Shopify Managed Markets Overhaul (Oct 14, 2025): What Sellers Must Know & Do

By AMZ Sellers Attorney®

Shopify Managed Markets Overhaul (Oct 14, 2025): What Sellers Must Know & Do

Executive Summary

• Shopify released updates to Managed Markets on Oct 14, 2025: new activations are processed via Shopify Payments, and payout cadence shifts to daily. :contentReference[oaicite:6]{index=6}
• Stores activated prior to Oct 14 will be migrated gradually; no sudden cutover required. :contentReference[oaicite:7]{index=7}
• Payout structure change from Flow Commerce’s 1st/8th/15th/22nd schedule to daily Shopify Payments may significantly impact cash flow and FX exposure.
• Feature updates (terms of service, review processes) accompany the changes. :contentReference[oaicite:8]{index=8}
• Sellers must evaluate which activation group they fall into and simulate impacts now to avoid surprises.

What Exactly Changed?

According to Shopify’s documentation, the Managed Markets update includes:

• Payout Processor Shift: New activations after Oct 14 will have payouts handled by **Shopify Payments** instead of Flow Commerce. :contentReference[oaicite:9]{index=9}
• Payout Frequency: Daily payouts now replace the old 4-times-monthly cycle. :contentReference[oaicite:10]{index=10}
• Feature & Terms Update: Updated Global-e terms, review protocols, compliance and duties handling. :contentReference[oaicite:11]{index=11}
• Migration Path: Pre-Oct14 stores will transition gradually; Shopify states no immediate changes forced. :contentReference[oaicite:12]{index=12}

Which Sellers Are Affected?

• Stores that **activate Managed Markets on or after Oct 14, 2025** fall under the new scheme.
• Stores active before Oct 14 are on the older regime for now and will be migrated later.
• Those reactivating after Oct 14 may also fall under the new rules (Shopify’s doc notes that reactivations are considered new). :contentReference[oaicite:15]{index=15}

Potential Impacts & Risks

• Cash-flow shift: Daily payouts increase volatility vs. prior fixed cycles.
• FX and conversion costs: More frequent conversions might incur additional exchange spread or fees.
• Compliance & KYC: Shopify Payments will likely require stricter identity / verification processes.
• Feature mismatch: Some legacy features tied to the old system may be deprecated or changed.
• Operational change burden: Finance, logistics, and cash accounting must adapt to the new timelines.

What Sellers Should Do Now

• Check your store’s Managed Markets activation date to know which regime applies to you.
• Simulate payout timing under the new model; adjust your working capital or cash reserve accordingly.
• Assess FX exposure and negotiation of conversion fees—daily conversions may amplify inefficiencies.
• Prepare your documentation (KYC, identity, bank) in advance in case Shopify Payments requests verification.
• Monitor Shopify updates on migration path timelines and impacted features.

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© 2025 AMZ Sellers Attorney®. For informational purposes only—not legal advice.