The main differences and influencing factors between Lazada’s local stores and cross-border stores

As a well-known cross-border e-commerce platform in Southeast Asia, Lazada has a huge traffic and user base, so it has become the first choice of many sellers. This article will explore in detail the main differences between Lazada’s local stores and cross-border stores and their impact on sellers.

Sales region differences

• Local stores Mainly target consumer markets in specific regions, such as Malaysia, Indonesia, Philippines, etc.
• Cross-border stores can sell to consumers in different countries and regions around the world.

Import and logistics differences

• Local stores require sellers to ship goods to local warehouses, and Lazada will be responsible for subsequent logistics and distribution.
• Cross-border stores require sellers to handle cross-border logistics and import processes themselves.

Tax and regulatory requirements

• Local stores Comply with local tax and regulatory requirements.
• Cross-border stores Sellers need to understand and meet the relevant tax and regulatory requirements of the target country or region.

Differences in competitive environment

• Local stores may face stiff competition in the local market, including local and other international brands.
• Cross-border stores Facing different competitive environments, it is necessary to formulate corresponding market strategies for each target market.

Platform policy differences

Search ranking

• Under the same conditions, the platform prefers to display local stores, while cross-border store traffic mainly comes from paid promotion services.

Logistics advantages

• Cross-border stores take a long time from order placement to delivery, while local stores have local warehouses or choose third-party overseas warehouses to complete delivery in the shortest time.

Category restrictions

• For cross-border sellers, stores have certain restrictions on product category selection. This is due to logistics and customs control factors in different countries. Many products are prohibited for sale. If the platform policy further restricts them, there will be fewer products available for sale to the outside world.
• In contrast, local stores have no category restrictions. Therefore, local stores have a complete range of categories, user selectivity is high, and the conversion rate will naturally be relatively high.

Platform commission ratio

• For each transaction, the cross-border store platform will charge a commission of 4% to 6%, and the withdrawal fee is 2%.
• For local stores, the platform is commission-free and only charges a 1% withdrawal fee, providing local sellers with higher competitive advantages and development opportunities.

Repayment cycle

• Generally speaking, the order delivery cycle for cross-border stores takes about 15 days, and the withdrawal of funds takes 30 to 45 days.
• Local stores ship goods from overseas warehouses, and the delivery cycle only takes 3 to 4 days. Payment is confirmed once the goods are received. Through compliant foreign exchange settlement channels, funds can be settled within the fastest 2 days.

Conclusion

Choosing a suitable sales model depends on the seller’s business goals, product features and resource capabilities. Sellers should conduct detailed market research and business plans to evaluate the potential benefits and risks of each sales model before making a decision. In addition, you should also have an in-depth understanding of the local store and cross-border store policies, fee structure, market support, etc. of the Lazada platform.