Mercadolibre is one of the largest e-commerce platforms in South America and the seventh most visited retail website in the world. It is known as the South American version of eBay. However, in this huge e-commerce ecosystem, there are differences between local accounts and cross-border accounts. This article will analyze the differences between these two account types in detail to help you better understand how to operate an e-commerce business on the Mercadolibre platform.
1. Site restrictions.
One significant difference is the site restrictions. On the Mercadolibre platform, cross-border accounts allow one account to apply for multiple sites, which means that they can operate in different countries. Local accounts are limited to operating in one country and cannot enter multiple national markets.
2. Account weight.
The platform has a certain inclination towards local accounts, which is reflected in the support of product and store traffic. Local accounts usually enjoy more sufficient traffic support, which means that in the same category of products, local accounts will have higher store exposure, traffic and ranking than cross-border accounts.
The reason for this difference is the Mercadolibre platform’s support and protection policy for local countries in Latin America. In the case of a small user base of local accounts, the competition is relatively small, so the platform provides more support for local accounts. Local accounts usually have higher traffic and better security, and lower risks.
In addition, the functions of the Meikeduo platform are also more inclined to local accounts. The background page of the local account has a traffic entrance, which supports the precise automatic delivery of traffic channels such as Google ads and Facebook ads. This provides sellers with additional exposure channels, while cross-border accounts do not support this operation. At the same time, local accounts support brand operations, while cross-border accounts do not.
3. Shipping logistics.
In terms of shipping logistics, cross-border accounts need to comply with the logistics channels recognized by the country and must be applied for and approved before they can be used. Local accounts can use local logistics for delivery, which usually means faster logistics timeliness and easier to track goods.
4. Operating expenses.
There are also differences in operating expenses. Cross-border accounts usually need to pay the platform deduction commission (about 17%), but do not need to pay personal income tax and value-added tax. In addition to the platform deduction commission, local accounts also need to pay value-added tax (about 8%) and personal income tax (about 1%). Therefore, the platform only takes 2% commission from local accounts for each transaction.
5. Product categories.
Product categories are also restricted. Cross-border accounts are subject to more restrictions on categories and product sizes. Some sensitive products may not be sold on cross-border stores, and there are strict requirements on product sizes. However, local accounts have fewer restrictions on product categories and no special requirements on product sizes.
6. Product after-sales.
In terms of product after-sales, cross-border accounts have certain inconveniences. The backend page of the cross-border account does not provide a collection and return service interface. It is necessary to contact the local collection and return address in advance, and the returned products are usually not resold. The backend page of the local account already comes with a collection and return service. If the returned product is not damaged, it can be resold.
7. Collection cycle.
Finally, there are differences in the collection cycle. Since most of the store orders of cross-border accounts require international express delivery, the logistics time is longer, so the collection cycle is also relatively long. The store orders of local accounts are usually delivered by local logistics, which has a higher time efficiency, so the collection cycle is shorter.
Conclusion:
There are many differences between local accounts and cross-border accounts on the Meikeduo platform. Which account type to choose depends on business needs and target markets. Local accounts have more advantages in the local market, but cross-border accounts allow access to multiple countries. Therefore, when making decisions, be sure to carefully consider your strategy and goals to ensure that you choose the most suitable account type.