Dropshipping Fulfillment Centers in China

Imagine being able deliver products directly from China’s factory straight to your customers in Europe, America, and Asia. This dream can be made a reality with the help of fulfillment centers in Hong Kong or Mainland China. They will store, pack, and ship your products directly.

This article lists the top ecommerce fulfillment centers based in Hong Kong and Mainland China – Zhenhub, Floship, Easyship and Shipwire.

What’s a Warehouse Fulfillment Centre (WFC)?

Before we get into the benefits of working alongside dropshipping companies from China,

We need to first make sure that you understand exactly what fulfillment centers do.

Fulfillment centers allow you to ship products that your customers have ordered. This will speed up shipping and delivery and save you time and effort.

Fulfillment centers can also package the products that you send to customers.

They can also re-labeled the products or label them to ensure that your customers receive exactly what they ordered. They can store your inventory so that you don’t have it.

They are available to assist with third-party logistics.

Perhaps you are familiar with the popularity and benefits of working with China dropshipping businesses and fulfillment centers.

What are the benefits it can bring to your business?

In the next section, we will be discussing this topic.

Dropshipping eCommerce – Why Chinese Fulfillment Centre?

As everyone in the industry knows, dropshipping products are 90% Chinese. If you want to make dropshipping a success, then you must start looking for suppliers.

Your products will therefore also be shipped from China.

Dropshipping companies with many sales can make it difficult for dropshippers keep track of all orders. A fulfillment center will be required to help you with any logistics issues.

Because your suppliers are also present in China, your fulfillment center will be there as well.

Many benefits can be gained from working with Chinese dropshipping suppliers or fulfillment centers.

1. You can increase your order volume by A fulfillment center is a way to speed up order processing and track your shipments.
2. To increase customer trust, you can label your products and make a custom package.
3. Manage your Returns: Dropshipping via Aliexpress or another platform will result in the item being lost forever if the customer returns it. You can store the product in your warehouse with the help of a fulfillment center so you can sell it again.
4. Stock up: Sometimes it’s necessary to buy stock during rapid product growth or special periods like Black Friday. This will prevent any problems. Dropshipping suppliers can’t guarantee that their stock will be finished. You will have orders, but no products, if this happens.

Fulfillment centers are not necessary if you are a small dropshipper. You can still work with Chinese suppliers.

Once you start to make a profit, scaling your business will become easier if fulfillment centers are used.

Also, we cover the following:

1. Cross-border ecommerce fulfillment could lead to tax issues

2. Are you able to place a lot of orders at a fulfillment center in Hong Kong or Mainland China?

3. Are you unsure if you should choose a fulfillment center in Hong Kong or Mainland China to fulfill your order?

Listing of Fulfillment Centres

• ZhenHub
• Easyship
• Floship
• EXchain
• DHL Hong Kong
• Shipwire
• V Logic
• Send from China
• Asendia
• Borderless360
• Morning Express & Logistics
• NextSmartShip
• ChinaDivision
• SF International

Interviews

• Zhenhub: How to reduce your fulfillment center costs
• Interview with Steven Suh (Founder of Floship.com).

What is a fulfillment center?

Fulfillment centers provide e-commerce merchants with storage and shipping services. Online businesses can operate without the need to store or rent warehouse space.

Sellers and ecommerce merchants can send inventory directly to the fulfillment centre, where it is then shipped to their customers.

Many fulfillment centers can integrate with ecommerce platforms or marketplaces such as Amazon. Merchants can manage their inventory and ship products much easier thanks to this integration.

These top reasons are why importers choose fulfillment centers:

1. It is possible to reach foreign markets more easily. If you have a US warehouse, it is easier to ship goods to Europe.

2. A fulfillment center can often be cheaper than renting a warehouse, or hiring workers to store your products.

3. International customers get their product in a matter of days, rather than waiting for more than a week.

In most cases, fulfillment centers use the following process:

1. Chinese suppliers or E-commerce merchants send their products to the warehouse

2. This center has a warehouse that stores the products.

3. The customer orders and places a order on the merchant’s website.

4. The fulfillment center picks and packs products

5. Every customer receives products directly from the fulfillment center

What does a Fulfillment Company do?

