Selling to US customers

Hi,

I'm thinking of selling gadgets online to US consumers but I'm base in Hong Kong.

Can I send my goods to a fulfillment center in the US and have them send the goods out when customer order? Does anyone know if this can be done? I'm not so sure what tax or legal implications there are.

I would appreciate it very much if some experienced member can advise.

Thanks for your time!

 

I don't do this kinda stuff anymore.
But I used to have a different business on eBay and I did just that.
Bought some goods in China and Hong Kong and sent them to some guy in the USA.
Everytime somebody bought something I'd give him the details and he sent it.
Technically It worked pretty well.
It just wasn't worth it for me profit wise.
But maybe if you get the goods really cheap and sell at a good price it can work.
There is a forum for this kinda stuff it was called thewholesaleforum I think.
This is where I found that guy.
You'll need to check about your specific goods though as I wasn't selling electronic stuff.

 

This can be done. There are many ways to set up the fulfillment process in the U.S. and each will have different legal and tax consequences. For example, if you are simply paying someone to store and then ship your products for you and are accepting and processing the orders in Hong Kong, it should be a pretty clean operation, legally and tax-wise. There could still be an issue of sales tax consequences in the state the fulfillment operation is sited in, but even that is questionable in my mind. PM me if you would like to discuss further. I may have an option for you.

 

Thanks both for your input. I'll need to weigh the pros and cons carefully since the physical products are so far away and difficult to maintain control.

 

yes

 

People from countries all over the world are selling their products in the US using Amazon's FBA. One of the problems with that is that you don't know until Amazon choose, just which warehouse they will require you to send to. Sometimes it can be in a state that charges sales tax, and other times it could be in a state that doesn't charge tax.

There are big benefits in using FBA, but you might prefer to use a different fulfillment service, choosing one in a state that doesn't charge tax. The tax issue still has to be dealt with, because you will inevitably sell some products to customers in a state that charges sales tax, and you will have to charge that tax and pay it to Inland Revenue.

There are still some hurdles to jump, such as how to pay the Customs duty, and how to find someone who will act as IOR (Importer Of Record) for you. These things can be done. You can arrange a US customs bond from your location in Hong Kong, and that overcomes the duty payment issue. In the case of small shipments, your courier, freight operator, fulfillment service, or freight forwarder will sometimes act as IOR.

I am not an expert on internet marketing, my specialty is sourcing and importing, but there are people who are experts in selling in the US using fulfillment services. I can provide answers to your questions about the shipping, customs etc, but you should look for someone to guide you on how to set up your operation in the US.

Walter Hay