Cross-Border E-Commerce Information

The difference between Xiaopi local store and cross-border store and its Shopee operation experience summary

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Update time : 2021-11-19 15:05:48
With the development of the Southeast Asian e-commerce market in recent years, Southeast Asia is an emerging blue ocean market. More and more Chinese sellers have begun to enter the Southeast Asian Shopee e-commerce platform from Amazon, and the threshold for Shopee's entry has become stricter. Many sellers basically only open one Shopee store, resulting in limited income. In fact, whether you are overseas or at home, you can actually make money by opening local stores and cross-border stores at the same time. Moreover, Shopee local stores and cross-border stores are synergistic with each other, which will have an effect of 1+1>2. The flow of local stores will far exceed that of cross-border stores. If you are familiar with the shop operation skills, you can open multiple shops at the same time, including local and cross-border shops.
 

Moreover, local stores are now a trend for Shopee's future development. Many Chinese shopee sellers turn to registering Shopee local stores, although Shopee local stores are subject to many restrictions when opening stores. Most sellers do not know the details of Shopee's local site and the difference between Shopee's local store and cross-border stores. If you are planning to build a local store, it is still necessary to learn more about the difference between a local shop and a cross-border store (Shopee local store) and its Shopee operation skills. As a professional e-commerce agency operation service provider in Southeast Asia, Ouge Digital provides you with some information, ideas and suggestions for opening cross-border stores and local stores at the same time. At the same time, Ouge Digital also provides shopee local store settlement services and Shopee operations. service.
1. What is a local shop in Shopee?
Shopee local stores are stores that are opened using the site's local business license, legal person and other information. The business entities of local stores are limited to local sellers, and registration channels will not be opened to sellers in other countries. For example, a Shopee store opened by a Malaysian in Malaysia is a local store in Malaysia, while a Singaporean cannot open a local Malay store.
2. (Shopee local store) The difference between Xiaopi local store and cross-border store
Shopee local stores are essentially stores opened by locals. Shopee stores opened by Chinese sellers are generally cross-border stores. The following Ou Ge Digital shares the difference between Xiaopi's local stores and cross-border stores from the following 4 aspects.
1. Platform charges
It can be seen that the zero commission of Shopee's local shop is a great discount for sellers. Especially if the order quantity is large, it can help the seller save a lot of money. Xiaopi is still very user-friendly, and only charges transaction commissions for completed orders. Compared with other cross-border platforms, Shopee is obviously more considerate in terms of commission for sellers. Platforms such as Amazon will charge more than 10% commission, and there will be a fee for opening a store. At present, there is no charge for entering Shopee, so Xiaopi is still very suitable for novice sellers.
2. How to open a store
A. Shopee cross-border store (Shopee cross-border store):
-Chinese local mobile phone number + Chinese individual/or enterprise business license;
-The first stop can be opened to Malaysia/Taiwan Province of China/Philippines 3 countries and regions
-The same business license can open sites in up to 8 countries and regions: Vietnam, Indonesia, Taiwan Province of China, Singapore, the Philippines, Thailand, Malaysia, and Brazil
-The maximum number of stores that can be opened: 24 stores (8 sites * 3 stores)
It is recommended that Chinese sellers prefer Malay or the Philippines. The Malaysian market is relatively mature, with a relatively large proportion of Malay Chinese and can speak Chinese. The Philippine market is in its infancy relative to other sites, and the level of competition is much smaller than that of Taiwan and Malaysia. Because Chinese Taiwan is also applicable to Chinese and communication is barrier-free, it is very suitable for novices and sellers who have done domestic trade. Therefore, it will also lead to low entry barriers and greater competition. No matter which country you choose, you will have the opportunity to choose other sites later, so don't worry about this.
B. Local store: local mobile phone number + local bank card registration to open a local store
It is relatively easy for local stores to register and open a store. As long as you have a local mobile phone number and bank card, you can register and open a store.
