We're a Canadian business which sell 85% to the US. We've been looking into setting up own our webstore for a while and looked into Shopify to easily manage our eBay and Amazon market inventory at one spot including our own store.
However, I have a dilemma whether to sign up on Shopify US or Canada. As I've seen many sellers debate whether to set up 2 stores or multicurrency etc, we're looking forward to the feature which could let us set separate pricing depending on the country. Therefore, at the moment we would probably choose to sell in USD on Shopify. However, should I then sign up on Shopify US or Canada? Even if I set up to charge credit card in USD, would the US credit card charge the "foreign transaction fee" on my customers? As a Canadian, I know our Canadian credit cards do not charge this fee (or just merge it in the total), but my US credit card had had charged this fee even though I bought in USD on a (I thought) US website.
I do not want my customer to be unpleasantly surprised with the extra charge. However, I do want the USD I received to be deposited into my Canadian US Dollar bank account. Could someone answer this question?
Elias here with Shopify Support. Thank you for reaching out.
Typically, if you're using Shopify Payments, we'd recommend setting up your store to sell in multiple currencies. Selling in multiple currencies with Shopify Payments in Canada allows you to change your payout currency to CAD or USD, so you can receive your funds in USD. Shopify Payments in the US can also sell in multiple currencies, but the payouts is only in USD.
Since the primary concern is the foreign transaction fees, you can set up your store on Shopify US and use a Canadian USD bank account. This way, your US customers won't be charged for foreign exchange fees. However, I do need to clarify that I have seen foreign exchange fees on my Canadian credit card on US purchases before, so it's important to note that your Canadian customers may end up seeing the foreign exchange fees on their transactions.
Whether you chose to sell in USD with Shopify US or Canada, you'll be able to connect your Canadian USD bank account and receive the funds in USD with both scenarios. However, the best option to avoid unpleasantly surprising your customers (US and Canada) and to be able to set separate pricing based on countries is to open separate stores. As you're already aware, many businesses do this and they often incorporate multiple domains (eg. .com and .ca) as well.
I hope this helps! If you have any other questions on this topic, don't hesitate to let me know!