Shopify is expanding its Managed Markets cross-border ecommerce offering to Canadian merchants, giving eligible retailers and brands access to infrastructure designed to simplify international selling as duties, taxes and customs requirements become more complex.
The Canadian expansion is being supported by Global-e Online, the cross-border ecommerce technology company behind the merchant-of-record infrastructure used by Shopify Managed Markets. Global-e executives said during the company’s second-quarter earnings call this week that opening Managed Markets to merchants in Canada and the United Kingdom is contributing to increased interest outside the United States.
Canada remains an early-access market, with Managed Markets currently available to certain eligible Shopify stores rather than the company’s entire Canadian merchant base. Global-e had already identified Canada as an early-access market in its first-quarter results in May, with the company now reporting increased adoption of the upgraded platform.
For international transactions processed through the Canadian version of Managed Markets, Global-e Canada E-Commerce Ltd. acts as the merchant of record and exporter of record. The Canadian retailer continues to operate its Shopify store, manage inventory and fulfil orders, while Global-e handles much of the infrastructure surrounding the international transaction, including duties and import taxes, international tax registration and remittance, customs requirements, localized currencies and payment methods, and elements of international shipping.
The model gives eligible Canadian merchants access to capabilities that larger retailers have traditionally had to build internally or assemble through multiple outside providers.
Managed Markets V2 Expands into Canada
Global-e said the rollout into Canada and the U.K. is part of a broader effort with Shopify to increase adoption of Managed Markets following the launch of version 2.
“We are seeing an increase in adoption following the rollout of V2,” Global-e co-founder and president Nir Debbi told analysts, adding that availability in Canada and the U.K. was increasing interest outside the U.S.
The company completed the migration of existing Managed Markets merchants from version 1 to version 2 during the second quarter and said early feedback has been positive. Management has characterized the newer version as an improvement over the original offering, which encountered friction that limited broader adoption.
One of the changes is a significantly streamlined onboarding process. Earlier versions required merchants to submit an application for review, with that process later shortened to approximately 24 hours. Global-e CEO and co-founder Amir Schlachet said the vast majority of eligible merchants can now move through onboarding within the same session.
“As soon as they click that they’re interested in Managed Markets, the process is done almost instantaneously, and they can go live within a very, very short time span,” Schlachet said.
Shopify and Global-e are also developing managed pricing and other features intended to improve conversion and provide international shoppers with a more localized purchasing experience. The companies are working to apply more of the practices Global-e has developed with larger enterprise merchants to businesses using Managed Markets.
For smaller and mid-sized Canadian brands, that can reduce the amount of specialized customs, taxation and cross-border commerce expertise required internally when entering additional markets.
U.S. Trade Changes Add Complexity
The expansion into Canada comes at a time when selling into the United States has become more complicated for cross-border ecommerce merchants.
The U.S. suspended duty-free de minimis treatment for shipments from all countries effective August 29, 2025. The change increased the importance of accurately determining duties, country of origin, Harmonized System classifications and the total landed cost of goods entering the country, including for lower-value ecommerce shipments.
Canadian goods that meet applicable rules of origin can still qualify for preferential tariff treatment under the Canada-United States-Mexico Agreement, but accurate product information and documentation are important in determining eligibility.
Managed Markets automates several parts of that process, including product classification and calculations for duties and import taxes. It can also incorporate cross-border costs into international pricing, support localized currencies and payment methods, and handle international tax registration, collection and remittance for eligible transactions.
Those functions are particularly relevant to Canadian merchants looking to the U.S. for growth while navigating a more demanding import environment.
Access Remains Limited
Managed Markets is not yet available to every Canadian Shopify merchant. Shopify’s eligibility requirements include operating a Canadian business with a qualifying Canadian location and fulfilment setup, while merchants must use Shopify Payments and a supported Shopify tax configuration.
There are also restrictions involving certain store structures and business models. International subscriptions and Shopify B2B transactions are not currently supported through Managed Markets, making the offering most directly applicable to consumer-facing merchants selling physical products internationally.
Global-e sees room for the Canadian business to grow as availability expands. Schlachet told analysts that Shopify has a large and growing population of merchants in Canada and the U.K. that could ultimately be relevant to Managed Markets. The U.S., Shopify’s largest market, was the initial focus for the offering before expansion into additional countries.
Cross-Border Sales Continue to Grow
The rollout comes alongside strong growth in Global-e’s broader international commerce business. Gross merchandise value reached US$2.09 billion during the second quarter of 2026, up 44 per cent from a year earlier and marking the first time the company surpassed US$2 billion in quarterly GMV outside the peak holiday period.
Revenue rose 39 per cent to US$299 million, while adjusted EBITDA increased 62 per cent to US$62.4 million. Global-e raised its full-year outlook and now expects 2026 GMV of between US$8.81 billion and US$9.11 billion, with revenue forecast at between US$1.305 billion and US$1.355 billion, including the expected contribution from its recently acquired Passport business.
Management said same-store sales growth across its merchants was running above historical levels during the quarter, with consumer demand remaining resilient across most destination markets. Newer merchants were also ramping more quickly than expected.
At the same time, shoppers appear to be becoming increasingly responsive to promotional periods. Schlachet said some larger merchants saw the increase in volumes generated by seasonal sales events reach more than 25 per cent above the increase produced by comparable promotions in the second quarter of 2025.
Debbi said Global-e has seen stronger reactions to promotions over the past two or three years, with some consumers increasingly planning their shopping around major sales events. The pattern points to healthy international ecommerce demand across the company’s merchant base, alongside consumers becoming more deliberate about when they make purchases.
Passport Adds Logistics Capabilities
Global-e is also extending its international logistics operations following its acquisition of Passport, a U.S.-based cross-border ecommerce logistics company. The transaction closed July 1 for approximately US$350 million upfront, split roughly equally between cash and Global-e shares, with up to an additional US$75 million tied to Passport’s 2026 financial performance.
Passport operates an asset-light, multi-carrier logistics network spanning cross-border, domestic and last-mile deliveries. Global-e said the acquisition adds capabilities including direct injection and consolidated returns while allowing it to continue offering Passport’s non-merchant-of-record logistics services to a broader range of businesses.
Passport is expected to generate more than US$100 million in revenue this year. Global-e is integrating the business into its existing carrier network and expects the combination to expand the shipping and post-purchase services it can provide alongside its existing pricing, payments, duties and compliance infrastructure.
Canadian Retailers Look Beyond the Domestic Market
Canadian retailers looking internationally still need products that resonate in other markets, effective customer acquisition, inventory and the ability to fulfil growing order volumes. Managed Markets does not address those fundamental retail challenges, but it can reduce the tax, customs, payments and trade infrastructure that a merchant needs to assemble independently.
Canada remains in the early stages of the Managed Markets rollout, making adoption among Canadian merchants worth watching as Shopify expands availability. If Global-e’s early indications translate into broader uptake, international expansion for more Canadian ecommerce businesses could increasingly begin from the same Shopify environment they already use to sell domestically.
