How do I set up location-based pricing?

Use Shopify Markets or a pricing app to set market-specific prices.

Is location-based pricing legal?

Generally yes, but check local laws — some regions restrict price discrimination.

Does location-based pricing increase revenue?

Yes — market-appropriate pricing captures more revenue than one-price-fits-all.

How is this different from multi-currency?

Multi-currency shows the same price in different currencies; location-based pricing sets different prices per market.

Glossary Term

L

Location-Based Pricing

Q: What is location-based pricing in Shopify?

Adjusting product prices based on the customer's geographic location.

Adjusting prices by customer location — market-appropriate pricing for global selling.

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Key Takeaways
Location-Based Pricing adjusts prices by customer location.
It lets you charge market-appropriate prices in different countries.
It maximizes revenue globally — higher in premium markets, lower in price-sensitive ones.
It recognizes that one-price-fits-all leaves money on the table.
It's part of selling globally.

Overview

Location-Based Pricing is the practice of adjusting product prices based on the customer's geographic location. On Shopify, it lets you charge market-appropriate prices in different countries — higher in premium markets, lower in price-sensitive ones — maximizing revenue globally.

Location-based pricing recognizes that a one-price-fits-all approach leaves money on the table. A product priced for the US market may be too expensive in India and too cheap in Switzerland. By adjusting prices by location, you capture the right revenue in each market.

Location-based pricing pairs with multi-currency checkout (which handles the currency side), geo-targeting (which detects location), and international shipping for fulfillment. It's part of selling globally.

1

Why Location-Based Pricing Matters for Shopify Merchants

1
Market-Appropriate
Charge what each market can bear — higher in premium markets, lower in price-sensitive ones.
2
Maximized Revenue
Capture the right revenue in each market instead of leaving money on the table.
3
Competitive Globally
Local pricing lets you compete with local sellers in each market.
4
Purchasing Power Parity
PPP pricing makes your products accessible in lower-income markets.
5
Shipping Cost Coverage
Adjust prices to cover varying shipping costs by location.

2

Implementing Location-Based Pricing

1
Use Shopify Markets
Shopify Markets supports market-specific pricing and currencies.
2
Research each market
Understand what customers in each market can and will pay.
3
Factor in costs
Account for shipping, taxes, and duties when setting local prices.
4
Use geo-targeting
Detect shopper location with geo-targeting to show the right price.
5
Test and adjust
Monitor performance per market and adjust prices based on results.