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Imagine if you could deliver products directly from your factory in China to consumers in Europe, America, and Asia. Hong Kong and Mainland China-based fulfillment centers can almost make that dream become reality – by storing, packaging, and shipping your products directly to your customers.
In this article, we list some of the leading e-commerce fulfillment centers based in Hong Kong and Mainland China – including Zhenhub, Floship, Easyship, Shipwire, and many others.
In addition, we cover the following:
1. Potential tax issues with cross border e-commerce fulfillment
2. When does it make sense to use a fulfillment center in Hong Kong or Mainland China?
3. Should you select a fulfillment center in Hong Kong or Mainland China?
Listed of Fulfilment Centers
DHL Hong Kong
Send From China
Morning Express & Logistics
How to reduce your fulfillment center costs: By Zhenhub
Interview with Steven Suh: Founder of Floship.com
What is a fulfillment center?
Fulfillment center offers e-commerce merchants warehousing (storage) and shipping services, that allows online businesses to operate without owning their own warehouse or physical storage space.
Sellers or e-commerce merchants can directly send their inventory to the fulfillment center from where it is shipped to their customers.
Most fulfillment centers are integrated with e-commerce marketplaces and platforms like Amazon (which also operates their own fulfillment centers, Shopify, and eBay, making it easier for merchants to manage inventory and delivery products.
These are the top reasons why importers choose fulfillment centers:
1. You can get closer to foreign markets. If you are based in the United States and want to sell in Europe, it’s way easier to send your goods to a fulfillment center in the EU – compared to setting up your own warehouse or sending products from the US.
2. It’s often cheaper to use a fulfillment center to store and pack your products, compared to renting a warehouse and hiring employees.
3. Your international customers get to receive the product in only a few days, rather than waiting for more than a week.
In most cases, fulfillment centers go through the following process:
1. E-commerce merchants (or the supplier in China) send their products to the warehouse
2. The center stores the products in the warehouse
3. The customer makes a purchase and orders from the merchant’s website
4. The fulfillment center picks & packs products
5. The fulfillment center ships products to each individual customers
You can quickly compare shipping prices to different destinations with an online calculator. This means sellers can choose the most cost-effective shipping solution for their orders to more than 100 countries.
They work with multiple well-known shipping companies that include DHL, China Post, FedEx, and SF Express. They also offer full e-commerce integrations for all major e-commerce platforms like Shopify, Woocommerce, and Amazon.
The fulfillment and shipping services offered by ZhenHub are:
Pick and pack
Address: 777 Lai Chi Kok Rd, Cheung Sha Wan, Hong Kong S.A.R (China)
Easyship was founded in 2014 in Hong Kong, but now has offices and warehouses in Singapore, Netherlands, Australia, and the United States. With its smart and interactive online portal for clients, it allows e-commerce merchants to manage all their orders and shipping in one place.
They offer full e-commerce integration for all major e-commerce platforms like Alibaba, Amazon, and Shopify. You can use their services for B2C as well as B2C shipments.
Easyship is not a shipping company, but it connects sellers with shipping companies like DHL, FedEx, and others. This allows sellers to choose the most cost-effective shipping solution for their orders to more than 100 countries.
The fulfillment services offered by Easyship are:
Pick & Pack
Address: 171 Hollywood Road, 2/F, Unit 4-6, Lee Wah Mansion, Sheung Wan, Hong Kong S.A.R (China)
Floship is also a Hong Kong-based fulfillment company that was founded in 2015. It offers services like:
Pick & Pack
In addition, they also offer value-added services like Quality Control (QC), Kitting, and Marketing Inserts.
Their services are offered under different service categories that include e-commerce and crowdfunding fulfillment and Floship certified logistics plan services.
Floship connects and integrates with all major e-commerce platforms like Shopify, Amazon, WooCommerce, Magento, and BigCommerce. They connect sellers with the leading shipping companies to deliver their products.
You can use their services if you’re shipping more than 300 orders a month, or at least have 500 crowdfunding backers. In addition, your international sales must be 30% of your sales.
