Why Your eCommerce Business Should Ship Through Hong Kong

Why Ship Through Hong Kong

eCommerce is a thriving market. In 2017, global eCommerce sales accounted for around $2.3 trillion US dollars and this number is expected to grow to $4.88 trillion by 2021. Although it is a relatively new phenomenon, eCommerce is opening up the world and making it easier for businesses to sell their products to consumers all over the globe.

 

If you’re running an eCommerce store, you’ve probably considered expanding outside of your domestic market. These days, there are relatively few limits to marketing your product internationally and the gains can be huge. Once you get the logistics right, selling internationally can let you reach fast-growing markets like the Asia-Pacific region. After all, according to a recent McKinsey report, almost one and a half billion people will join the global middle class by 2020 and a staggering 85% of them will be in Asia-Pacific countries.

 

However, the logistics really do matter. eCommerce experts recommend finding a logistics partner early on to help you focus on running your business while the experienced professionals make sure that your products get to your customers quickly and efficiently. 66% of shoppers have chosen to shop with a different retailer because their delivery options were more appealing, and 96% said that a good delivery experience would encourage them to buy from the same retailer in future.

 

Because of these logistical reasons, many eCommerce retailers are choosing to ship through Hong Kong. There are serious bonuses to shipping via Hong Kong, whether you’re based in China and shipping to countries like the US, UK, and Australia, or you’re a retailer based outside of Asia who wants to ship to Asian countries. Let’s take a look at the big reasons why your eCommerce business should ship through Hong Kong.

 

1 – Hong Kong is readily accessible by air, road, and sea

Hong Kong is extremely well connected to Mainland China and is located right in the center of the Asia-Pacific region’s major shipping routes. It operates the 4th biggest container port in the world and is situated within driving distance of two of the other big players, Shenzhen (the 3rd biggest) and Guangzhou (the 8th biggest).

 

Hong Kong is also the world’s biggest air cargo hub. In fact, over 50% of the world’s population live within five hours’ flight of Hong Kong. This means that Hong Kong is a great base for storing and shipping your products to customers pretty much anywhere in the world. With storage and shipping from Hong Kong, you can confidently offer delivery as fast as overnight to customers all over the world.

 

2 – You can avoid taxes and tariffs in Hong Kong

Hong Kong has a strong free trade policy, which means that goods are not subject to customs duties when entering or leaving the territory. While the trade war between the US and China continues to grow, Hong Kong has managed to avoid new tariffs thanks to its status as an independent customs territory. Sales and exports taxes don’t apply to Hong Kong, with very few products (with some exceptions: think tobacco, liquor, etc.) coming under tax regimes.

 

On top of that, Hong Kong imports valued at less than $800 can enter the US without incurring duties and taxes. This can really benefit small- and medium-sized eCommerce retailers. The duty-free port and lack of tariffs when shipping through Hong Kong make it a highly attractive prospect for savvy eCommerce business owners. Overall, the tax system in Hong Kong is very reasonable and easy to understand, making it a useful shipping base for international businesses.

 

3 – Hong Kong has excellent shipping facilities

If you’ve looked into shipping facilities, you’ve probably realized that not every country is set up for good storage and shipping. However, this isn’t an issue in Hong Kong. In fact, Hong Kong’s port is financed, owned, and operated by the private sector, leading to a high level of design, technology, and efficiency. They offer a world-class shipping register and excellent shipping infrastructure which make shipping through Hong Kong a highly reliable and efficient option when it comes to getting your products to your customers quickly and safely.

 

4 – Hong Kong offers simple shipping procedures

As well as top-quality shipping facilities, Hong Kong also has supremely simple procedures when it comes to shipping. Many businesses are put off shipping from places like Mainland China because of the steep learning curve required to work with shipping procedures there. In comparison, Hong Kong’s business practices are more similar to the West and you won’t find yourself caught up in a lot of confusing forms or endless bureaucracy when attempting to ship your products in and out. Shipments from Mainland China to the US are often subject to strict inspections which can significantly slow down delivery times, leading to unhappy customers, but this luckily isn’t the case when shipping from Hong Kong.

 

5 – Hong Kong is an international marketing hub

Hong Kong has a large and international business community. Seventy of the world’s 100 largest banks have operations in Hong Kong and the area has a large, vibrant community of startups. This business community in Hong Kong offers an international outlook and style which make it easily accessible for eCommerce entrepreneurs from all over the world. On top of that, there is a high level of English proficiency in Hong Kong which means you won’t suffer from a language barrier when you’re trying to get business done.

 

Your eCommerce business can benefit hugely from shipping through Hong Kong. The strong geographical connections, highly international market, and low taxes make Hong Kong a sensible option from just about every standpoint, whether you’re producing your product outside Asia and shipping it to customers in Asian countries or vice versa.

 

If your business is ready to expand internationally, why not sign up for a free consultation with Floship? We work with growing businesses every day to help them pack, store, and ship their products via Hong Kong. If you’re already shipping a couple of hundred orders per month and you’re ready to go global, we are here to help. Contact us today for a free consultation!

 

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