3. Shipping method
A. Cross-border stores: Shopee's official logistics.
Goods are packaged in the country, and the official SLS form of Shopee is posted and delivered to the official warehouses in Yiwu/Shenzhen/Shanghai/Quanzhou/Hong Kong. Note: Please register an SLS Wise Express account (Wise Express) before changing positions, and bind ShopID to the SLS Wise Express account at the same time. After registering your Wise Express account, you will receive a phone confirmation message for your Wise Express account. Generally, it takes 5-7 days to exchange positions. As long as the order shows Shenzhen, it means that the order has not been successfully changed. If the warehouse address is displayed as Shanghai, it means that the order change is successful. Shanghai can also choose to send to Yiwu or Quanzhou warehouse.
B. There are two ways to deliver Xiaopi local stores:
· Stocking: You can use A4 paper to print the face sheet. Choose Flash Express or other logistics companies for door-to-door pickup. Here is a little experience to share with you. Flash Express is cheaper than other express delivery and can guarantee the timeliness. If you choose J&T, the delay in picking up may lead to an increase in the cancellation rate of the store, so at this time, you must remember to save the appointment and the actual collection time. The screenshot of the delivery time is sent to Shopee customer service to appeal.
· Store-wide pre-sale: purchase in China, generally at 1688, purchase on Taobao, Pinduoduo, and send on behalf of you with one click.
4. Payment method
A. Shopee cross-border store remittance collection in RMB, there are mainly the following three remittance methods and the advantages and disadvantages of various remittance methods. You can choose the appropriate remittance method according to your needs.
-Payoneer: The normal rate is 1.2%, the minimum amount is more than 15 US dollars, and the withdrawal time is about 1 day, and there is exchange loss;
-PingPong: The normal rate is 1%, the withdrawal time is about 2 hours, and there is a foreign exchange loss;
-Lianlian Pay: The normal rate is 0.7%, the withdrawal time is 5 minutes, and there is no exchange loss.
B. Local stores: local currency, the maximum daily withdrawal amount for Singapore local stores is $40,000.
The above is the difference between (Shopee local store) Xiaopi local store and cross-border store. If you want to open a local shop of Xiaopi, you can refer to the following ideas and suggestions for opening a shop for the following three situations:
A. People in China:
-Shopee cross-border stores: each business license can open 8 sites, each site can open 3 stores, a total of 24 stores can be opened
-Shopee local store: buy local phone cards and ship them through international logistics
B. People who are overseas and have a Chinese ID card:
-You can register a Shopee cross-border store by registering a business license. The purpose is to test the hot products, and then buy the hot products in China and sell them to the local Shopee store. The advantage of having a Shopee cross-border store is to test the hot products. If you are in China, but you have overseas warehouse resources, you can actually test explosives through cross-border stores, and then stock up to overseas warehouses.
-Local stores: set up a pre-sale model and use a dropshipping website for delivery (Aliexpress, Chinabrands, CJdropshipping, etc.)
C. If you have an ID card from a certain country in Southeast Asia: register directly at the local Shopee store, set the pre-sale mode or stock up on Alibaba or Aliexpress to sell locally.

3. Comparison of advantages & disadvantages of Xiaopi local stores and cross-border stores
1. Advantages of local stores
(1). Rich product categories
Shopee local shops: You can list the categories of prohibited products in Shopee cross-border stores, such as food, cosmetics, 3C products, sensitive products, etc. The local shop of Xiaopi is open for free listing of all categories, as long as the domestic customs can pass it, it can be put on the shelf.
Shopee cross-border stores: Different countries have different product restrictions, such as liquids, 3C electronic products, etc., and the range of products available is limited.
(2). Strong traffic support
Shopee local stores: In the Shopee platform, when buyers search for any keyword, under the same conditions, the Shopee platform will give priority to displaying local stores. This shows that Shopee tends to support local sellers and help local economic development.
Shopee cross-border stores: As a cross-border e-commerce seller, the Shopee platform ranking is the key to sales. When the product ranking is relatively low, then the product has almost no exposure, and it is almost impossible for buyers to find the product, let alone place an order.