Address: Unit 1102, Tower 2 Ever Gain Plaza, 88 Container Port Road, Kwai Chung, New Territories, Hong Kong S.A.R (China)
EXchain is a fulfillment center based in Hong Kong, that focuses on e-commerce order fulfillment. The fulfillment center is owned by SFC Services Limited, a China-based Group that was founded in 2007. SFC Services Limited operates a similar fulfillment and delivery company in China, called “Send From China”.
They also have a warehousing network in Hong Kong, Europe (Germany), the United States, and China. For China, they also offer discounted rates and tailored-made shipping routes for clients, while they offer same-day delivery within Hong Kong.
Their online system automatically imports orders using an API service from all major e-commerce platforms like Wish, Alibaba, Amazon, and eBay.
They offer both delivery services (e-shipment) and fulfillment solutions to their clients in Hong Kong and Mainland China.
The information related to their pricing for a 225 g shipment is as follows:
HK$ 78 for Europe
HK$ 76 for Australia
HK$ 63 for the United States
Address: Unit B, 24/F, Excelsior Building, 68-76 Sha Tsui Road, Tsuen Wan, NT, Hong Kong S.A.R (China)
They also offer quick domestic and international delivery, with 1-2 days domestic shipment through Express Shipping and 1 to 4 days international delivery.
They also have a 27,000 sq ft warehouse in Hong Kong, situated right beside the international airport. In addition, they also have several other offices and warehouses in Mainland China, that includes Urumqi, Beijing, Harbin, Shanghai, and Taipei.
Address: Tsing Yi, Hong Kong S.A.R (China)
Shipwire is a global fulfillment company and a brand of Ingram Micro, that owns more than 154 fulfillment centers in 45 countries around the globe.
Shipwire is a leading Europe-based e-commerce service provider that also has offices in China and Hong Kong. They currently have a fulfillment center and 125,000 sq ft warehouse in Shenzhen, and another warehouse and office in Hong Kong.
They work with multiple well-known shipping companies that include DHL, Hong Kong Post, FedEx, and SF Express.
Their services include:
Same-day order processing
Return shipping optimization
Order optimization (offers the most competitive rates based on multiple factors)
Kitting & virtual kitting
Address: 3/F, Goldlion Holdings Centre, Siu Lek Yuen, Shatin, Hong Kong
V Logic is a Hong Kong-based global fulfillment and delivery company that was founded in 2000.
The services offered by them are:
E-commerce and e-fulfillment
Pick & Pack
Wide range of value-added services
Domestic & worldwide distribution
International freight forwarding
Address: Room 1003-5, 10/F, Phase One, Modern Terminals, Berth One, Kwai Chung, New Territories, Hong Kong S.A.R (China)
Send From China
Send From China is a subsidiary of SFC services and a sister company of EXchain, that operates in Hong Kong.
They’ve fulfillment centers and warehouses located in Shenzhen, Shanghai, and Dongguan. They offer services to mainly made-in-China products and to help both domestic Chinese e-commerce stores and international companies to store and ship their products all over the world.
They also offer easy online store integration with Web Service APIs that allows sellers to track orders, manage inventory, and keep an eye on product information and order processing.
Their fulfillment services include:
QC and product labeling
Address: 1st Floor, Block 2, Meitai Sci-Tech Park, Guanguang Road, Guanlan, Longhua New District, Shenzhen, Guangdong, China
Asendia was launched in 2012 by La Poste and Swiss Post. They have over 32 offices in North America, Europe, Asia, and Oceania, and provide shipping services to over 200 countries.
Asendia offers integrated fulfillment and distribution solutions in Hong Kong, Australia, Singapore, across Europe, and the US. They have 3 warehouses and distribution centers in Hong Kong and China that provide over 17,000 square feet of storage space.
Asendia also takes sustainability into account, from energy-efficient transport to investment in carbon offsetting projects. For example, they have contributed to a climate protection project in Switzerland.
