A Hong Kong or Mainland China based fulfilment center can help you distribute products directly from the factory to customers all over the world.
In this article, we list the leading China based fulfillment centers, including Floship, Easyship, Exchain, Shipwire and others.
In addition, we also cover the following:
1. Potential tax issues with cross border ecommerce 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?
What is a fulfillment center?
Fulfillment center offers ecommerce merchants warehousing (storage) and shipping services, that allow online businesses to operate without owning their own warehouse or physical storage space.
Sellers, or ecommerce merchants can directly send their inventory to the fulfillment center from where it is shipped to their customers.
Most fulfillment centers are integrated with ecommerce marketplaces and platforms like Amazon (which also operate their own fulfilment centers, Shopify, and eBay, making it easier for merchants to manage inventory and delivery products.
These are the top reasons why Importers choose fulfilment centers:
1. You can get closer to foreign markets. If you are based in the US, and want to sell in Europe, it’s way easier to send your goods to a fulfilment 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 fulfilment center to store and pack your products, compared to renting a warehouse and hiring employees.
3. Your international customers get receive the product in only a few days, rather than waiting more than a week.
In most cases, fulfillment centers go through the following process:
1. Ecommerce merchants (or the supplier in China) send their products to the warehouse
2. The center stores the products in the warehouse
3. 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
List of Fulfilment Centers
EXchain is a fulfillment center based in Hong Kong, that focuses on ecommerce 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”.
With more than 10 years in the service, EXchian now ranks as one of the leading fulfillment services in Hong Kong with shipments to all over the world.
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 ecommerce 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
Office address: Unit B, 24/F, Excelsior Building, 68-76 Sha Tsui Road, Tsuen Wan, NT, Hong Kong
DHL Hong Kong
DHL has recently started their fulfillment center in Hong Kong to offer a wide range of fulfillment and e-commerce delivery services to clients.
The fulfillment services offered by DHL are:
- Inbound freight
- Service Level Agreements
- Receiving, handling, and shelving
- Inventory tracking
- Pick and Pack service
- Returns handling
- Last-mile delivery services
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.
Office address: Tsing Yi Island, just 2 km away from Hong Kong International Airport
Easyship was founded in 2014 in Hong Kong, but now have offices and warehouses in Singapore, Netherlands, Australia, and the United States. With its smart and interactive online portal for clients, it allows ecommerce merchants to manage all their orders and shipping in one place.
The offer full ecommerce integration for all major ecommerce platforms like Alibaba, Amazon, and Shopify. You can use their services for B2C as well as B2C shipments.
Easyship is not a shipping company on its own, but if 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
Office address: 171 Hollywood Road, 2/F, Unit 4-6, Lee Wah Mansion, Sheung Wan, Hong Kong
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 ecommerce and crowdfunding fulfillment and Floship certified logistics plan services.
Floship connects and integrates with all major ecommerce 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.
They do not offer services for the products that weighs more than 10 kg.
Office address: Unit 1102, Tower 2 Ever Gain Plaza, 88 Container Port Road, Kwai Chung, NT, Hong Kong
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 ecommerce 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)
- Custom packaging
- Kitting & virtual kitting
Office 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:
- Ecommerce and e-fulfillment
- Inventory management
- Pick & Pack
- Wide range of value added services
- Domestic & worldwide distribution
- International freight forwarding
Office address: Room 1003-5, 10/F, Phase One, Modern Terminals, Berth One, Kwai Chung, New Territories, Hong Kong
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 Chinese ecommerce stores 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
- Package scanning
Office address: 1st Floor, Block 2, Meitai Sci-Tech Park, Guanguang Road, Guanlan, Longhua New District, Shenzhen, Guangdong, China
ChinaDivision is a leading Shenzhen-based fulfillment service provider, that offers a wide range of fulfillment services. These services include:
- Picking & packing
- QC and inspection
- Shipment management
- Returns handling
- Other value added services
It is a subsidiary of CNstorm Co., Ltd, that was founded in 2011 The head office and the warehouse of the ChinaDivision is based in Shenzhen.
It also offers easy integration with all major ecommerce platforms and offers dedicated service for Amazon, by the name of “Amazon China fulfillment Service”.
Office address: 4F, Block E, Feng huang gang No.2 Industrial Zone, Qianjin 2nd Road, Bao’an District, Shenzhen, Guangdong, China
Questions & Answers
Should we choose a centre in Mainland China or in Hong Kong?
There is a reason why most fulfilment 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 ecommerce 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.
Fulfilment centers and cross border ecommerce are about to turn the old system upside down.
Let me explain why:
a. Product is delivered from Hong Kong to customer in 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.
c. Hence, the transaction is completed without any taxes paid by the customer, and the seller.
The same can be applied to sellers that are avoiding import duties by sending shipments valued below 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 fulfilment 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.