When it comes to third-party logistics, location can make a world of difference.
Choose a 3PL warehouse with hard-to-reach locations—and you’ll experience more supply chain disruptions, exorbitant fees, and unpredictable delivery times.
But if you partner with a 3PL provider located in key cities, you’ll experience seamless international distribution and eCommerce logistics solutions. And all that means you have a far more optimized supply chain.
And there’s no location better than Hong Kong.
With its strategic geographical position and dynamic business environment, Hong Kong is not only a gateway to China but also a thriving hub for international trade.
In this article, we’ll delve into the top 5 benefits of having a 3PL in Hong Kong for your eCommerce business.
#1 – Proximity to the Factories in China
While China is the manufacturing hub of the world, exporting goods from it can be difficult. Aside from language and cultural barriers, shipping directly from China can amount to high overhead costs and a lack of quality assurance.
However, a reliable 3PL company in Hong Kong can act as a strategic intermediary to prevent all this. They can help you effectively communicate with your Chinese supplier. At the same time, they can perform quality checks on your goods before distributing them.
More importantly, they can store your goods in a Hong Kong warehouse and ship them directly to your customers. So, you can save on expensive warehousing costs in other parts of the world.
#2 – Advantages as the Shipping Hub of Asia
Hong Kong is connected to over 470 countries via air, sea, and land. This means that eCommerce brands with a Hong Kong warehouse have greater access to international markets. And not only that, but because Hong Kong has a long-standing reputation across the globe, the city has little barrier to entry when shipping to other countries.
In contrast, products and goods imported from China have to go through rigorous customs processes and legalities before entering other countries.
#3 – Exemption from Taxes and Tariffs
Another benefit is that Hong Kong has a duty-free port that doesn’t impose taxes and tariffs on products and goods. The only exceptions are alcohol, tobacco, hydrocarbon oil, and methyl alcohol. In return, this can save you thousands of dollars and allow you to offer more affordable shipping fees to your customers.
#4 – Expertise in Global Supply Chain Management
What makes Hong Kong strategic for your supply chain is its global orientation and geographic location in Asia. Plus, Hong Kong 3PL has the latest technology, know-how, and manpower to securely and safely handle any type of good. This includes dangerous goods like lithium batteries or luxury consumer products like jewelry.
In fact, 95% of the goods imported to and exported from Hong Kong via air are antiques and artworks.
#5 – Strong Support from the Government
Beyond signing free trade regulations, the government of Hong Kong is actively working to strengthen its position in global trading. This ranges from funding innovative technology that advances supply chain management to supporting policies that improve trade relations.
Hong Kong provides many advantages for eCommerce businesses that want to expand globally. But to maximize these benefits, you’ll still need an experienced 3PL provider. Then, you can effectively manage the complexities of an international supply chain and get the best value for your business.
Looking for a reliable 3PL company to work with?
At San Legend, we help eCommerce businesses scale their brands and break into new markets by providing customized, agile, and forward-thinking third-party logistics solutions. Reach out today to see how we can help.