The fulfillment services offered by Asendia are:
Address: 5/F, Adp Pentagon Centre, 98 Texaco Rd, Tsuen Wan, Hong Kong S.A.R (China)
Borderless 360 offers a SaaS application that can help with shipping, fulfillment, and other logistic solutions. Customers can monitor and control their inventory via a cloud-based platform. They offer warehousing in the US, UK, Canada, Netherlands, Australia, and Hong Kong.
They offer postal, hybrid, and express solutions through their integrated courier network. Also, you can use their application to generate shipping dcouments and commercial invoices.
The fulfillment services offered by Borderless360 are:
Address: Central and Western District, Hong Kong S.A.R (China)
Morning Express & Logistics Limited
Morning Express & Logistics Limited was founded in 1987 in Hong Kong, aimed at providing courier services to businesses. They operate two warehouses in the city, which provide storage services for customers.
They also provide special services for eCommerce merchants, such as insertion of promotional material, bundling services, return goods management, palletization, and labeling.
The fulfillment services offered by Morning Express & Logistics Limited are:
Real-time stock balance
Pick and pack
Office Address: Flat 1-5, 1/F, Yee Kuk Industrial Centre, | 555 Yee Kuk Street, Cheung Sha Wan, Kowloon, Hong Kong S.A.R (China)
NextSmartShip is a fulfillment center headquartered in Shenzhen, China. They also operate in other Chinese cities, the US, the EU, and Australia. They provide shipping services that cover around 200 countries.
They assign each of their clients to a service manager, with whom you can discuss and ask questions during the process. They can also provide solutions for order fulfillment, inventory management, and eCommerce integration.
The fulfillment services offered by NextSmartShip are:
Pick and pack
Kitting and assembly
Custom packaging and labeling
Office Address: Room 607, Building A, Lianchengfa Smart Industrial Park, Gushu, Baoan District, Shenzhen, Guangdong, China
China Division is a supply chain service provider, covering product procurement, warehousing, order fulfillment, and logistics transportation. They have a warehouse located in Shenzhen, China, and they can provide up to 30 days of free warehousing to customers.
China Division also provides FBA service including generating FBA labels, packing, FBA labels, and invoice-preparing. They claim to notify you via email if they find out that some of your products are non-compliant products.
The fulfillment services offered by ChinaDivision are:
Picking and packing
Office Address: 5th. Floor, Unit A, Building 2, Yongqi Technology Park, Yintian Industry Zone, Xixiang, Baoan District, Shenzhen, Guangdong, China
SF International is a delivery services and logistics company based in Shenzhen, China. They provide a wide range of logistic services, including overseas fulfillment, warehousing, E-parcel, heavy freight, and more.
Their service network covers Singapore, South Korea, Malaysia, Japan, Thailand, Vietnam, and many other countries. Also, they have over 100 warehousing locations in the US, UK, Australia, Germany, and more.
The fulfillment services offered by SF international are:
International heavy freight
Standard and economy express
Office Address: 36 Tsing Yi Rd, Kwai Tsing, Hong Kong S.A.R (China)
Questions & Answers
Should we choose a fulfillment center in Mainland China or in Hong Kong?
There is a reason why most fulfillment centers are based in Hong Kong. While the city is still part of China, Hong Kong is a free port without import duties.
Products can be freely transported from the mainland to Hong Kong without the need to pay any import taxes.
Hong Kong is also a leading logistics hub, that can offer lower costs than the Mainland in many cases.
My impression is that the fulfillment centers in Mainland China primarily work with e-commerce companies based there, while those in Hong Kong focus more on international clients.
Why can’t I just let the supplier ship the products to the end customers?
Manufacturers are not logistics companies. They don’t have the expertise or personnel to efficiently store, pack and deliver products to customers around the world.
In the unlikely scenario that a supplier does offer such services, there is no way they can compete on price and delivery speed with any of the companies listed in this article.
Who pays import duties and other taxes if the products are shipped directly from China to the end customer?
For centuries, Importers bring in foreign products, pay import taxes, and sell the items domestically.
Fulfillment centers and cross-border e-commerce are about to turn the old system upside down.
