Mercado Libre, as the largest e-commerce platform in Latin America, offers two business models for merchants: local stores and cross-border stores. Understanding the differences between these two models is crucial for merchants to formulate market strategies.
I. What is the difference between local and cross-border stores on Mercado Libre?
Local Store: Refers to a store set up by the merchant in the local country or region of the Mercado Libre platform, where goods are stored and shipped locally.
Cross-Border Store: Refers to a store where the merchant sells goods to consumers in Latin America through the Mercado Libre platform from a non-local country or region.
2. Logistics and Distribution
Local stores usually have faster logistics and distribution speeds because goods are stored in local warehouses, reducing transportation time.
Cross-border stores have longer logistics and distribution times because goods need to be transported from abroad to the consumer.
3. Tax Policies
Local stores must comply with local tax policies when selling goods, which may enjoy lower tax rates or tax incentives.
Cross-border stores must comply with import and export tax policies, which may face higher taxes.
Here is the translation:
Mercado Libre, as the largest e-commerce platform in Latin America, provides merchants with two business models: local stores and cross-border stores. Understanding the differences between these two models is essential for merchants to develop market strategies.
I. What are the differences between local and cross-border stores on Mercado Libre?
1. Definitional Differences
Local Store: Refers to a store established by the merchant within the local country or region of the Mercado Libre platform, with goods stored and shipped locally.
Cross-Border Store: Refers to a store where the merchant sells goods to Latin American consumers through the Mercado Libre platform from outside the local country or region.
2. Logistics and Distribution
Local stores typically have faster logistics and distribution speeds because the goods are stored in local warehouses, which reduces transit time.
Cross-border stores have longer logistics and distribution times because the goods need to be shipped from abroad to the consumer.
3. Tax Policies
Local stores must adhere to local tax policies when selling goods, which may offer lower tax rates or tax benefits.
Cross-border stores must comply with import and export tax regulations, which may result in higher tax burdens.
