A Comprehensive Guide to Becoming an Amazon Seller in Hong Kong

Hong Kong has long been recognized as a global business hub, offering entrepreneurs a favorable tax regime, strategic location, and world-class logistics infrastructure. For those looking to build an online retail business, becoming an Amazon seller in Hong Kong can open doors to international markets while leveraging the city’s unique advantages.

Why Sell on Amazon from Hong Kong?

Amazon is the world’s leading e-commerce marketplace, providing access to millions of customers globally. By registering as an Amazon seller in Hong Kong, businesses can:

• Access international markets: Amazon’s global reach allows sellers in Hong Kong to target customers in the U.S., Europe, and Asia-Pacific without the need for a physical presence in those regions.

• Benefit from Hong Kong’s tax system: With its low corporate tax rate and no sales tax or VAT, Hong Kong offers a cost-effective environment for managing online businesses.

• Leverage efficient logistics: Hong Kong’s free port status and proximity to Mainland China make it an ideal base for sourcing, warehousing, and shipping products.

Setting Up as an Amazon Seller in Hong Kong

To start selling on Amazon, Hong Kong businesses typically follow these key steps:

1. Register a Business Entity

To sell on Amazon, you need a properly registered company. Most entrepreneurs choose a Hong Kong private limited company due to its credibility, limited liability, and ease of incorporation.

2. Open a Business Bank Account

A dedicated business bank account in Hong Kong ensures smooth financial transactions, provides legitimacy, and simplifies accounting and tax compliance.

3. Create an Amazon Seller Account

Choose between Individual Seller (no monthly fee, but higher per-sale fees) or Professional Seller (monthly subscription, lower per-sale fees). Most businesses opt for Professional Seller accounts to scale efficiently.

4. Select Products and Suppliers

Many Hong Kong-based Amazon sellers source products directly from Mainland China, benefiting from lower manufacturing costs and streamlined logistics. Strong supplier relationships are crucial for quality control and timely delivery.

5. Manage Logistics and Fulfillment

Amazon offers two main fulfillment methods:

• Fulfillment by Amazon (FBA): Products are stored in Amazon warehouses, and Amazon handles packaging, shipping, and customer service.

• Fulfillment by Merchant (FBM): Sellers manage inventory and shipping directly, often leveraging Hong Kong’s logistics ecosystem.

Tax and Compliance Considerations

Although Hong Kong does not levy VAT or sales tax, Amazon sellers must be aware of tax obligations in the markets where they sell. For example, selling in the European Union or United States requires compliance with local tax laws, including VAT registration or sales tax collection.

Hong Kong companies must also fulfill their local obligations, including:

• Annual filing of Profits Tax Returns.

• Maintaining proper accounting records.

• Complying with audit requirements.
  

Challenges for Amazon Sellers in Hong Kong

While Hong Kong offers many advantages, sellers should also be prepared for:

• Intense competition on Amazon’s marketplace.

• Compliance with international product regulations.

• Currency fluctuations affecting profitability.

How Woodburn Can Support

At Woodburn Accountants & Advisors, we help entrepreneurs and companies establish and grow their businesses in Hong Kong. From company formation and bank account setup to tax compliance and international expansion strategies, our team ensures you have the foundation to succeed as a global e-commerce seller.

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Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.

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