gateway. Through these, you can accept payment via ApplePay, PayPal, AmazonPay and any other form that is popular in your market.
You can even accept payments in cryptocurrency!
It’s crucial that you look into local payment options.
As always, we’re trying to surpass customer expectations, but to do that, you must first meet them. It can be all too easy to get swept up in providing innovative experiences for your customers, but if you don’t do the basics well, then it’s unlikely that the more advanced brand interaction tools will be fully appreciated.
And setting up payment portals that are sharp and give your customer the options they need is a basic necessity in your global launch.
We have extensive experience helping brands become global. Contact us for assistance with internationalisation.