This means you can set up dropshipping in Hong Kong and sell to an international customer base without worrying about the extra costs. In specific, profits arising or derived from any other source outside of Hong Kong are exempted from taxation. Hong Kong’s tax system ensures a level playing field for both local and international entities operating within its borders. And since the majority of goods on the market are manufactured in China, you can enjoy super fast shipping, usually within 5 days. Right off the bat Hong Kong presents an ideal geographical advantage being in close proximity to China and is a renowned trading hub in the international community.Īdditionally, a good amount of suppliers are situated in China which makes setting up your dropshipping business much more viable. This comes in the form of having an established rule of law, a free economy, and a well-built IT infrastructure. Hong Kong boasts several incentives for companies looking to set up business in their jurisdiction. According to the World Bank, 91,7% of the population is equipped with smartphones and access to the Internet which equates to an immense prospect pool. Being surrounded by a complex of shops and kiosks coupled with 24/7 access to ATMs has definitely shaped the way Hong Kongers live life.Ī s such, this obviously translated to an easier time for businesses making the jump to digital. Hong Kong was already a city sprawled with shopping malls before the eCommerce boom. This can be attributed to its wide-ranging post offices across the country along with other macro factors. Parcel deliveries are fast in Hong Kong, especially in major commercial and industrial areas. Today, the model has mostly been extrapolated upon, with eCommerce giants like Amazon offering “same-day delivery” and bespoke merchant solutions. It wasn’t long before other mail-order companies would start to leverage these warehouses as well to sell marked-up products without holding any inventory. This sparked the idea of establishing “fulfillment centers” aka warehouses closest to the customers’ vicinity in order to simplify logistics. It got to the point where demands were overtaking the rate at which these companies would actually be able to ship out products. Every median household at the time would tune in to these catalogs for their weekly shopping. The concept itself actually originated in the ’70s when companies would advertise their products in mail-order catalogs. Sounds simple enough, but the model we have today has a rich history of origin. Once an order has been placed, the store will contact the supplier to buy the said product and have it shipped to the end customers. What is dropshipping?ĭropshipping in a nutshell is when you sell customers’ products through your own established website but don’t actually have them in stock. Now that we’ve piqued your interest in the matter, let’s dive into what exactly makes Hong Kong a prime destination for dropshipping. So should you make the move? Dropshipping in Hong Kong is not hard to get into but it’s also not exactly a cakewalk either. As such, setting up a dropshipping eCommerce business here becomes a very promising endeavor in the eyes of entrepreneurs. It’s safe to say that Hong Kong might be the first few economies that are contributing to a new advent of digital consumerism.ĭigital payments and telecommunications are also vastly better compared to most neighboring countries. Hong Kong is shaping up to be the next capital state for eCommerce with a population of hyper-consumers constantly on the prowl for the next big sale.Īccording to Global Data 2022, Hong Kong’s eCommerce sector is currently valued at around HK$ 226 trillion and is estimated to reach a compound annual growth rate (CAGR) of 10.2%.
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