[Online Store Logistics & Shipping] What You Need to Know About Logistics and Shipping

[Online Store Logistics & Shipping] What You Need to Know About Logistics and Shipping

In recent years, opening an online store has become a popular choice for entrepreneurship. Online store logistics and shipping is a key issue to face when opening an online store in Hong Kong. It is generally believed that the barrier to entry for opening an online store is relatively low, making it the first choice for many first-time entrepreneurs.

Additionally, under the pandemic, buyers' consumption patterns have changed, and online shopping has become increasingly popular. This has also caused many bosses to shift to online shopping platforms. Therefore, whether it's new store owners without physical shops or experienced shop owners transitioning from physical stores, online store logistics and shipping is an essential环节. If goods cannot be delivered to customers accurately and quickly, it will greatly affect the shopping experience.

1. Local and Cross-Border Logistics Processes Are Very Different

The local logistics process is relatively simple, generally as follows:

(1) The seller completes product packaging

(2) Then chooses the post office, suitable courier, or logistics company. The store can arrange for freight pickup or directly send the goods to the logistics station

(3) Finally, the logistics provider delivers the goods to the consumer either by door-to-door delivery or self-pickup. Therefore, local logistics delivery is relatively fast, generally taking 2-4 business days.

Cross-border logistics is more complex. In addition to the local shipping process, it also includes local customs, foreign customs, foreign logistics providers, and other stakeholders. Simply put, from:

(1) The seller first completes product packaging

(2) Then chooses a suitable logistics provider

(3) Local customs prepare for export and ship to overseas

(4) Local customs import declaration preparation

(5) The local logistics provider arranges warehouse receiving and ships the goods, finally delivering to the consumer

2. Comparison of Local Logistics Shipping Services

Common online store logistics shipping patterns for Hong Kong online shopping mainly are door-to-door delivery or pickup at logistics providers' self-pickup points. Additionally, picking up at convenience stores or logistics provider smart lockers is also becoming increasingly popular.

a. Hong Kong Post

Shipping via Hong Kong Post is relatively the cheapest. Using its easy post service, postage starts from approximately $18. There are post offices in many districts, making it convenient for stores to ship. You can also personally ensure product shipping quality. However, Hong Kong Post's carrying capacity is limited, shipping is slower, and store owners must queue up to mail items themselves.

b. Large Courier Companies (e.g., SF Express)

Shipping via large courier companies costs approximately HKD $25 and above. Their shipping is faster, generally delivering goods to customers within 1-2 business days. Some companies even have same-day courier services. These courier companies have stations in many districts. Customers can choose door-to-door delivery or pick up at partner self-pickup points. Store owners can also choose to have a representative pick up items from their door or ship at different service stations.

c. Dedicated Vehicle Delivery Services (e.g., Lalamove)

Shipping via dedicated point-to-point vehicle delivery is more expensive, with van delivery starting from $50. Store owners must pre-book a driver and arrange delivery time. However, its delivery is the fastest - the driver can immediately deliver the goods to the customer upon receiving them. When shipping, depending on the service selected or additional fees, door pickup can be arranged. This delivery method starts from 10KG, making it more suitable for shipping large items, items that need to be kept fresh, or fragile items, such as furniture and ingredients.

3. Notes for International Logistics Shipping

Because the shipping methods for international logistics depend on conditions such as the product's shelf life, volume, and even the shipping season, this section will not detail various overseas logistics methods. Instead, it will mainly explain the important aspects. If the following two points are not properly handled, products may not only fail to be sent smoothly but may also be detained or fined. This is especially important to note for overseas logistics shipping.

a. Export Declaration Preparation:

Generally, small stores can be exempt from declaration when mailing packages valued under $4,000. However, when goods are exported locally, an export declaration list must be submitted. Store owners can declare directly to designated service providers or commission an agent company for electronic declaration.

b. Shipping to Consumers:

International logistics can generally be divided into shipping from Amazon warehouses or shipping by the manufacturer/store owner themselves. The former means directly sending goods to Amazon's warehouses, where store owners bear the storage fees at Amazon warehouses and the logistics fees for delivering to consumers. For the latter, store owners need to cooperate with other local warehouses, also bearing storage fees and logistics fees.