Many novice merchants are not clear about the platform account categories when they first enter cross-border e-commerce. Lazada is one of the largest online shopping platforms in Southeast Asia. If your cross-border goal is to point to Southeast Asia, then Lazada must be your first choice. Then let the editor show you the difference between Lazada local stores and cross-border stores!
1. Introduction to local stores and cross-border stores
1. What is a local store?
As an e-commerce platform in Southeast Asia, Lazada has opened 6 sites in Southeast Asia, namely Singapore, Vietnam, Malaysia, Thailand, the Philippines and Indonesia. Local stores refer to stores that are registered and opened with the personal identity information of citizens in these six countries/seller accounts registered with local companies. The stores are local stores.
2. What is a cross-border store?
Cross-border stores are actually non-local (Southeast Asian) e-commerce sellers. For example, Chinese cross-border merchants use Chinese company information to register a seller account on Lazada, and the store they open is a cross-border store. Once a cross-border store is registered, all six sites can be opened.
Therefore, fundamentally speaking, the main basis for determining whether a Lazada registered store is local or cross-border is whether the store registration information is local information in Southeast Asian countries or overseas information.
Local stores are not necessarily only operated by local people in Southeast Asia. Since the policies of local stores are not the same as those of cross-border stores, many cross-border sellers will use local Southeast Asian information to register their Lazada local stores based on store planning and needs.
2. The difference between local stores and cross-border stores Considering the development prospects of the Southeast Asian e-commerce market, more and more cross-border e-commerce sellers are trying to find ways to do cross-border business while also getting involved in "local e-commerce business". So which is better, a local store or a cross-border store? Let's take a closer look at the difference.
1. Difference in shopping experience
Customers are king. When choosing to do e-commerce in Southeast Asia, you have to fully consider the needs of consumers. Judging from the shopping experience of users of local stores and cross-border stores on the Lazada platform, local stores are smoother and in line with local people's habits.
2. Differences in entry materials
If a local enterprise wants to enter Lazada, it needs to provide a business license + a public P card. It should be noted that a business license can only open one point. If a local individual wants to enter Lazada, he needs to provide an ID card + a bank card. At the same time, it is necessary to prepare a local security network environment for the account.
3. Differences in commissions
Cross-border stores have a commission of 4% + 2% payment fee, which is slow, slow to collect payments, no traffic support, and low conversion rate. Local stores have a commission of 1% + 2% payment fee, which is 2-7 days, with payments collected once a week. With the support of local traffic, the conversion rate is higher.
4. Difference in logistics costs
Local store sellers usually have their own overseas warehouses, or choose to cooperate with third-party overseas warehouses, so they can be shipped from local warehouses quickly to the sellers. For example, local store goods can be purchased locally, such as Shopee, sent to the cooperative transit warehouse and then sent to Lazada for official delivery. Compared with cross-border stores, there is no higher international logistics cost.
3. Is local or cross-border suitable for beginners?
From the above analysis, it can be seen that the advantages of running a local store are obviously higher than those of a cross-border store, but there are also some limitations and risks, which is also a problem that many seller friends need to consider.
For example: What should I do with a local account environment? If the IP address is abnormal, will it be blocked?
Yes, now there are many novice merchants who do not understand the importance of store security, and are usually easily blocked, especially those who operate multiple accounts to operate stores, and need to do a better job of preventing association. The platform has requirements. In order to prevent malicious competition between merchants, merchants are prohibited from opening multiple stores. Therefore, the account association rule came into being. Once a merchant is found to have account association, there will be a chain reaction in the merchant's multiple accounts.
In order to ensure the safety of your store, you should know that the platform usually checks accounts through IP, product duplication, account information, etc. Among them, the most common and effective way for the platform to check is to check the store's IP address. If you log in to multiple accounts and stores under the same IP address, or the IP does not match the information applied by the store, the possibility of being checked is the greatest.
Fingerprint browsers can solve this problem. For example, I can use fingerprint browsers to help open multiple customized browser environments and different IP addresses, truly simulating the local environment, which can greatly reduce the risk of being detected and greatly save the cost of business operations.
At the same time, it also provides residential ISP proxy IP, which is a solution for cross-border local store operations.
In general, whether to choose to do local or cross-border business depends on the situation of your own store. If the market for your product is relatively clear, and you have your own trusted local partner at a site in Southeast Asia, and issues such as local accounts, warehousing, shipping, and funding can be effectively resolved, then you can try to open a local store.
This article comes from online submissions and does not represent the analysis of kookeey. If you have any questions, please contact us