Online orders will most likely be fulfilled by a fulfillment company with which you have a contract.

Some e-commerce sites offer fulfillment companies, while others contract with third-party logistics providers and fulfillment services to store goods and fulfill orders.

You can therefore say that fulfillment companies have a warehouse to stock an inventory online stores, and also have staff to prepare and ship online orders for the online shops.

Fun Fact: Did you know that customers can order 2 or more products from one online store and still receive them individually on separate dates?

Because each item in an online order is handled at a different fulfillment center, or the same place as the other, it can be confusing.

What is a Fulfillment Centre?

The fulfillment center operates in a systematic manner. An online store receives an order. The order details are then sent to the fulfillment center. You have many options to notify the fulfillment center of the order.

These are the most popular practices in online commerce to inform fulfillment centers about an order:

• Email
• Telefon
• Spreadsheet (Excel or CSV file, Google Sheet, or Google Sheet)

The fulfillment center begins its fulfillment process after receiving the order information. These are the typical details that fulfillment centers receive from online stores:

• Item details including its unique SKU number.
• Details of the customer, including name, address and telephone number.

Do Fulfillment Centers Handle Inventory Management?

Yes. Yes. Fulfillment centers are actually the warehouses for online shops. It houses the inventory and management of online shops.

Many fulfillment companies are available to work with many online shops. Inventory management is crucial in fulfillment centers.

They must organize the products using proper coding and numbering so that they are easy to store, protect and locate when needed.

Fun Fact: Online stores often use the services of fulfillment centers located in different locations to ship their products from the closest zone. This allows them to cut shipping costs.

Can Fulfillment Centres Do One- and Two-Day Delivery?

Yes. Yes. Fulfillment centers can do one-day or two-day deliveries. In e-commerce, one-day delivery is sometimes called next-day delivery.

Amazon and eBay, two of the largest e-commerce sites, offer same-day shipping. However, shipping costs for one-day and two-day delivery may be more expensive than regular shipping rates.

What is an E-commerce Fulfillment Centre?

It is important that you have realized that fulfillment centers and e-commerce businesses have a direct relationship.

An e-commerce fulfillment centre is simply a place where online orders are picked up, packed, and shipped.

Recall that an e-commerce fulfillment centre is where online store inventory is stored and shipped to customers.

What is the Fulfillment Process?

The fulfillment process begins when a fulfillment company is provided with information about the order. These are the steps that will be followed to fulfill an order.

1. Finding the item.
2. Picking up the item.
3. Inspect the item and make sure it is free from any damage.
4. Packaging the item.
5. Label the item according the store’s guidelines.
6. Preparing the item for shipment to the customer.
7. Shipment from the fulfillment center

Is Fulfillment a Part of the Supply Chain?

Yes. Fulfillment is a key part of the supply chain for e-commerce. Fulfillment centers are the strongest link between you and customers.

Fulfillment centers are designed to improve the efficiency and speed of the ecommerce supply chain.

What is Order Fulfillment in Supply Chain Management and How Does It Work?

The most critical step in supply chain management is order fulfillment, especially for e-commerce.

Customers are the ones who should be involved in the supply chain. The entire supply chain is meaningless if there is no order fulfillment.

The fulfillment of orders is one of the most important steps in supply chain management. These are:

• Handling and storage of product.
• Preparation and arrangement of products.
• Shipping or delivery of the product.
• Handling returns.

What is Fulfillment Time?

It is hard to predict the fulfillment time precisely because the fulfillment process begins with the product being located and delivered to the address. Two factors are key to determining the fulfillment time.

1. Distance between the fulfillment center’s address and the customer’s.
2. The shipping medium used.

Fun Fact: Online stores often work with multiple fulfillment centers, and customers all over the globe are notified about a tentative delivery date. This is usually in weeks.

What are Fulfillment Expenses and How Do They Work?

Fulfillment involves picking up the item from storage and delivering it to the customer.