Let me explain why:
a. Product is delivered from Hong Kong to a customer in the EU (The seller is also based in the EU)
b. The customer receives the items but doesn’t bother to pay import duties and VAT on the purchase (the customs tax less than 10% of all incoming B2C shipments). This is also the case with dropshipping.
The same can be applied to sellers that are avoiding import duties by sending shipments valued below the duty threshold from abroad, thereby avoiding taxes.
In essence, sellers exploit loopholes in the system. It may work now, but the tax authorities can decide to crack down on this practice by tomorrow.
One way they could do this is by tracking all your cross-border shipments and send a tax bill covering the last few years.
That will likely put you out of business.
Nobody knows for sure what will happen, but there are clear signs that the ‘golden age’ of cross border commerce is over.
But don’t expect anyone with a vested interest to agree with this assessment.
So, when does it actually make sense to use a fulfillment center in Hong Kong or Mainland China?
Taxes are only a problem when you are shipping from abroad to your home market. If you’re based in the EU, you should not be ‘dropshipping’ products into the EU.
The same thing applies to the United States, Canada, Australia, and other markets. Well, even China itself.
However, a US company is not responsible for paying taxes in the EU, or Australia.
As such, using a fulfillment center in Hong Kong or Mainland China to distribute goods to third countries, is not a problem.
For small businesses, it’s way cheaper to utilize a Hong Kong-based fulfillment center, rather than sending goods to different centers around the world.
That’s why fulfillment centers in Hong Kong and Mainland China still makes sense for many businesses.
How to reduce your fulfillment center costs: By Zhenhub
Learn how you can drastically lower your shipping costs in this Q&A written by Jhanvi Shah from Zhenhub.com in Hong Kong.
How many shipments are required on a monthly basis for a fulfillment center to make sense?
The number of monthly shipments is a major deciding factor; for example, if only 50 shipments are being processed per month, this could be done by the selling company itself as it is an average of (50 shipments/30 days per month) 1-2 shipments per day only.
However, if a company is working with orders on a larger scale, of at least 100 shipments, it would be highly recommended to consider using a fulfillment center in order to help organize and deliver your shipments.
On the other hand, if the company requires delivery to several countries that it is not based in, a fulfillment center will be required regardless of the volume level.
At the end of the day, the company must decide on its priorities; whether it values money or time.
With the aid of a fulfillment center, delivery costs and location can be managed easily, quickly, and efficiently. Alternatively, if a company chose to pack and deliver their product themselves, costs would be reduced albeit delivered inefficiently.
What sort of shipping options are best if I prioritize low cost over fast delivery?
Furthermore, the amount of money a firm would like to spend must be considered. As such, if a firm prioritizes cheaper costs over faster delivery, there are several options to consider. In particular, while most would prefer postal, direct injection shipping options have been gaining demand as of recently.
Direct injection shipping options follow a 3 step method; consolidate, ship, and pass on to local couriers. The first step requires the consolidation of the goods for which fulfillment centers must work with the firms directly. Next, the goods are shipping from the fulfillment center to its fulfillment warehouse.
Firms such as Zhenhub, organize your goods into locational-based warehouses which are closest to the order’s final destination. Finally, the goods are passed onto the local courier who ships them from the warehouse to their final destination.
While postal shipping has the ability to deliver to all locations at a cheap cost, the multiple occurrences of lost goods make it an unreliable method. On the other hand, by spending slightly more on direction injection shipping methods through a fulfillment center, you can ensure reliable, faster, and highly efficient delivery.
When choosing a fulfillment center, the firm must ensure that the fulfillment center has access to warehouses in the operating countries that it delivers to.
Do you have a cost example?
In order to put this into perspective, consider an order for a t-shirt which on average weighs 150g. Delivery is required for the product to be shipped from Hong Kong to the United Kingdom. Hong Kong Post estimates that at the cheapest, costs would be USD$2.74 for shipping services. However, this would take 42-54 days with the inability to track your order.
