"Cross-border stores have low startup costs, while domestic stores attract high traffic"—most sellers have heard these two statements. But very few people actually sit down and crunch the numbers for both options.

This article won’t get into concepts—it’ll just crunch the numbers.

💡 If you want to calculate the actual profit for your product under different business models, feel free to add me on WeChat. qcygscszk or call 18676749275, text 【Profit Projection】 to receive a personalized, one-on-one financial plan.

01 Assumption: For a single product, monthly revenue is 500,000 RMB

For the sake of a fair comparison, let’s assume you’re selling the same product at the same price and with the same monthly sales volume. Since the baseline data is the same for both sides, we’ll focus solely on comparing cost structures.

Cost Structure of Cross-Border Stores

For a cross-border store with monthly sales of around 500,000, if it does not register for an RFC tax number, tax expenses alone account for 36%. Combined with a high reliance on advertising, the net profit is virtually negative.

02 Cost Structure of Local Stores

03 Where Is the Profit Gap?

The three most critical profit margins on both sides:

• Tax Cost Difference: 36% vs. 10.5%—with a monthly turnover of 500,000, the difference is approximately 127,500—this is the largest hidden profit gap
• Difference in logistics costs: Local Warehousing vs. Cross-Border Logistics—A Difference of About 20,000
• Advertising Cost Variance: Organic traffic on Full vs. traffic driven solely by ads—the difference is about 25,000

Combined, these three generate monthly sales of around 500,000,Domestic stores have approximately 170,000 more in net profit margin than cross-border stores.

📌 Want to know the specific profit difference for your product category under these two models? Contact us for a free estimate.
Cell phone: 18676749275 ｜ WeChat: qcygscszk

04 When to Switch

It’s not that you have to reach 500,000 in monthly sales to open a domestic store—it’s that once your monthly sales have picked up, continuing to operate a cross-border store is a waste of profit.

Here’s a simple rule of thumb: If your monthly turnover consistently exceeds 100,000, the one-time costs associated with setting up a local store (company registration, tax ID, and store setup) can typically be recouped within 3 to 6 months through tax savings and increased traffic.

The key isn’t “whether it can be done,” but “when to make the move.” Doing your own numbers is more important than listening to others say that “local stores are better.”

📞 If you’d like to conduct a precise assessment of the optimal timing for a switch based on your monthly revenue and product, feel free to contact Qicaiying.
Cell phone: 18676749275 ｜ WeChat: qcygscszk

Why choose Enterprise Caiying

What Can We Do for You—

• Domestic Company Registration: A valid business address (owned property), with cooperation for on-site bank verification, account opening, and invoice issuance; not a virtual or registered-only address.
• Mexican RFC Tax ID: Choose from two options—affiliation with an SA or self-registration. Each ID is linked to a single store on a one-to-one basis; we do not put client stores at risk.
• Meike Duo Store Setup: Dual-mode coverage for cross-border and local stores, providing end-to-end support from scratch—not just helping you submit documents
• Operations Coaching: Comprehensive coverage of product selection, listing, warehousing, advertising, and post-campaign analysis—it’s not just about creating a group chat and calling it a day

Why Trust Us—

• Founded in 2015, we have supported more than 500,000 business owners and help establish over 20,000 new domestic companies and 10,000 new Hong Kong companies each year.
• A professional team of over 400 people: domestic business services consultants with at least 5 years of experience, international experts with an average of over 8 years of experience, and an accounting team in the Greater Bay Area with an average of over 10 years of experience
• Headquartered in Shenzhen, with offices in Beijing, Shanghai, Guangzhou, and Hangzhou; 4 corporate secretarial firms in Hong Kong and 1 in-house accounting firm
• The in-house “Yichuangbao” CRM/ERP system, developed over five years with an investment of tens of millions, features standardized and visualized delivery processes.

For more information on opening a store on Meike, please contact Qicaiying:

📱 Cell: 18676749275
💬 WeChat: qcygscszk