(3). Lower commissions and rates
Shopee local shops: There is no commission on the local shop platform, and only a 2% transaction fee is charged. In addition, local shops have a large discount in terms of withdrawals.
Shopee cross-border stores: Shopee’s cross-border stores charge 5%-6% commission + 2% handling fee + withdrawal handling fee, which eats up most of the profits.
(4). Receipt
Xiaopi local shops: cash can be withdrawn upon receipt, and remittance is fast.
Shopee cross-border stores: Cross-border stores have a relatively long payment collection cycle. The payment collection day of each month is the middle and the end of the month, and there are a total of two payment opportunities.
(5). Logistics timeliness
Shopee local stores: Shopee deliver goods from local shops, and deliver them locally, which reduces the time spent by cross-border shops in international logistics, can deliver goods to buyers more quickly, and improve the logistics experience.
Shopee cross-border store: When a seller in a cross-border store sells an order, first purchase the product and pay the shipping fee to transfer the product to the nearest Shopee warehouse, and then ask the freight forwarder to post the bill and pay the bill once, and then send it to After the transshipment warehouse, Shopee will send it to foreign countries, and then send it out after arriving in various countries. In this way, the logistics cost is significantly increased, and the logistics efficiency and cycle are long.
2. Disadvantages of local stores
(1). Fund safety
Local stores cannot bind Payoneer, PingPong, or LianLian Pay and other payment methods to return payments, and need to use the service provider to help collect the payment, which depends on whether the service provider is reliable.
(2). Logistics
Shopee SLS Logistics does not support local stores. Sellers in local stores need to find freight forwarders by themselves, and some remote sites also need to ship the goods to the local in advance. The requirements for product selection are even higher.
(3). Store safety
Shopee local shops are shops registered by locals. We only have the right to use it, but we don't have the actual ownership right.
Everything has two sides. To sum up, we have to think about whether the advantages outweigh the disadvantages or the disadvantages outweigh the advantages, and make the best plan for ourselves.

Four, Shopee local store site situation
1. Taiwan Station
Shopee Taiwan Station is one of the first sites to open Shopee's cross-border stores. The Taiwan site is the largest among Shopee's sites. For new sellers or cross-border sellers who are about to transfer domestic trade to foreign trade, Shopee Taiwan is one of the best choices for cross-border e-commerce.
Shopee APP is one of the most popular shopping APPs in Taiwan, with more than 20 million downloads.
Relying on Taiwan's well-developed logistics channels, Xiaopi has opened two distribution modes: store delivery and home delivery, and both support COD cash on delivery, which can fully meet the payment and logistics needs of buyers.
Most of Shopee's Taiwanese users are between 20-40 years old. Among them, women prefer online shopping for women's clothing, home, maternal and child products, while men's online shopping focuses on leisure and entertainment, outdoor, 3C electronics, luggage, etc. These categories are the most popular categories on Shopee's Taiwan site. For sellers who have difficulty in foreign languages, it is recommended that the Taiwan site be the first choice. Or the selection is clothing, but the clothing does not meet the aesthetics of Southeast Asia, you can also consider Shopee Taiwan.
2. Malay Site
In addition to the Taiwan site, the Malay site is also one of the first sites to open Shopee cross-border stores. For experienced cross-border sellers or sellers who operate other cross-border platforms, it is suitable to focus on Malay and Singapore sites.
Malay and Singapore are both in the English market. If you have done other English foreign trade platforms before and have a better understanding of the European and American markets, then these two sites are quick to get started, the operation is relatively difficult compared to other Shopee Southeast Asia sites, and the operation is relatively easy. The per capita GDP of the Malay market is very high, and some unique operating techniques can be considered, and the results are very fast.
Compared to other markets, Malaysia is a relatively open newly industrialized country with a large population and a high degree of market activity. In addition, Malaysia has a good relationship with China.
