Comparison of Advantages and Differences Between Local and Cross-border Stores on OZON Platform

Which is better OZON Local Store or Cross-border Store? Explanation of the Differences!

With the rapid development of cross-border e-commerce, more and more merchants are considering opening a store on the OZON platform. For those who want to open a store on OZON, choosing between a local store or a cross-border store is an important decision. This article will introduce the differences between OZON local stores and cross-border stores, helping merchants make informed decisions.

1. Store Registration

There are two ways to open an OZON store local store and cross-border store. A local store requires merchants to register a company or individual business in Russia and submit relevant documents and information for review. A cross-border store requires merchants to have overseas company qualifications and provide relevant proof documents, such as business licenses and tax registration certificates. In comparison, the process of opening a local store is more complicated, involving more tedious procedures and certification processes.

2. Sales Restrictions

There are some differences in sales restrictions between local stores and cross-border stores. A local store can sell its own products as well as products from cooperating manufacturers. However, for cross-border stores, due to cross-border trade, some products may be subject to import restrictions or tariff issues, leading to limited sales. Some sensitive products or those involving intellectual property issues may not be sold on cross-border stores. When choosing a store type, merchants should consider whether their products comply with local laws, regulations, and trade policies.

3. Logistics and Delivery

Opening a local store requires merchants to handle logistics and delivery on their own. Merchants need to cooperate with local logistics companies to ensure that products are safely and timely delivered to consumers. For cross-border stores, logistics and delivery are more complex, requiring cooperation with overseas logistics providers to ensure that products reach Russian consumers smoothly. Some logistics costs and customs duties also need to be handled by the merchants themselves.

4. Taxation and Payment

Opening a local store requires compliance with local taxation and payment regulations. Merchants need to understand local tax policies, such as value-added tax and income tax, and report and pay taxes according to the required time and method. For cross-border stores, since they involve cross-border trade, tax and payment regulations may differ in some countries, and merchants need to communicate and coordinate with local tax authorities. Merchants should choose appropriate payment methods, such as local payment systems or international payment platforms, to ensure the security and convenience of transactions.

5. Market Environment and Competition

Different market environments and competitive conditions have a significant impact on the operation and development of a store. Local stores usually have a better understanding of local consumer needs and shopping habits, allowing them to better grasp market trends and consumer preferences. Cross-border stores, on the other hand, need to deal with different market rules, cultures, and consumption habits, requiring more time and effort for market research and consumer analysis. The competition for local stores is relatively smaller, making it easier to gain market share and consumer recognition. However, cross-border stores also offer broad market potential and development space, especially for merchants looking to enter the Russian market, making them a good choice.

In summary, OZON local stores and cross-border stores each have their own advantages and disadvantages. Merchants need to make decisions based on their actual situation and needs. When choosing a store type, factors such as store registration, sales restrictions, logistics and delivery, taxation and payment, and market environment and competition should be considered. Only by comprehensively evaluating these factors can merchants make informed decisions and achieve success on the OZON platform.