How to Sell on Amazon from Hong Kong

How to Sell on Amazon from Hong Kong | Bestar

Selling on Amazon from Hong Kong

How to Sell on Amazon from Hong Kong

Selling on Amazon from Hong Kong is a viable option due to the city's strategic location, favorable tax policies, and simple company formation procedures. Here is a comprehensive guide to help you get started:

1. Business and Legal Requirements

• Registration: You need to register on Amazon Seller Central.

  
  

• Business Entity: You can register as an individual seller or a company. Many sellers from Hong Kong choose to incorporate a private limited liability company to benefit from low tax rates (16.5% corporate tax) and ease of doing business.

  
  

• Required Documents:

  
  

  • Valid ID (passport or Hong Kong ID card) for the business owner. Must be a color copy and not a screenshot.

  • Valid credit card for international payments (Visa or MasterCard) with a sufficient spending limit. Virtual cards are not accepted.

  • Bank account information to receive payments.

  • Business registration documents, such as the Business Registration Ordinance and Certificate of Incorporation (if applicable).

  • Proof of address, such as a utility bill, bank statement, or credit card statement issued within the last 180 days.

    
    

2. Choosing a Seller Plan

Amazon offers two main seller plans:

• Individual Seller Plan: Suitable for those who plan to sell fewer than 40 items per month. There is no monthly fee, but you will be charged a $0.99 fee for each item sold.

  
  

• Professional Seller Plan: Ideal for sellers who expect to sell more than 40 items per month. It costs $39.99 per month, plus additional fees per product.

  
  

3. Sourcing and Listing Your Products

• Product Research: Conduct thorough product research to identify profitable opportunities. Look at best-sellers, new releases, and use tools to analyze sales volume and competitor pricing.

  
  

• Product Identifiers: To list your products on Amazon, you need a unique product identifier, known as a GTIN (Global Trade Item Number) or GS1 barcode. Amazon verifies the authenticity of GTINs by checking the GS1 database. It's recommended to obtain these directly from GS1 Hong Kong.

  
  

• Creating a Listing: Your product listing should be complete and accurate, including a compelling title, high-quality pictures, a detailed description, and a competitive price. Optimize your description with relevant keywords to improve search rankings.

4. Fulfillment and Shipping

You have two primary options for fulfilling customer orders:

• Fulfillment by Amazon (FBA): This is a popular option, especially for international sellers. You send your inventory to an Amazon fulfillment center, and Amazon handles the storage, packaging, shipping, customer service, and returns. This can save you time and energy, and can also make your products eligible for Prime shipping.

  
  

• Self-Delivery (Fulfillment by Merchant): You are responsible for all aspects of storage, packaging, and shipping to the customer. This can be more cost-effective for some sellers, but requires you to manage all logistics and customer service.

  
  

5. International Shipping from Hong Kong

If you opt for FBA, you'll need to ship your products to an Amazon fulfillment center in your target marketplace (e.g., the U.S., Europe). Here's what you need to know:

• Freight Forwarders: Working with a freight forwarder that specializes in Amazon FBA is highly recommended. They can help you with door-to-door delivery, customs clearance, and ensuring your products meet Amazon's strict labeling and packaging requirements.

  
  

• Shipping Methods:

  
  

  • Air Freight: Faster (5-10 days) but more expensive. Ideal for smaller, high-value shipments or urgent restocks.

  • Sea Freight: More cost-effective for large, bulk orders, but has a longer transit time (25-45 days).

  • Express Courier: The fastest option (3-7 days), suitable for small, urgent shipments.

    
    

• Customs and Duties: You need to navigate customs clearance at both the origin (Hong Kong) and destination. Many freight forwarders offer Delivered Duty Paid (DDP) services, which means all customs duties and taxes are included in the shipping cost, preventing unexpected fees.

  
  

• Required Documents: You will need a commercial invoice, packing list, and bill of lading (for sea freight) or an airway bill (for air freight). You also need to have an Importer of Record (IOR) for the destination country.

Bestar Professional Fees

Bestar's fees vary depending on the services required, but they generally fall into two categories: one-time setup costs and recurring annual fees. The total cost to set up a new company in Hong Kong with Bestar can range from approximately HK$8,500 to over HK$30,000.

1. One-Time Setup Costs (Initial Incorporation)

These fees are incurred when you first register your company and include both government fees and Bestar's service charges.

• Government Fees:

  
  

  • Company Registration Fee: This is the fee to incorporate the company with the Companies Registry. It is HK$1,720 for a hard copy submission or HK$1,545 for an electronic submission.