Beauty, fashion, toys and other categories are the best-selling categories on Malay sites. And the sales volume of products in these categories has been increasing. Therefore, cross-border sellers in the women's clothing industry can choose Malaysia as their first stop. Malaysia believes in Islam, and sellers need to consider traditional Islamic clothing and related accessories. Malaysia has a tropical climate. There is no market for winter clothes in Malaysia. However, due to the issue of faith, Malaysians are half short-sleeved and half long-sleeved, even in summer.
Through a simple analysis of the Malay site, we can see that to do a cross-border industry and to do a good job in the local market, the first thing to do is to investigate the local culture. For example, for women's clothing, Malaysians prefer owls, hellokitty and other patterns with hellokitty or owl patterns are more popular among Malaysian consumers.
3. Philippines site
The Philippines is not popular on the Shopee Southeast Asia site. Because although the Philippines has a population of nearly 100 million, per capita consumption is relatively low. Therefore, the Philippine station is a market neglected by Shopee cross-border sellers. This also caused the Philippine station to be less competitive, so the Philippine station is currently an opportunity. If the Philippines site is the first stop, 3C digital products for electronic products are more suitable.
4. Singapore site
Singapore has the strongest purchasing power among all Southeast Asian countries, and its per capita annual income ranks 6th in the world. Singapore's industry and economy are highly developed, and it is also a very important international trade transfer station in the world. Singapore also has the Shopee headquarters. Although the population of the Singapore market is relatively small among the sites in Southeast Asia, the Singapore market has strong purchasing power and high consumption potential. Coupled with the support of Singapore’s policies, Singaporeans prefer to buy imported goods.
Singapore's car prices are relatively expensive, so categories such as auto parts and beauty can have higher profit margins in the Singapore market.
The operation of the Singapore station will be more difficult than other websites. The consumption habits of Singaporeans are similar to those of Europeans and Americans, and they have higher requirements for the quality of content such as product pictures, product details, and brands.
5. Indonesia site
Indonesia, with a population of more than 260 million, ranks fourth in the world's population and the first in Southeast Asia. The demographic structure of Indonesia is relatively young and the consumption potential is huge. It is in the period of demographic dividend and the market potential is huge.
Indonesia's main consumer products are concentrated in products such as cosmetics and household products. Indonesian girls' makeup styles tend to be heavy makeup, so there is a huge demand for cosmetics and color cosmetics. However, the consumption level in Indonesia is not high, so low-cost makeup is more popular. The number of female Internet users in Indonesia far exceeds that of males, and sales of fashion accessories, household items, maternal and child products, clothing and accessories are relatively good.
Indonesia is where all sellers must compete in the Southeast Asian market. Because the market is more price-sensitive, it is more suitable for sellers with low-priced sources.
6. Vietnam site
The population of Vietnam is close to 100 million,The consumption habits are relatively close to those of China, and the age of the consumer group is 18 to 35 years old. The Vietnamese market prefers Korean women's clothing, fashion accessories, and children's beauty makeup. 3C electronic products and accessories are also more popular, such as Apple mobile phone cases, mobile phone films, mobile phone charger data cables, fans, earphones and so on.
7. Thailand site
Thai site operation skills can learn from China's domestic e-commerce operations, because Thai and Chinese consumption habits are similar. If the Thai site is opened, Shopee officials can help sellers solve language and logistics problems. The Thailand site is suitable for sellers who want to expand their overseas business.
The clothing category is the most popular category on the Shopee Thailand site. Hawaiian-style clothing, retro prints are more popular. Personal care and cosmetics are also popular commodity categories. Shopee Thailand site and Vietnamese site are small language sites and will definitely suffer from language difficulties. If the seller has an advantage in a small language, it is recommended to choose the Shopee Thailand site.