There are many costs associated with fulfillment. The following are some of the most significant expenses:

• The storage of the items.
• Maintaining inventory
• Packaging and labeling costs
• Payments to fulfillment staff, etc.

How do Fulfillment Centers make money?

Fulfillment centers often have contracts with multiple stores. Fulfillment centers charge other online shops for the service of handling inventory and delivery.

Fun fact: Many fulfillment companies offer return procedures. Fulfillment centers can process returns from customers who return products for any reason.

What is a good price for fulfillment solutions?

Fulfillment companies offer two types to online shops for managing inventory and orders.

1. Price per unit (Product).
2. Price per month. Based on the number of units that are sold per month.

It is a good idea to start with the price per unit if you are just starting out. Prices per unit can range from less than 1 cent to more than 1 cent.

You can change your contract to a monthly rate when you become a professional.

Fulfillment companies offer different rates for different services. These include:

• Receive your items at an hourly rate
• Storage fees (monthly rate).
• Pack a few items.
• Shipping costs (based on the destination and product)

Is Fulfillment Center Pricing Worth It?

It all depends on the growth of your business. The fulfillment center is essential for any online store that is growing rapidly and has high sales volumes.

Your online shop may not be making regular sales. The full price of fulfillment centers can hurt your business viability until your online store makes profits.

What is Outsourced Fulfillment?

Outsourced fulfillment simply means that you allow another company to fulfil your orders for your online store.

Outsourcing fulfillment is also known as 3PL Fulfillment in e-commerce. Shipping carriers are increasingly inclined to online fulfillment due to the changing nature of online shopping.

Does Fulfillment Include Shipping?

Yes. A fulfillment company has one of its most important obligations: to ship or deliver the products to customers.

Fulfillment services are designed to enable online shops with order delivery.

Fulfillment services focus on shipping the product to customers, while you are focused on bringing in orders.

How is shipping cost calculated?

Shipping costs depend on many factors. Shipping costs are affected by the product’s type and nature.

Shipping costs are determined by the following factors:

• Product weight
• Product volume.

Shipping costs will be lower for products that are small and light in weight.

Shipping cost can also be affected by the shipping medium used. Shipping by:

• Air
• Road
• Sea

The most expensive shipping method is by air, while those by road are the least expensive.

Sea shipping is the most cost-effective and commonly used mode of shipment. Shipping is the name of the most economical and commonly used medium for shipping.

Fun Fact: Did you know that some online stores offer free shipping? It’s not free.

Shipping costs are not included in the price.

What is the difference between a fulfillment center and a warehouse?

A fulfillment center can be thought of as a warehouse, but it is designed to fulfill online orders.

A fulfillment center, however, is very different from a traditional warehouse in many aspects.

A warehouse is usually used to ship bulk material to physical stores.

The material is further reduced into smaller packages in physical stores for sale to the consumers. The warehouse has a limited staff that can handle inventory.

The packages are sent to one destination only at a fulfillment center.

Instead, they are broken down and sent directly to customers. Fulfillment centers have more employees who are responsible for specific jobs.

What is the difference between a Fulfillment Center or a Distribution Center?

Distribution centers are responsible for distributing products to various locations. Distribution centers can be thought of as warehouses that have distribution facilities.

A fulfillment center is different from a warehouse because it is geared towards e-commerce. It handles orders for various online stores.

A single company manages a distribution center to handle its inventory and deliver to its retail outlets.

What are the advantages of having a warehouse, distribution center, and fulfillment center?

One company might have a warehouse for its large inventory, a distribution centre to feed its retail centers and a fulfillment center that manages and delivers its online orders.

A company could have one or two of these people to manage its supply chain. Depending on the company’s size and work area, it may have three or more.

Is Amazon a Fulfillment Centre?

Yes. Amazon has many fulfillment centres. Amazon fulfillment centers can be found in many parts of the globe.

Amazon is very careful about fulfilling orders. Amazon also promotes FBA ( Fulfillment by Amazon).

What is Amazon Fulfillment Center?

