Detailed comparative analysis of local accounts and cross-border accounts on Meike’s multi-platforms

1. Overview of account types

MercadoLibre is one of the largest e-commerce platforms in South America and is known as the South American version of eBay. In the platform, sellers can choose to open a local account or a cross-border account. There are obvious differences in the operation methods and advantages of the two account types.

2. Main differences

1. Site restrictions

• Cross-border account: Allows one account to apply for multiple sites, that is, it can operate in different countries.
• Local account: It is restricted to operate in one country and cannot span multiple national markets.

2. Account weight

• Local accounts: Enjoying more sufficient traffic support means that in the same type of products, the store exposure, traffic and ranking of local accounts will be higher than that of cross-border accounts. The platform’s support and protection policies for local Latin American countries enable local accounts to have higher traffic and better security.

3. Shipping logistics

• Cross-border account: It needs to comply with the logistics channels recognized by the country and must be applied and approved before it can be used.
• Local account: You can use local logistics for delivery, which usually means faster logistics and easier-to-track goods.

4. Operating expenses

• Cross-border account: Usually you need to pay platform commission (about 17%), but you do not need to pay personal income tax and value-added tax.
• Local account: In addition to commission deductions from the platform, you also need to pay value-added tax (about 8%) and personal income tax (about 1%). Therefore, the platform’s commission for local accounts in each transaction is only 2%.

5. Product categories

• Cross-border account: Subject to more categories and product size restrictions, some sensitive products may not be sold on cross-border stores, and product sizes have strict requirements.
• Local account: There are fewer restrictions on product categories and no special requirements on product size.

6. Product after-sales

• Cross-border account: The backend page does not provide a collection and return service interface. You need to contact the local collection and return address in advance, and returned products usually cannot be sold again.
• Local account: The backend page already comes with a collection and return service. If the returned product is not damaged, it can be resold.

7. Payment cycle

• Cross-border account: Due to the long logistics time, the payment recovery cycle is also relatively long.
• Local account: The logistics time is higher and the payment cycle is shorter.

3. Summary

On the Meikeduo platform, there are many differences between local accounts and cross-border accounts. Which account type you choose depends on your business needs and your target market. Local accounts have more advantages in the local market, but cross-border accounts allow access to multiple national markets. Therefore, when making a decision, it is important to carefully consider your strategy and goals to ensure you choose the most appropriate account type.

Whether you choose a local account or a cross-border account, you need to make a reasonable choice based on your own situation to achieve better business development and success.