Do cross-border so many years, you may find a phenomenon: many people just enter the field full of confidence, a month or two after the beginning of confusion. Why? Because they chose a road that is destined not to go far from the starting point.

Today, let’s talk about an issue in the South African e-commerce market that many people haven’t quite figured out—Why, after years of focusing on Takealot, local stores are the true destination.

I. It’s not a question of “whether it can be done,” but rather “whether it’s profitable.”

Let’s start by clarifying one concept: There are two ways to open a store on Takealot—cross-border storerespond in singinglocal storeThe

A cross-border store is one where you register using a Chinese business license, the platform handles direct shipping, and funds are transferred back to China via a third-party payment service. A local store is one where you register a South African company, store inventory in a local South African warehouse, and receive payments directly into a local South African corporate account.

Many new sellers believe that cross-border e-commerce has a low barrier to entry and a quick startup process, so they decide to give it a try first. This approach isn’t wrong in itself, but the problem is:If you focus solely on cross-border stores, you’re essentially limiting yourself to a “small-profit” model right from the start.

The core advantage of brick-and-mortar stores isn’t a question of “whether it can be done,” but rather a question of “how much profit can be made.”

II. Cross-Border Stores vs. Domestic Stores: A Table Showing the Differences at a Glance

First, let's look at the data comparison for key metrics:

Takealot in 2026, where those who win logistics win. The platform’s algorithm is very straightforward: whoever can get products to consumers faster ranks higher. Data shows that products stocked in Takealot’s official warehouses receive more than 30% more exposure than cross-border direct-mail items.

III. How big is the profit gap? A quick calculation will make it clear.

What is the biggest challenge many sellers face when running cross-border stores? It isThe portion of the money that “disappeared” along the wayThe

The biggest hidden cost for cross-border stores lies in the process of repatriating funds.

The payment you received from Takealot is in South African rand, which you’ll need to convert through a third-party payment provider to bring the funds back to your home country. There are at least three layers of losses involved:

• Platform Commission: Cross-border stores receive payments through third-party payment providers, and the platform charges an additional fee, which is approximately 3%.
• Exchange Rate Spread: The payment cycle is about a week longer than for domestic stores, and the exchange rate fluctuations during that week represent a hidden cost you end up bearing. Sometimes payments are settled at the lowest rate, and when transaction volumes are high, the foreign exchange losses can be staggering.
• Currency Exchange Fees: Every currency exchange involves a fixed service fee and hidden exchange rate spreads.

This is where the advantages of local stores really shine:By routing payments directly through local South African bank accounts, you can work with various payment processors to get better exchange rates, smaller spreads, faster payouts, and lower overall fees.

All things considered, the difference in overall profits between domestic and cross-border stores,It can reach 5% or even 6%The

Here’s an example: Suppose your monthly turnover reaches 500,000 RMB; the difference between 61TP and 3T is 30,000 RMB. Over the course of a year, that adds up to 360,000 RMB. You’re working just as hard to select products, pack them, and ship them—why should someone else pocket that extra profit?

IV. While there were concerns in the past, Chinese legal entities can now directly register companies in South Africa

At this point, many people may have a concern: Local stores are great, but isn’t registering a South African company a hassle? Will I need to find a local to act as a nominee? Are there risks associated with nominee ownership?

This was indeed a problem in the past. In many countries (such as India and Thailand), foreign-invested companies are required to have local nationals serve as directors, which means they do not retain control—a situation that carries significant risks.

But South Africa is different. South Africa’s foreign investment policies continue to improve in 2026, and the process for registering a company has become more transparent. Under South African law, at least one director is required, and starting in 2025, at least one director must be a non-resident of South Africa. This means that having one local resident among the directors is sufficient,Chinese legal entities can register a company directly without needing to find a local resident to serve as a shareholder or act as a nominee shareholder; control of the company and the flow of funds remain entirely in their own hands. Don't worry about the uncertainty associated with nominal ownership or nominee arrangements.

Although the board of directors must include one local resident, a local operational partner—such as a financial advisor or logistics agent—can serve as a nominal director, while key control and beneficial ownership remain with the Chinese seller. In addition, a local corporate bank account can be opened at the same time; the four major commercial banks (Standard Bank, FNB, ABSA, and Nedbank) all support account openings for foreign-owned companies.

V. The platform’s strategy is also shifting toward local stores

If the profit potential isn't enough to convince you, take a look at the platform's strategic direction.

Takealot is currently running a major promotion “Localized Fulfillment” ...requiring cross-border stores to register a South African company and transition to a local entity within 12 months.Traffic and cash flow are being fully directed toward sellers with local warehousesThe

What’s more noteworthy is that the platform’s 2026 recruitment policy for cross-border stores has been significantly tightened: a deposit of 3,000 yuan per store is required for onboarding, and the full amount will be refunded only if sales reach 40,000 rand (approximately 16,000 yuan) within four months of opening; Business licenses must have been in effect for at least six months, and the registered capital must be ≥350,000 yuan. Sole proprietorships are now completely excluded; the self-application channel has been closed, and merchants must join through officially authorized channels.

Local stores, meanwhile, are given the highest priority in search rankings and event sign-ups, and are regarded as the platform’s “Our own children” . Currently, Chinese sellers account for less than 3% of the sellers in the Local Store section. The platform has adopted a “strict review, gradual approval” strategy for onboarding new sellers, with the intention of controlling the influx of sellers and making every effort to maintain a healthy competitive environment in the Local Store section.

If you already have a certain scale of operations or plan to stay in this market for the long term, there’s really no need to limit yourself to cross-border stores. Domestic stores are the path that will truly allow you to gain a foothold and generate sustained profits.

VI. How can we help you?

Another concern many people have is: Local stores are great, but are they hard to get into? Is the process complicated?

We actually have a well-established process in place. Currently, onboarding is primarily done through targeted invitations from the platform’s business development managers. We can coordinate the necessary resources, and under normal circumstances, the store can be launched in about a week; the success rate is manageable.

Now, let’s talk about the company. We also got our start in South Africa doing offline trade, and we have a team there, soCompany Registration, E-commerce Platform Onboarding, Business Bank Account OpeningYou can complete this entire set on your own.

Overall, the advantage of local stores lies not only in higher profits, but more importantly,Stable and controllable...ideal for those who truly want to build a long-term presence in this market.

put at the end

Cross-border stores can help you test the waters at a low cost and gauge market interest. But if you’re convinced this market segment is worth pursuing, you should set up a local store as soon as possible.

If you're still debating whether to open a cross-border store or a domestic store, or if you're unsure which path is right for you, feel free to ask me directly. I'll help you work out the entire structure and costs so you don't head in the wrong direction from the start.

After all, choosing the right path is more important than running hard.