Similarly, if you were to use DHL Express, it would cost USD$42.33 for delivery processed within 2-3 working days. Alternatively, if you were to employ a fulfillment center such as Zhenhub, it would cost USD5.23 for 4-7 working days shipment.
This would lead to a saving of nearly 87% while keeping customers satisfied with speedy delivery time.
Furthermore, fulfillment centers ensure a much more personalized service as a benefit to your customers and the firm itself.
Product (HK to UK)
Measurements (kg, l x w x h)
0.37kg, 27.90cm x 9.00cm x 6.00cm
DHL Express: USD$42.33, 2-3 days
ZhenHub GB Direct HK: USD$6.81, 4-7 days
6.60kg, 60.00cm x 34.00cm x 75.00cm
DHL Express: USD$297.80, 2-3 days
Linex: USD$85.36, 3-7 days
Generic 30oz Water Bottle
0.14kg, 20.50cm x 6.40cm x 5.40cm
DHL Express: USD$42.33 2-3 days
ZhenHub GB Direct HK: USD$5.16, 4-7 days
How do I optimize the packaging dimensions to reduce the delivery fee?
In order to reduce delivery fees and fulfillment costs, certain measures can be taken. Firstly, you must ensure that your packaging is as small as possible. This is because most shipping costs depend upon volume weight rather than the actual weight of the good.
Thus, the optimal solution would be to reduce the size of the packaging so that the volume weight does not exceed the actual weight of the shipment. This is a crucial step for reducing delivery fees for international air shipments.
Do you have any other suggestions for how sellers can reduce their fulfillment costs?
By specializing in certain countries, sellers will be able to reduce their fulfillment costs significantly. In particular, it would be best to specialize in countries with lower labor costs and minimal regulations, such as import duties, as well. For example, countries such as China, Vietnam, and the Philippines would be ideal.
By selling in the aforementioned countries, management costs for warehouses in the locations would be reduced significantly. In comparison to having fulfillment warehouses in locations such as the UK where the hourly minimum wage is USD$ 9.93, it would be much more cost-efficient to use a fulfillment center based in Guangdong where the minimum wage is USD$3.07, reducing costs by nearly 70% per hour.
In addition to lower labor costs, specializing in certain countries and building volume in those specific countries only would allow for a reduction in importation, ocean freight, and inventory management costs. With a reduced number of warehouses required, fewer employees would be required and rental costs would reduce too.
Furthermore, fulfillment costs can be reduced through efficient inventory management. By ensuring that inventory is delivered on time and sent out quickly rather than storing inventory and delivering whenever required, holding costs are noticeably reduced.
Assuming I mainly sell in the US or EU, Is it more cost-effective to use an HK or local fulfillment center?
Certain factors must be considered in order to judge whether it is more cost-effective to use a Hong Kong-based or local fulfillment center; Size and Weight, Volume, and Import duties and Taxation. The example of a double-sized mattress, which is 30kg on average, will be used in order to help visualize the issues and solutions.
Employing a Hong Kong-based fulfillment center for shipping to the United Kingdom as an example would require paying for a container (around USD$2000) in order to ship the orders. However, factors to be considered include how many mattresses would fit into the container.
If only a few pieces fit into the container, leading to high costs per mattress for shipping, it would be more reasonable to employ a locally based fulfillment center.
Furthermore, the number of goods able to fit in the container is independent of the weight of the goods. This is because as mentioned previously, the seller must make sure that the volume weight of the container does not exceed the actual weight of the product.
With this in consideration, economies of scale allow for the distribution of costs to be spread across the number of goods able to fit into the container. Thus, reducing the overall shipping costs per mattress.
Moreover, Value Added Tax (VAT) and other costs must be taken into account. If the cost for the product is below £15, it is exempt from Value Added Tax. In this case, it seems reasonable to deliver the product from a Hong Kong-based fulfillment center as well.
On the other hand, if the product, such as a mattress, costs above £15, the cost of import duties in addition to the Value Added Tax will increase the cost to a level where it is no longer attractive enough to compete with cheaper local goods.
