Shopify Markets integration with Avalara for cross-border trade compliance solutions

Avalara Powers Shopify Markets Duty and Import Tax Feature Boosting Customer Delivery Experiences

Avalara announced it will power the new duty and import tax features of Shopify’s global commerce hub, Shopify Markets.

Shopify Markets‘ new duty and import tax feature uses Avalara’s technology to create landed cost pricing that determines duty and import tax requirements for more than 180 countries.

Furthermore, Avalara has expanded its cross-border capabilities with the acquisition of 3CE Technologies, a solutions provider of Harmonized System (HS) commodity classification codes and verification services to private businesses and government agencies.

Addressing Cross-Border Compliance for Shopify Merchants

According to eMarketer, global eCommerce continues to rise rapidly, with expected sales to top $5 trillion in 2021 as more consumers shop online, and more businesses take advantage of the ease of selling products online.

Shopify merchants generated $20 billion in cross-border sales in 2020 alone and to take advantage of the cross-border opportunity, online businesses need tools that can help identify, create, and manage international markets with minimal barriers.

When it comes to cross-border compliance, businesses must ensure customs duties and import taxes are calculated accurately at checkout to reduce compliance risks and avoid negative customer experiences due to surprise fees at delivery.

Shopify, now a global commerce platform, developed a cross-border product to help its more than 1.7 million merchants expand internationally.

With Avalara’s new patent-pending Cross-Border Estimated feature of Avalara AvaTax Cross-Border, now natively available in Shopify Markets, merchants can calculate the appropriate duty and import tax fees at checkout, without requiring tariff codes.

Avalara Cross-Border Estimated benefits include:

  • Improved accuracy of duty and tax estimates: Calculate costs with confidence by leveraging Avalara’s industry-leading artificial intelligence engine and global compliance content database.
  • Enhanced checkout experience: Provide customers with landed cost estimates in the cart in real-time to reduce unexpected costs at delivery.

“The power and promise of the internet was for businesses to reach customers anywhere, anytime. eCommerce makes that a reality for buyers and sellers. However, cross-border commerce comes with increased compliance complexity that can create risk for merchants. Shopify Markets provides merchants with the automated duty and import tax capabilities of Avalara’s cross-border solutions to streamline the checkout process and provide estimates to customers in cart, minimizing surprise costs, and reducing compliance risk.”

Scott McFarlane, CEO and co-founder at Avalara

Bolstering HS Code Classification With 3CE Technology Acquisition

By acquiring 3CE, Avalara expands its current cross-border compliance offerings by further automating its HS code classification services and self-service capabilities for businesses of all sizes as well as government and manufacturing customers.

“Integrating 3CE’s HS code classification engine enables Avalara to further enhance our cross-border solution, which will allow us to make it easier to sell anywhere in the world across new industries and use cases.”

Craig Reed, general manager of cross-border at Avalara

“This acquisition brings together best-in-class HS classification technology to automate the onerous process of identifying and mapping codes for cross-border transactions,” added Randy Rotchin, president and CEO of 3CE Technologies.

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