Five, the new time point of Shopee local stores
It is very important for Shopee to insist on new products in the early stage of opening a store. The platform will give some natural traffic support after the product is new. In addition, new products in the store will be given priority to fans in the store. The active hours of users on Shopee Southeast Asia sites are different, so you need to pay attention to the active hours between different sites when you launch a new site. The active time of the following sites is for reference only. The actual active time sellers need to analyze and optimize based on the visit data of their own stores:
-Taiwan Station and Singapore Station: 20:00-00:00;
-Malay Station: 14:00-16:00;
-Indonesia Station: 10:00-12:00; the number of orders will start to decrease after 21:00;
-Philippine station: the order time is more scattered;
-Singapore site: no specific peak time
-Vietnam Station: There are more orders in the morning.

6. How to deliver goods from local Shopee stores? Shopee local store shipping tutorial
Shopee local stores, sellers are required to deliver goods locally, and the local logistics waybill number must be uploaded. For domestic sellers who are local Shopee stores, delivery is indeed a problem. There are two delivery methods for reference:
1. Shipment from overseas warehouses
At present, there are many domestic logistics companies that can provide overseas warehouse services in Southeast Asia, such as SCM Lightning Supply Chain, https://flashscm.com/, which can provide integrated warehousing and distribution services. If the seller is a local shop of Xiaopi, they can choose to transport the goods to the local overseas warehouses in Southeast Asia through the SCM lightning supply chain. When the buyer places an order, the overseas warehouse is directly responsible for the delivery.
Some overseas warehouses can also provide one-stop services such as drop shipping, return and exchange of labels, and first-haul transportation, which greatly improves store operation efficiency.
The process of overseas warehouses is also relatively simple. The seller contacts the logistics company, then packs the goods, and the logistics company is responsible for transporting them to the overseas warehouse by sea or air, and then waits for the buyer to place an order.
If it is a seller with sufficient funds or a large-scale local store that has already done business, you can also choose to rent a warehouse locally, and then seek cooperation with a local logistics company, so that you can save some logistics costs, and then buy When you place an order, it will be delivered by the local logistics company.
2. Drop shipping
Another way is drop shipping. Sellers can find local distribution companies, and then choose the mode of distribution to put them on their local shops. When there is an order, the seller will push the order to the local distribution company for one drop.
The drop shipping model has a relatively low cost and is more suitable for insufficient funds and novice sellers. Because there is no need to stock up, logistics costs, etc., just do a good job in store operations, which is more advantageous for less capital and novice sellers.
There is also a pre-sale mode that can be set up to purchase goods when there is an order, and then ask the freight forwarder to transport it to the local warehouse, and then let the logistics company deliver it.
If a domestic seller is a local Shopee store, they must ship the goods in accordance with the platform regulations. After all, the person is in China and the store is overseas. It will be more troublesome to violate the regulations.
The delivery method is one of the biggest differences between local shops and cross-border shops. Sellers need to choose carefully according to their actual situation and decide whether they are suitable for local shops.
If it is a Shopee cross-border store, how do you ship it?
When a customer places an order, go to the background of the Shopee store to find> My Sales> Shipping> select the pending order, and then click Arrange delivery, then the interface will pop up a face sheet, click to print the face sheet corresponding to the order.
Then the seller needs to pack the goods according to the requirements. After packing, the goods are sent to the designated Shopee warehouse, and then the Shopee warehouse will scan the receipt after receiving the goods. At this time, the entire delivery process is completed, and the rest is Give it to Shopee.
Note: Shopee has four domestic transit warehouses: Shanghai, Shenzhen, Yiwu, and Quanzhou. Sellers are advised to check Shopee's official logistics when choosing logistics to enjoy shipping subsidies.
To
7. Summary of Shopee operating experience (local stores and cross-border stores)
Let's share the operating experience of Xiaopi's local stores and cross-border stores:
First of all, before planning to open a local shop, the following points need to be considered:
First, if there are any operation and logistics related problems in Shopee's local store, it will not be possible to seek help from the domestic Shenzhen and Shanghai Shopee business teams. Therefore, we must operate cautiously, and we must find a reliable local person.