Lastly, a few additional factors to consider when deriving a cost-risk analysis between Hong Kong and locally-based fulfillment centers would be;
1. Customer Feedback (in terms of time taken and any damages that could be incurred to the product during shipping)
2. Changing customs and legal regulations in countries
In which situation would you say it makes sense to deliver products from Hong Kong to customers worldwide?
In order to reduce delivery fees and fulfillment costs, only lightweight and small products are recommended to be delivered from Hong Kong to customers worldwide. On the other hand, it is also recommended to deliver products from Hong Kong to customers worldwide if delivering to several countries.
Most US fulfillment centers employ a Hong Kong base in order to easily and cheaply deliver products from China. With the aid of Hong Kong’s ports, they are then able to efficiently distribute these goods to customers outside of the United States, especially those in the Asia Pacific and the Middle East.
ZhenHub is a global automated fulfillment provider. Our mission is to help businesses scale quickly, easily with affordable shipping and fulfillment. We have fulfillment centers all around the world in the US, China, UK, Australia, Hong Kong, Canada, France, Germany, Italy, Philippines, and Korea. You can move your goods with ease from your factories to your customers and distributors around the world. Leave operations and shipping to us and focus on expanding your business.
Interview with Steven Suh: Founder of Floship.com
These days it’s common that E-commerce companies don’t start with one target market in mind. Instead, European importers start selling in the US and EU on day one, and vice versa.
For Startups, it’s expensive to ship stock from the manufacturer to several countries – not to mention how complicated it can be to get a grip on taxes and customs procedures in all those countries.
This is why more companies are using Hong Kong as their main fulfillment center. From Hong Kong, a freeport in southern China with no import duties, you can ship products directly to customers in the US, Europe, and the Asia Pacific Region.
In this interview with Steve Suh at Floship in Hong Kong, you will learn how your business can save time and money using Hong Kong as a fulfillment center.
Steve Suh, please tell us a bit more about yourself and your work at Floship in Hong Kong
I am Korean-American from Philadelphia. I Embarked on my start-up career in Shanghai, where I got involved with a Sequoia Capital-backed start-up called MyLuxBox, a cosmetics subscription box start-up that later got acquired by jumei.com.
After that exit, I joined China’s largest cross-border e-commerce logistics company 4PX, where I gained knowledge on the industry and led me to kick-start Floship, a platform catered to international merchants – whereas 4PX was China merchant focused.
Regarding work at Floship Hong Kong, it started in February 2015, went through a couple of rounds of funding led by prominent Asia VC’s and angel investors.
To date we’ve raised more than USD 7 million and, as we continue growing and adding new products, for example, we are soon launching an FBA prep service, a China e-commerce B2C inbound channel, global warehouses and a few other projects we are excited about but aren’t ready to disclose yet that will continue to make it easier for online sellers of all sizes to take advantage of marketplaces globally and participate in the world economy in ways never before possible.
Many of our readers want to know if it’s possible to deliver products, one piece at a time, directly from Mainland China or Hong Kong – to their customers all over the world. Is this possible today?
Yes. This is one of Floship’s most popular offerings.
As far as whether or not this model is possible – it is now in a mature state: it has been going on for over 10 years.
Due to the high volume of e-commerce cross-border shipments from China and Hong Kong, there are now cost-effective and fast shipping options that have opened up to facilitate cross-border trade.
What’s the shipping cost per unit I should expect?
Of course, as I’m sure many of your readers who have ever shipped anything, cost, when it comes to shipping is dependent on many factors; such as weight, dimensions, and method of shipping.
But, to put things into perspective, for example, say you wanted to ship an iPhone weighing about 200g; this you can ship to the US for a little less than US$5 with a relatively fast shipping time of about four to eight days and delivered the last mile by USPS. At that rate, it’s comparable to domestic shipping rates.
Does Floship charge only for freight or are there other fees to expect when using a fulfillment center in Hong Kong?
For storage and pick & pack, we charge in a tiered system. The more orders you ship, the cheaper the storage and pick & pack rates become. We charge per item picked.