List of Fulfillment Centres

ZhenHub

ZhenHub has fulfillment centers in 11 countries and areas. These centers include Mainland China, Hong Kong, USA, Canada, Australia, France, and Canada. You can access one online dashboard to manage your global shipping, power fulfillment centres, and track your inventory.

You can quickly and easily compare shipping costs between different locations using an online calculator. This allows sellers to quickly compare shipping costs to different destinations.

ZhenHub allows you to have complete control over all your global shipping channels including air freight and ocean freight.

They are able to work with many well-known shipping companies like FedEx, China Post, DHL and China Post. They integrate with all major ecommerce platforms like Shopify, Woocommerce, and Amazon.

ZhenHub offers fulfillment services and shipping services.

• Storage
• Pick up and pack
• Shipping
• Co-packing
• Returns

Address: 777 Lai Chi Kok Rd, Cheung Sha Wan, Hong Kong S.A.R (China)

Easyship

Easyship was founded in Hong Kong in 2014. Easyship now has offices and warehouses in Australia, Singapore, Australia, Australia, New Zealand, Australia, and the United States. Through its interactive online portal, merchants can manage all their orders and ship from one location.

They integrate ecommerce with all major ecommerce platforms like Amazon, Alibaba, Shopify, and Shopify. They can also be used for B2C and C2C shipping.

Easyship, although it is not a shipping company, connects sellers with shipping companies like FedEx and DHL. This allows sellers to choose the most economical shipping option for orders that go to more than 100 countries.

Easyship provides the following fulfillment services:

• Storage
• Pick & Pack
• Shipping

Address: 171 Hollywood Road, 2/F, Unit 4-6, Lee Wah Mansion, Sheung Wan, Hong Kong S.A.R (China)

Floship

Floship, a fulfillment firm based in Hong Kong was also established in 2015. It offers services such as:

• Storage
• Pick & Pack
• Shipping

They also provide value-added services like Quality Control (QC), Kitting, and Marketing Inserts.

They provide services in a variety of service categories including crowdfunding fulfillment, e-commerce fulfillment, and Floship certified logistics planning.

Floship is compatible with all major e-commerce platforms like Shopify, Amazon WooCommerce and Magento. They connect sellers with top shipping companies to ship their products.

If your monthly orders exceed 300 or you have 500 crowdfunding backers, they will be able to provide their services. International sales must be at least 30% of your total sales.

Address: Unit 1102, Tower 2 Ever Gain Plaza, 88 Container Port Road, Kwai Chung, New Territories, Hong Kong S.A.R (China)

EXchain

EXchain is a fulfillment center in Hong Kong that specializes on e-commerce order fulfillment. The fulfillment center is owned by SFC Services Limited, a China-based Group. It was founded in 2007. SFC Services Limited is the owner of “Send From China”, a similar fulfillment and delivery company in China.

EXchian, which has been in operation for over 10 years, is now a top fulfillment service in Hong Kong. They ship worldwide.

They also have a warehouse system in Hong Kong, Europe and Germany. They offer same-day delivery in Hong Kong and discounts on shipping to China.

An API service is used to automatically import orders from the online system. This API service is available on all major ecommerce platforms including Amazon, Wish and Alibaba as well as Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon and eBay.

They offer both fulfillment and delivery services for clients in Hong Kong and Mainland China.

Below are details about their pricing for a shipment weighing 225g.

• HK$ 78 to Europe
• HK$ 76 to Australia
• HK$ 63 to United States

Address: Unit B, 24/F, Excelsior Building, 68-76 Sha Tsui Road, Tsuen Wan, NT, Hong Kong S.A.R (China)

DHL Hong Kong

DHL has opened a fulfillment center in Hong Kong to offer a variety of fulfillment and ecommerce delivery service to clients.

DHL offers these fulfillment services:

• Inbound freight
• Service Level Agreements
• Handling, receiving and shelving
• Inventory tracking
• Pick-and-Pack Service
• Returns handling
• Last-mile delivery services
• Inventory

They offer both domestic and international shipping. Express Shipping takes 1-2 days to deliver in the US and International Shipping takes 1-4 days to ship internationally.

