What is the difference between LAZADA local stores and cross-border stores?

Many merchants have only a vague understanding of LAZADA cross-border stores and local stores, and do not know which type of store they are suitable for. Today, we will help you make a comparison from various angles;

1. Materials for opening a store

A: Cross-border store: Domestic company business license, corporate Alipay or legal person Alipay certification, email, mobile phone number (Note: individual businesses and individuals cannot open stores)

B: Local store: local country ID card/local country company business license/passport local country mobile phone number local country bank card (Note: passport currently only supports registration of Thailand and Philippines sites)

2. Platform costs

A: Cross-border store: The cost is mainly composed of platform transaction commission 4% + handling fee 2% Withdrawal fee: Enterprise Alipay withdrawal fee is 0.03%, Payanying withdrawal fee is 1.2%; Special note: New merchants are exempt from commission for the first 90 days, and normal charges will be charged after 90 days. For more consultation, please follow the official account: AliExpress Master

B: Local stores: 1%-2% of transaction commission 2% for Lazmall stores, ordinary stores in some countries do not charge commission

3. Logistics delivery

A: Cross-border stores: There are three main delivery methods: domestic direct delivery (merchants only need to send goods to the platform's domestic transit warehouse), central warehouse (as the name suggests, it is similar to the overseas warehouse model, but it is sent to the platform warehouse in the form of stockpiling goods, and the central warehouse is in China), and overseas warehouse (currently except for the Vietnam site, other countries have it, and you can directly apply in the background to stockpile the goods in the platform's overseas warehouse in advance)

B: Local stores: You need to build your own overseas warehouse or find a third-party warehouse to cooperate with. You cannot use the platform's overseas warehouse. You must ship locally. You cannot ship domestically after placing an order.

4. Product Category Restrictions

A: Cross-border stores: divided by product categories, one store operates a large category, and cross-border stores will have some product restrictions, not all products can be sold, some cannot be sold, and some need to apply for a whitelist with the platform. For more consultation, please follow the official account: AliExpress Master

B: Local stores: Any product can be sold as long as it complies with local laws and regulations. A store can sell any product without category restrictions.

5. Difference in traffic

From the perspective of the nature of the store itself, local stores have better traffic than cross-border stores for two reasons:

(1) Local stores ship directly from the local area, with a basic logistics cycle of 2-3 days, while cross-border stores have a domestic direct logistics cycle of about 7 days; therefore, local stores have a better buyer experience and a faster delivery time, making them the first choice for buyers.

(2) Local stores ship goods locally, so the logistics costs are cheaper than domestic delivery, and there are no more platform fees, so they have certain advantages in product pricing. Buyers are naturally more inclined to buy at a cheaper price.

But does it mean that cross-border stores cannot be opened? Definitely not. First of all, local stores cannot be opened in all countries with passports. Secondly, even if you have a passport, many merchants cannot accept local bank card payments. Finally, local stores need to stock up goods in the local country in advance, which will have certain risks of overstocking.

Relatively speaking, cross-border stores can cover more national sites and can open all national sites at one time, while local stores can only cover local countries. Secondly, cross-border stores do not need to stock up a large amount of goods in the early stage, and there is no risk of capital pressure. In the middle and late stages, they can use overseas warehouses. The core is that there needs to be a certain degree of differentiation from the products of local stores. Merchant friends can make a choice according to their own situation!