Are there any minimum volumes or thresholds to be aware of when shipping B2C from Hong Kong?
We have a 300 parcel shipment minimum and there is a US$1,000 monthly spend minimum, or retainer, for those that do not meet the shipment thresholds.
In our experience, for clients that do not meet the monthly shipping thresholds but are happy to pay the US$1,000 per month retainer, they tend to have products with higher margins.
On the other hand, for sellers with low-margin goods that cannot meet our 300 order per month minimum shipping requirement the US$1,000 per month retainer often is too high to be profitable for them. In cases like this Floship would not be a good fit.
In your experience, is it more common to use Hong Kong as a fulfillment hub for the Asia Pacific market, or also Europe and America?
I’m clearly biased because I’m based here and because it is my focus but, in my experience, Hong Kong is the preferred and most common fulfillment hub.
Despite my own personal affinity for the place, there are more objective reasons that make Hong Kong one of the most strategic fulfillment hubs in the world for global shipping, mainly due to the high international shipping costs to ship from the other markets you mentioned.
Not to mention, Hong Kong’s proximity to mainland China, its status as a duty-free port, and the empirical data prove this out, as far as air cargo – Floship’s specialty – is concerned. For example, HKTDC reports, Hong Kong too, “ranks as the world’s busiest airport in terms of international cargo throughput since 2006”.
Actually, it was for this very specific reason that Floship was founded in Hong Kong.
What’s the delivery time from Hong Kong to the US or Europe?
When choosing Express Couriers like FedEx or DHL, you can ship within two to three days worldwide, and then, for traditional postal methods, the delivery window tends to be more between 7-14 days on average.
With that said, there are also hybrid solutions, something often referred to as postal injection in industry-speak, which crossover between postal and Express that will allow you to ship to major destinations in as fast as 4 days.
What are the benefits of shipping from Hong Kong, rather than Mainland China?
Firstly, Hong Kong is a free trade port and you can qualify for an export tax rebate of up to 17% upon bringing your stock into Hong Kong.
You can work with a reliable postal option such as Hong Kong Post (as opposed to China Post) where tracking is more stable and less incidence of lost parcels.
Do I need to open a Hong Kong company to use it as a logistics hub?
If I use Hong Kong as my logistics hub, where do I pay taxes?
Hong Kong having the status as a free trade port, so, with the exception of only four dutiable goods. Those being tobacco, hydrocarbon oil, alcoholic beverages, and methyl alcohol. The import and export clearance regulation in Hong Kong is really the best in the world and can be digested in under a minute right here (HK Customs official site).
I’m not a tax adviser but – the general practice and law as I understand it is–for people who do not reside in Hong Kong tax is exempted for income not sourced in Hong Kong.
So when an individual is using Hong Kong as a storage or transshipment center for their goods and is not vending products in the SAR, then there are no taxes to pay.
Taxes in one’s home country or the destination country of the goods would be subject to the jurisdictions of the destination port. While an individual tends to be taxed based on their country of residency
One of the key benefits of cross-border shipping is that for large e-commerce markets such as the US and Australia, any shipment declared under US$800 can enjoy duty-free customs clearance where the seller or the buyer would not have to worry about duties or taxes.
Hence, Floship’s B2C model – we have really built the company based on this strategy and offer that opportunity to our clients and their customers.
In other markets where tax thresholds are quite low, such as the EU, it depends on the shipment incoterm (DAP or DDP) where you decide if you want to take the tax responsibility or whether the consignee is responsible.
Thank you. How can Floship help our readers take the next step and start using Hong Kong as their logistics hub?
Thanks for this opportunity to reach your readers.
To help people understand the opportunities Floship offers, they can visit our website at www.floship.com, we also have a popular blog that may be of interest to those actively participating in the cross-border e-commerce space, you can find that here.
Co-founder of Asiaimportal (HK) Limited and based in Hong Kong. He has been quoted in and contributed to Bloomberg, SCMP, Alibaba Insights, Globalsources.com, China Chief Executive, Quartz Magazine and more.