  • Business Registration Fee: This is a separate, mandatory fee paid to the Inland Revenue Department for a Business Registration Certificate. For a one-year certificate, the fee is approximately HK$2,200.

    
    

• Bestar's Service Charges: Bestar offers packages that bundle the government fees with our own services, such as:

  
  

  • Preparation of all required incorporation documents.

  • Acting as the company secretary for the first year (a legal requirement in Hong Kong).

  • Providing a registered office address in Hong Kong (also legally required).

  • The cost for these packages can range from HK$6,980 to HK$13,220, depending on the services included.

2. Recurring Annual Fees

After the initial setup, you will have ongoing annual costs to maintain the company's compliance.

• Government Fees:

  
  

  • Annual Return Filing Fee: All companies must file an annual return, which costs HK$105 if filed on time.

  • Business Registration Certificate Renewal: This fee must be paid annually. The cost is approximately HK$2,200 for a one-year renewal.

    
    

• Bestar's Service Fees: Bestar provides services to help you stay compliant. The fees for these services depend on the complexity and scale of your business.

  
  

  • Company Secretary and Registered Address: A package for these two services costs around HK$2,500 per year.

  • Accounting and Bookkeeping: Fees are based on the volume of your transactions. For a small business with a low volume (up to 30 transactions per month), monthly fees can range from HK$1,000 to HK$2,500.

  • Statutory Audit: All Hong Kong limited companies are required to be audited annually. Audit fees vary widely based on your business's revenue and complexity. For a small trading company, audit fees can start from HK$6,000 to HK$7,000 per year.

How Bestar Hong Kong can Help

Bestar Hong Kong is a professional services firm that specializes in assisting businesses with corporate and financial matters. For an individual or company in Hong Kong looking to start selling on Amazon, Bestar can provide invaluable support, primarily in the areas of company formation, legal compliance, and financial management.

Here's how Bestar Hong Kong can help you sell on Amazon:

1. Company Formation and Registration

• Handling the Incorporation Process: Setting up a private limited company in Hong Kong can be complex, especially for those new to the process. Bestar's core service is to manage the entire company registration process on your behalf, including:

  
  

  • Name Search: Checking the availability and uniqueness of your chosen company name.

  • Document Preparation: Drafting and filing all required documents, such as the Articles of Association and incorporation forms, with the Hong Kong Companies Registry.

  • Submission and Follow-up: Submitting your application and handling all communication with the government authorities to ensure a smooth and efficient process.

    
    

• Faster and More Efficient Setup: Using a professional service like Bestar can significantly speed up the incorporation process. Their expertise and established procedures can often get your company registered in a fraction of the time it would take to do it on your own.

  
  

• Ensuring Compliance: Bestar helps you meet all the mandatory requirements for a Hong Kong company, which is crucial for Amazon Seller Central registration. This includes:

  
  

  • Appointing a Company Secretary: All limited companies in Hong Kong are legally required to have a company secretary who is a Hong Kong resident or a local corporate entity. Bestar can act as your company secretary, handling all the statutory duties.

  • Registered Office Address: A physical registered office address in Hong Kong is mandatory for all companies. Bestar can provide this as part of a package, ensuring you have a valid address for all official government correspondence.

2. Ongoing Corporate and Financial Services

• Bookkeeping and Accounting: As an Amazon seller, you'll need to maintain accurate financial records for tax purposes. Bestar provides ongoing accounting and bookkeeping services, which can be particularly helpful for managing sales, expenses, and international transactions.

  
  

• Tax and Audit Services: While Hong Kong has a low corporate tax rate, you still have tax and compliance obligations. Bestar can help with:

  
  

  • Tax Advisory: Providing advice on Hong Kong's tax laws and helping you with tax filings to ensure you remain compliant.

  • Statutory Audit: Assisting with the mandatory annual statutory audit for limited companies, a process that must be conducted by a certified public accountant.

    
    

• Due Diligence and Other Services: Bestar offers a range of other services that can be beneficial for a growing e-commerce business, including financial advisory, payroll outsourcing, and human resources consulting.

3. Simplified Amazon Registration

• Verified Documentation: By using Bestar's services, you will have all the necessary, professionally prepared documentation required by Amazon. This ensures your business registration and identity documents are in order, reducing the risk of a rejected application during the seller verification process. Amazon is very strict about documentation, so having everything prepared by a professional firm can be a huge advantage.

In summary, Bestar Hong Kong can act as a one-stop-shop for a new Amazon seller by handling the complex legal and administrative tasks of company formation and management. This allows you to focus on the core aspects of your business, such as sourcing products, creating listings, and marketing, while ensuring you meet all of Hong Kong's corporate compliance requirements.

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