On the MercadoLibre platform, companies are faced with the choice between local accounts and cross-border accounts when choosing account types. There are significant differences between these two account types in terms of sites, weights, product operations, fund management, and store operations. For companies, it is crucial to choose an account type that suits their own development plans.
1. Sites.
There are important differences between local accounts and cross-border accounts in the choice of sites. Local accounts are limited to operating in one country, while cross-border accounts allow one account to apply for multiple sites and cover multiple countries. This reflects a restriction on local accounts, while cross-border accounts are more suitable for companies to operate in multiple countries and have more flexible development plans.
2. Weights.
In terms of overall weight, local accounts enjoy obvious advantages in store exposure, traffic, product rankings, and logistics. The MercadoLibre platform adopts a support and protection policy for local Latin American countries, which makes the user base of local accounts relatively small and less competitive. In addition, the background page of local accounts is more feature-rich, supporting traffic entry and brand operation, while cross-border accounts are relatively limited.
3. Product operations.
In terms of product operation, local accounts have fewer restrictions on product categories, while cross-border accounts are subject to more product category restrictions. This reflects the Meikeduo platform’s protection strategy for local enterprises and product sales, and is also a restriction on the storage capacity of cross-border accounts. This difference is specifically reflected in size restrictions and other aspects, making local accounts more suitable for enterprises with product advantages.
4. Fund management.
There are obvious differences in fund management between local accounts and cross-border accounts. After local accounts use full warehouses to ship goods, customers can quickly receive payment after confirming receipt, while cross-border accounts have a longer payment cycle of two weeks. This has an important impact on the company’s capital liquidity and business plans, and needs to be carefully considered.
5. Store operation.
In terms of store operation, local accounts are relatively more independent and can independently operate the listing, shipment and participation in platform promotions of backend products. However, the listing and shipment of backend products for cross-border accounts require the approval of the investment manager, and participation in promotions also requires application to the investment manager. This shows that local accounts are more flexible in store operation.
Conclusion:
Choosing the right account type for your company is a decision that requires careful consideration. Local accounts are suitable for companies that have deep roots in a country’s market and have local product advantages, while cross-border accounts are more suitable for companies that have product advantages and a complete supply chain and team. Due to differences in sites, weights, product operations, fund management, and store operations, companies need to comprehensively consider their own strengths and future development plans when choosing an account type to achieve better operating results.