Wise for Shopify Sellers: A Guide to Reducing Fees & Faster Payouts
If you're a US-based Shopify seller with international customers, you're leaving money on the table. Every time you receive a payment in a foreign currency, platforms like Shopify Payments, Stripe, and PayPal take a significant cut through high conversion fees. Wise offers a powerful solution for e-commerce entrepreneurs to receive global payments, pay international suppliers, and ultimately increase their profit margins.
The Short Answer: Why Wise is a Game-Changer for E-commerce
Wise is the best financial tool for Shopify sellers operating internationally. It lets you receive payouts from Shopify Payments in multiple currencies using local bank details. You can then convert this money to USD at the real exchange rate, saving thousands in fees. You can also use your foreign currency balances to pay suppliers directly, avoiding conversion fees entirely.
The E-commerce Profit Drain: Currency Conversion Fees
When you sell a product for €100 on your Shopify store, you don't receive the full USD equivalent. Your payment processor (Shopify Payments/Stripe) and your bank will take a cut.
- Shopify Payments/Stripe's Conversion Fee: They typically charge a 1.5% - 2% currency conversion fee on top of the standard processing fee.
- Your Bank's Poor Exchange Rate: When the money is deposited, your US bank may convert it at a rate that is 2-3% worse than the real market rate.
On a €100 sale, you could lose $4-$5 just to currency conversion. For a store doing $10,000/month in international sales, that's up to $500 in lost profit every month.
The Wise Solution: Your Global Business Account
Wise solves this by giving you local bank accounts in major markets. When you open a EUR balance, Wise gives you a unique IBAN. You can add this IBAN to your Shopify Payouts settings. Now, all your European sales are deposited in EUR into your Wise account. There are no conversion fees from Shopify or your bank, because it's a simple local payout.
Stop losing your profit margin to hidden fees.
Open a Wise Business Account →The Ultimate E-commerce Workflow with Wise
Set Up Your Wise Business Account
Create your Wise Business account online. Open currency balances for the markets you sell in (e.g., EUR for Europe, GBP for the UK, AUD for Australia).
Connect Wise to Shopify Payments
In your Shopify admin, go to Settings > Payments. Under Shopify Payments, go to your Payouts settings. Add the local bank details provided by Wise for each currency you accept. For example, add your Wise IBAN for your Euro payouts.
Receive Payouts Without Forced Conversion
Shopify will now deposit your sales revenue directly into the corresponding currency balance in your Wise account. You have now bypassed the expensive, automatic currency conversion.
Strategically Manage Your Funds
You now have a pool of foreign currency. You have two powerful options:
- Pay Suppliers: If you have a supplier in Europe, use your EUR balance to pay them directly. You avoid all conversion fees on both ends of the transaction.
- Convert to USD on Your Terms: When you're ready, you can convert your EUR balance to USD inside Wise at the real mid-market exchange rate with a tiny, transparent fee, and then withdraw to your US bank.
Frequently Asked Questions for Shopify Sellers
Can I use Wise for my US-based sales too?
Yes. You can add your Wise USD account details (routing and account number) to Shopify Payments and receive all your domestic payouts to Wise. This is useful for centralizing your business finances in one place.
What about paying for ads or software in foreign currency?
This is a major benefit. You can get a Wise Business debit card or create virtual cards linked to your currency balances. Use your EUR card to pay for a European marketing service or your GBP card for a UK-based app, avoiding the 3% foreign transaction fees that most US credit cards charge.
Is this complicated to set up?
No. The setup process is straightforward. Opening the Wise account takes about 15 minutes. Updating your payout information in Shopify takes less than 5 minutes per currency. The long-term savings are well worth the initial setup.
Conclusion: An Essential Tool for Global E-commerce
For any Shopify or e-commerce seller with an international audience, Wise is not just a "nice-to-have"—it's an essential tool for maximizing profitability. By taking control of your currency conversions, you can save thousands of dollars per year that would otherwise be lost to fees. Integrating Wise into your e-commerce financial stack is one of the smartest and easiest steps you can take to grow your global business.
Related Reading
- Wise for Freelancers in the USA
- Wise vs PayPal: A Detailed Fee & Speed Comparison
- How to Use Wise for Stripe Payouts
Community Discussion
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