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

Shopee has both local stores and cross-border stores. In fact, as merchants who open stores on Shopee and do private business, what everyone is more concerned about is what is the difference between these two stores? After all, if one of the stores has privileges, then merchants will definitely want to join the store type with greater opportunities.

Usually when applying for a store, you first contact the investment manager and submit the business registration information, legal person information, transactions on other platforms and other information to them. After about a week of review, you will be able to obtain the store. The store registered in this way is a cross-border store.

A local store is one that uses local licenses, information and other materials to apply for opening a store. It is a registration channel open to the local area. It is like an American applying to open a store in Asia in the United States. The store that is approved is a local store.

2. Advantages and disadvantages of local stores

Advantages of local stores:

First, local stores are not subject to embargo restrictions and can sell banned categories, such as food, sensitive items, etc. Therefore, local stores have an advantage over cross-border stores in terms of categories.

Second, it is faster. Local stores ship goods locally, which reduces the circulation time and reaches customers in a shorter time.

Third, local stores do not need to pay 6% commission, only 2%.

Of course, there are also some shortcomings, which are the following aspects:

1. Local stores cannot use SLS logistics, and the cost is relatively high. Secondly, they need to stock up goods in overseas warehouses at the site, which requires higher product selection capabilities. The model is similar to Asia FBA, but the final delivery depends on local logistics. There are still few domestic companies that can provide Southeast Asian services, and the difficulty of supply control is increased. You need a very reliable company.

2. The information of local stores is the local information of the site, and it is relatively troublesome to return the funds to the account. Some service providers charge much higher fees than the collection agencies in this regard, so the cost is not low.

3. When the store owner opens a store locally, he is no longer a seller of a cross-border store. If there are operational, logistics and system problems, the Shenzhen and Shanghai business teams cannot provide support to the seller, which poses a risk. This is also the most troublesome situation for store owners. It is fine if there are no problems.

Therefore, although local sellers have many advantages, the risks are also considerable. If everyone is not mentally prepared and has coping measures, and only sees the advantages of local stores without considering the problems, then it will be very troublesome if risks arise.

In fact, the difference between Shopee's local stores and cross-border stores is that local stores are developed only for local people, while cross-border stores are developed for overseas sellers. Local stores do have advantages over cross-border stores. As a merchant, you can find local information to register a store, but you must also be prepared to take countermeasures.