Hong Kong also has a warehouse measuring 27,000 square feet. It is right next to the international terminal. There are also other offices and warehouses located throughout Mainland China. They include Harbin, Shanghai, Urumqi, Beijing and Harbin.

Address Tsing Yu Hong Kong S.A.R. (China)

Shipwire

Shipwire is a global fulfillment company that Ingram Micro owns. It has more than 154 fulfillment centers in 45 countries.

Shipwire, an e-commerce company that is a leader in Europe, has also opened offices in China and Hong Kong. Shipwire currently operates a Shenzhen fulfillment center and a warehouse measuring 125,000 square feet. Hong Kong also has a warehouse and an office.

They are associated to many well-known shipping firms, such as DHL, Hong Kong Post, and FedEx.

These services are offered by them:

• Orders are processed within an hour
• Storage
• Shipping optimization for returns
• Optimized Orders (Offers best rates for multiple factors).
• Packaging made to order
• Kitting & virtual kitting

Address 3/F, Goldlion Holdings Centre Siu Lek Yuen Shatin Hong Kong

Log

V Logic was founded in 2000 and is a global fulfillment & delivery company based in Hong Kong.

These services are offered by them:

• Electronic fulfillment and E-commerce
• warehousing/storage
• Inventory management
• Pick & Pack
• There are many value-added services available
• Distribution domestically and internationally
• International freight forwarding

Address: Room 1003-5, 10/F, Phase One, Modern Terminals, Berth One, Kwai Chung, New Territories, Hong Kong S.A.R (China)

Send From China

Send From China is a subsidiary to SFC Services, and a sister company of EXchain. It’s an international business that has operations in Hong Kong.

They also have warehouses and fulfillment centers in Shenzhen, Shanghai. They offer services to mainly Chinese products, as well as international ecommerce companies and stores that store and ship products all over the world.

Web Service APIs allow you to integrate your online shop with tracking orders, inventory management, and product information.

These services include fulfillment:

• Stocking
• Storage
• Quality control and product labeling
• Packages for scanning
• Shipping

Address: 1st Floor, Block 2, Meitai Sci-Tech Park, Guanguang Road, Guanlan, Longhua New District, Shenzhen, Guangdong, China

Asendia

Asendia was launched by La Poste and Swiss Post in 2012. They have 32 offices in North America, Europe, and Asia.

Asendia offers integrated fulfillment and distribution services throughout the US, including in Hong Kong and Australia. Three distribution centers and warehouses are located in Hong Kong and China. They offer storage space of more than 17,000 sq. feet.

Asendia considers sustainability from energy-efficient transport to investments into carbon offset projects. For example, they have contributed to a Swiss climate protection program.

Asendia offers these fulfillment services:

• Inventory management
• Warehousing
• Mail services
• Fulfillment solutions

Address: 5/F, Adp Pentagon Centre, 98 Texaco Rd, Tsuen Wan, Hong Kong S.A.R (China)

Borderless360

Borderless 360, a SaaS platform for fulfillment and shipping, is available. Cloud-based platforms enable customers to manage and monitor their inventory. They provide warehousing services throughout the United States, Canada, Australia, and UK.

They offer postal, hybrid and express solutions through their integrated courier network. Their application can be used to send invoices and documents.

Borderless360 offers these fulfillment services:

• Fulfillment solutions
• Shipping
• Warehousing

Address,Central, Western Districts, Hong Kong S.A.R. (China)

Morning Express & Logistics Limited

Morning Express & Logistics Limited was founded in Hong Kong in 1987 in order to provide courier services for business. Customers can store their items in two warehouses located in the city.

They offer special services for eCommerce merchants, such as the insertion and management of promotional materials, bundling service and return goods management.

Morning Express & Logistics Limited provides the following fulfillment services:

• Inventory management
• Real-time stock balance
• Pick up and pack
• Bundling service
• Labelling

Office Address: Flat 1-5, 1/F, Yee Kuk Industrial Centre, | 555 Yee Kuk Street, Cheung Sha Wan, Kowloon, Hong Kong S.A.R (China)

NextSmartShip

NextSmartShip is located in Shenzhen, China. NextSmartShip also has offices in Australia, America, Europe, China, and Europe. They provide shipping services to more than 200 countries.

