Lazada Local vs Cross-Border: Quick Guide for New Sellers

In recent years, the Southeast Asian e-commerce market has continued to heat up. As the leading platform in the region, Lazada has become the first choice for many cross-border sellers. However, faced with the two operating modes of local stores and cross-border stores, novice sellers often fall into a dilemma of choice . This article will make an in-depth comparison from multiple dimensions to help you make the best decision based on your resource endowment and strategic goals, avoid misunderstandings about opening a store, and quickly seize the dividends of the Southeast Asian market!

one, The core difference between Lazada local stores and cross-border stores

The following is a comprehensive analysis of the core differences between Lazada local stores and cross-border stores in terms of registration entity, shopping experience, entry materials, commissions, logistics, payment methods and after-sales service, tax policies, etc .

2. Advantages of Lazada local stores and cross-border stores

(1) Advantages of local stores:

1. Wide market coverage: It has priority ranking advantage in platform search results, can obtain more traffic and exposure, and has higher conversion rate with the support of local traffic.

2. Logistics advantage: Goods can be shipped from local warehouses, providing faster delivery speed and lower logistics costs, increasing buyers' willingness to purchase.

3. High trust: Using local bank accounts for transactions can enhance consumers’ trust in the store, which is conducive to improving the store’s credibility and reputation.

4. Convenient after-sales service: timely provide consumers with after-sales support, solve problems such as product quality, and improve customer satisfaction and loyalty.

5. Full-category operation: The platform allows all categories of goods to be freely listed, with rich product categories and more diverse choices.

(2) Cross-border store advantages:

1. Low initial investment: There is no need to set up local companies, warehousing and logistics systems in Southeast Asia, which reduces initial investment and risks, and the operating costs are relatively low.

2. Convenient market testing: It can test the market acceptance of products in different countries, understand local consumer needs and preferences, and accumulate experience for localized operations.

3. Lazada local store & cross-border store selection

For newcomers to Southeast Asian e-commerce, the choice of local stores or cross-border stores requires a comprehensive judgment based on financial capabilities, resource reserves, and market goals:

• Characteristics of sellers who are suitable for choosing cross-border stores :

(1) Limited budget: Cross-border stores have low initial costs and are suitable for testing the market or small-scale operations.

(2) Multi-country testing needs: Cross-border stores support the opening of multiple country sites at the same time , which facilitates the rapid testing of the potential of hot products in different markets.

(3) Lack of local resources: There is no need to deal with complex aspects such as local taxes, logistics, language after-sales, etc. The platform's official logistics can solve cross-border delivery problems.

Suitable for people: beginners with limited funds, no overseas warehouse resources, and who want to verify products at low cost.

• Characteristics of sellers who are suitable for choosing local stores :

(1) The goal is to focus on a single country: local stores have significant advantages in traffic support, search rankings, and adaptability to local payment methods, and their conversion rates are usually 30%-50% higher than those of cross-border stores .

(2) Supply chain or warehousing advantages: Goods can be prepared in advance in local warehouses in Southeast Asia, achieving extremely fast delivery within 3-5 days and increasing repurchase rates.

(3) Long-term branded operations: Local stores can build trust among local consumers and are more suitable for building brand loyalty.

Suitable for: Sellers who have certain financial strength, plan for long-term operation, and already have supply chain resources in the target country.

If we focus on long-term development, the market prospects of local stores are undoubtedly broader. It is not only a door to open the market of a specific country, but also a key path to establish a localized brand image and cultivate a loyal customer base, bringing sellers continued growth in revenue and a solid market position.

There are two key issues that novices need to pay attention to when opening a local store:

1. Local store account anti-association

In order to prevent malicious competition among merchants, the Lazada platform prohibits merchants from opening multiple stores. Once a merchant is found to have account associations, a chain reaction will occur among the merchant's multiple accounts, and a batch of stores may be closed due to account associations.

2. Local store IP positioning

The Lazada platform will use algorithms to detect the seller’s IP location, network environment, and login behavior. Local stores must use the local IP of the target country , otherwise the store will be blocked.

It is recommended that you use IPFoxy static residential IP to set up store accounts when opening local stores . The real ISP residential IP address provided by IPFoxy can match the IP network requirements of Lazada local stores . It can also help cross-border sellers to prevent multiple accounts from being associated. One device can operate multiple independent accounts at the same time, and it can also make it appear as a one-number, one- IP environment system, thereby effectively preventing the platform from detecting account associations and causing the store to be blocked.

In short, novice sellers should make wise choices based on their actual situation and resource conditions, and fully understand the differences and advantages of Lazada local stores and cross-border stores. Whether pursuing a short-term quick start or focusing on long-term brand building and market expansion, they should reasonably use various tools and resources under the premise of complying with platform rules to ensure the stable operation and sustainable development of the store.