Second, Shopee's SLS logistics is more cost-effective for cross-border stores, but it does not support Shopee's local stores. It is recommended to use Shopee's cross-border stores. Based on the above considerations, it is best for local sellers to calculate accurate replenishment points when stocking.
Finally, opening a local shop of Shopee will involve some agency collections, service fees, etc., because Chinese sellers do not have local collection accounts.
In the future, it will be a trend for Chinese sellers to do local stores, but the Shopee platform will definitely limit this trend. Because as a local e-commerce platform in Southeast Asia, the original intention is to help and support local sellers and local economic development. In the early days, the local shops of Xiaopi may be profitable, and subsequent platforms are more inclined to local sellers in the distribution and rules of traffic, and they are becoming more and more strict.
So what do you need to pay attention to during Shopee operation?
First of all, understand the nature of the Shopee platform. Shopee is actually a platform for distributing goods. The platform has a limit on the number of products. Therefore, sellers must be familiar with and abide by the rules of the platform, and master the rhythm of listing. Don't use some software to put on the shelves in batches, especially cracked software. If hundreds of versions are put on the shelves a day, the store is easy to be hacked. The correct way is to insist on adding new items every day, while adding them to the shelves, while optimizing them. At the beginning, about 10 items a day, wait a month or so, try to increase the number to about 300, you can reduce it a bit, but continue to stick to the daily The number of items on the shelves is slowly increasing, and there is no problem if it is added to 1000+.
The second is product selection. There are many factors that can be referred to when selecting products. Sellers can refer to several factors when selecting products and use a variety of selection tools, such as using keyword software to understand search volume, and investigate the sales of similar models on various e-commerce platforms. In addition, it is also necessary to understand the living standards, religious beliefs, consumption habits of the locals in Southeast Asia, the Shopee platform weekly report, and related sales data. The more comprehensive the data, the more reliable the product selection.
In addition, finding suppliers is also very important. Each store will have its own drainage, ordinary, profit, and explosive. After selecting the target customer group, we found 3 suppliers that mainly deal with these products. The criteria for the selection of goods suppliers must be that the three indicators of price, delivery, and return rate are higher than the industry average. It is good that the delivery and return rate can reach more than 30%. After the supplier is selected, new batches can be launched.
After the product is determined, it is necessary to focus on the popular products, further dig out other products related to the popular products, analyze the specific needs of specific customers, find out the selling points, and then make a high premium, use this breakthrough point to exert force, so that the store sales Generally not bad.
After the product is on the shelf, how to get the ranking and traffic? The Shopee platform ranking mainly focuses on three elements, home page popularity + latest shelves + price and sales.
You can try the following methods:
1. The homepage products of the follow-up platform
2. Select the peak period of buyer traffic for the listing time
3. Free shipping as much as possible to make it easier to rank higher
4. Swipe your orders cautiously
5. Make a good category breakdown
6. Low price strategy
7. Pay attention to the brand carefully and follow the sale, otherwise it is easy to be taken off the shelf
In addition, every time a product is put on the shelves, the platform will support new products on the shelves. This is one of the rules of the platform. Take good advantage of the opportunities the platform gives new products and choose the peak buyer traffic period when they are put on the shelves.
Taiwan and Singapore, like China, are generally active at night, with a single increase starting at 8pm and continuing until 0am. The time points when the largest number of orders were placed in Taiwan and Singapore were 10 o'clock in the evening and 11 o'clock in the evening. In addition, the Singapore site also has a small peak of order placement at noon.
The shopping time of Malay and Thai people are relatively similar. Starting at 11 o'clock in the morning and continuing until noon, it is the peak shopping period every day. Among them, the peak time period for placing orders at the Thailand site is 13-15 o'clock. The Malay station is between 14-16 o'clock.
To sum up, Shopee is still in a rising period, and the platform will become more and more mature in the future. There are still more gameplays at present. Sellers can grow wildly quickly, otherwise the operating costs will be more and more like domestic Taobao. The higher the traffic cost will increase.
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