Every client is assigned a service manager, who will answer any questions and guide you through the process. They are able to provide solutions for order fulfillment, inventory management, and eCommerce integration.

NextSmartShip offers these fulfillment services:

• Inspection of items
• Warehousing
• Pick up and pack
• Kitting and assembly
• Packaging and labeling made to order
• Inventory management
• Shipping

Office Address: Room 607, Building A, Lianchengfa Smart Industrial Park, Gushu, Baoan District, Shenzhen, Guangdong, China

China Division

China Division offers supply chain services including product procurement, warehouse order fulfillment, and logistic transport. Their Shenzhen warehouse offers free shipping for up to 30 days to customers.

China Division offers FBA services. These include FBA label generation and packaging as well as invoice-preparation. They will email you if they find that your products do not comply with the requirements.

ChinaDivision provides the following fulfillment services

• Picking and packing
• Inspection
• Shipping management
• Returns handling
• Warehousing

SF International

SF International is a Shenzhen-based logistics company and delivery firm. Its headquarters are in China. They provide a range of logistics services, including overseas fulfillment, warehouse and E-parcel.

Their service network includes Singapore and South Korea, Malaysia, Japan, and Malaysia. Thailand, Vietnam and Thailand are just a few of the many countries they serve. There are also more than 100 locations for storage in the USA, UK and Australia.

SF International offers these fulfillment services:

• Oversea fulfillment
• International heavy freight
• Warehousing
• Service packaging
• Standard and economy express

Office Address36 Kwai Tsing S.A.R. (China),

FAQ – Dropshipping Fulfillment Centers in China

What fulfillment center should we choose in Mainland China?

This is why most fulfillment centers are found in Hong Kong. Hong Kong is a part of China’s capital, but it is an open port and is exempt from import duties.

You can transport goods from the mainland to Hong Kong without paying import taxes.

Hong Kong is also a major logistic hub and can often offer lower prices than the Mainland.

My impression is that fulfillment centres in Mainland China primarily service e-commerce companies based in China, while those located in Hong Kong focus more on international clients.

Why can’t the supplier ship directly to my customers?

Manufacturers are not logistical companies. They lack the personnel and skills to efficiently store, pack, deliver, and ship products to customers around the world.

If a supplier offers these services in an unlikely circumstance, they will not compete with the listed companies on price and delivery speed.

Who pays import duties and other taxes if the products are shipped directly from China to China?

Importers have been importing foreign products for centuries and paying import taxes to export them domestically.

Cross-border electronic commerce, fulfillment centers, and cross-border eCommerce are all poised to transform the system.

I’ll tell you why:

a. The product is shipped from Hong Kong (the seller is also in the EU).

Dropshipping is also possible.

c. The transaction is completed without taxes being paid by the seller or the customer.

Sellers who send shipments from abroad that are below the threshold value to avoid import duties can be subject to this rule.

Sellers exploit loopholes in tax law. While this may be effective right now, tax authorities could take action tomorrow.

They could track all cross-border shipping and send tax bills for the last few years.

You will likely be unprofitable.

Although no one can predict the future, there are clear signs that cross-border trade is over.

But, it is not fair to expect anyone with a financial stake to accept this assessment.

Is it worth using a fulfillment centre in Hong Kong or Mainland China?

Taxes are not an issue when you ship products from abroad to your country. Dropshipping products to the EU from outside the EU is not an option.

This is true for Australia, Canada, America, and all other countries. Even China.

The US company is not responsible if taxes are paid in Australia and the EU.

To ship goods to third countries, it is possible to use a fulfillment centre in Hong Kong (Mainland China).

It will be cheaper for small businesses to use a Hong Kong-based fulfillment center than to send goods around the world to other centers.

Many businesses still consider fulfillment centers in Hong Kong and Mainland China a viable option.

Last words

We hope this article has helped you to see the possibilities of a fulfillment center, and other related questions. We welcome your feedback and suggestions about this article.

We are happy to answer any questions you may have about the topic.