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Dropshipping to Hong Kong: Is it worth it? A Helpful Guide

Blog, eCommerce Insights | July 25, 2021

Hong Kong is known the world over for not only its impressive skyline but also its love of luxury shopping. So it’s hardly surprising that many eCommerce entrepreneurs are wondering if it’s worth dropshipping to Hong Kong. Crucially, is it profitable?

 

Can this glamorous city steeped in culture and history give dropshippers that elusive 6 figure income?

 

In this article, we will find out for sure! Discovering if indeed Hong Kong should be next on your dropshipping marketing hit list!

 

Is it worth dropshipping to Hong Kong? Hong Kong is a profitable marketplace for dropshippers due to Hong Kong’s high internet and phone usage, fast shipping routes, simple tax system, and open market economy. Hong Kong also offers the 4th largest port, meaning speedy shipping to dropshipping consumers is possible

 

Ok so now with the real answer discovered, let’s start our research by exploring the commercial landscape of Hong Kong and why you should drop ship to Hong Kong.

Why should I dropship to Hong Kong?

With its super-fast shipping routes, Hong Kong is a dropshippers’ dream.

 

Free business environment

Hong Kong has one of the most open business markets in the world due to:

  • Open markets
  • Rule of law

 

This along with growing internet access and smartphone usage can give those looking to expand their dropshipping venture to Hong Kong, an edge over competitors.

Benefits of Dropshipping in Hong Kong

There are a wealth of benefits to operating a dropshipping, Shopify, or any other kind of eCommerce store in Hong Kong.

 

Not only is it located close to China where many products are manufactured, but its great tax system and the fact it operates easily in different currencies make Hong Kong a great country for expanding your dropshipping empire!

 

Some other important benefits are:

 

  • Dropshipping market growth: From 2017 onwards, dropshipping markets in Asia like Hong Kong, Mainland China, Malaysia, and Taiwan have skyrocketed.
  • High internet usage: Some surveys indicate that consumers spend over 7 hours a day online, plus another 2 hours using social media. This would most definitely contribute to the popularity of dropshipping.
  • Fans of social shopping: Social shipping is important to Hong Kong consumers. They are social shoppers who rely on social media recommendations for their purchases.
  • Fourth largest port: Hong Kong boasts It’s the 4th biggest container port in the world it’s situated within driving distance of the two main cities for shipping, Shenzhen which is the 3rd biggest and Guangzhou who are the 8th largest
  • The world’s biggest air cargo hub Hong Kong is also well known as the world’s biggest air cargo hub. This means more than 50% of the world’s population are only within a five-hour flight from Hong Kong. This makes Hong Kong not just a great base for storing goods and shipping them to customers all around the world, but also a great target for dropshipping.

 

“From 2017 onwards, dropshipping markets in Asia like Hong Kong,

Mainland China, Malaysia, and Taiwan have skyrocketed.”

Internet and smartphone penetration in Hong Kong

According to the World Bank statistics, 91.7% of a growing population have access to the internet.

 

Another study by Statista.com discovered that almost 80 percent of the population uses smartphones and has one of the highest smartphone penetration rates in Asia.

 

The only other competitor being other developed countries in the region like South Korea and Singapore.

 

By these figures, it’s pretty clear to see that Hong Kong is among the most connected cities.

 

This makes for a seamless shopping experience for its consumers.

 

“Almost 80 percent of the population use smartphones

and has one of the highest smartphone penetration rates in Asia.”

Many suppliers are based in China

If you start your dropshipping company in Hong Kong or scaling it, you will be pleased to learn that a lot of dropshipping suppliers are located in Mainland China.

 

So by operating your business from a Hong Kong dropshipping business means you are much closer to the commercial hub and be seen as a better option for dropshipping by consumers.

 

There are also no transaction fees or any other fees that you might have to pay for international money transfers.

 

So now we can see that Hong Kong should be on your next dropshipping marketing plan, you might be wondering what kind of winning products are being bought by Hong Kong’s internet-savvy population.

 

Read on to find out more.

Popular niches

  • Women and men’s fashion
  • Creative and novel products
  • Home and kitchen
  • Outdoor

As with most countries where drop shipping is popular, women’s and men’s fashion are high on consumers’ shopping lists.

 

Along with creative and unique products which could be handcrafted or simply unusual.

 

Products from the home and kitchen world are also popular with projections expected to show an annual growth rate of 12.03%. Which is likely to indicate a market volume of US$651m by 2025.

 

Popular outdoor activities such as Hiking, wakeboarding wake surfing, kayaking, rock climbing, camping, sailing, and surfing, ensure related products are likely to sell well for dropshippers.

 

“As with most countries where drop shipping is popular,

 women’s and men’s fashion are high on consumers’ shopping list.”

Payments

Globally trusted payment gateways, such as PayPal and 2Checkout, are available in Hong Kong, which is why you can safely receive and manage your dropshipping profits.

 

Credit cards are also popular. As in many countries across the globe, Hong Kong businesses also accept the most popular worldwide options for credit cards including:

 

  • Visa
  • MasterCard
  • American Express
  • UnionPay

Shipping

Hong Kong’s economy is one of the most trade-oriented economies in the world. Hong Kong is well known globally for its shipping and logistics services.

 

This is one of the vital reasons why Hong Kong is great for dropshipping. Super fast shipping

Slow shipping can be a disaster for those trying to start or scale a dropshipping business.

 

With the likes of Amazon and others offering almost on-the-day delivery, consumers are expecting faster deliveries more and more.

 

With a direct link to China, Hong Kong shipping is super fast, usually less than 5 days.

 

So with all the impressive reasons to put your map pin on Hong Kong for your dropshipping expansion plans, are there any barriers?

 

“With a direct link to China, Hong Kong shipping

is super fast, usually less than 5 days.”

 

Let’s discover more.

Barriers of dropshipping to Hong Kong

  • Language barrier: As with any dropshipping business in a different country, there may potentially be a language barrier. However, by ensuring you offer a website in both traditional Chinese and English, you will reach Hong Kong consumers.
  • Different shopping cultures: It’s worth also making sure you understand the culture of any region, including Hong Kong if you are wondering if it’s worth dropshipping there. Make sure you research this fully and have a good handle on Hong Kong culture so you can maximize dropshipping profits. High-net consumers in Hong Kong tend to pay for edgy and high-tech products, or what we called identity and conspicuous consumption.

Popular eCommerce platforms

  • Tmall: Tmall was launched by Alibaba in 2008 as a spin-off of Taobao for sellers of more premium products. Since then, Tmall has significantly grown and is currently the biggest eCommerce website after Taobao.
  • Taobao: Taobao is the biggest eCommerce website in China and was founded in 1999. The platform is owned by Alibaba and widely used among buyers all over China.
  • Zalora: Zalora is an e-commerce platform and website that provides fashion and footwear products. It provides users with clothing and footwear from fashion labels such as Mango, Nike, Puma, Casio, Calvin Klein, Levi’s, and many more well-known brands
  • Shopify: Shopify allows beginners (and pros) to create online stores without coding. No software installations or hosting services are required. Making it a perfect platform for dropshippers

And finally…

So we hope that you have all your answers as to whether it’s worth dropshipping in Hong Kong.

 

If you are searching for the best reliable dropshipping suppliers, then look no further! Discover how you can start or scale your dropshipping enterprise in Hong Kong – today!