Incorporating an e-commerce company – Part 1/2

Incorporating an e-commerce company

For years, e-commerce has grown significantly colossal and popular at the same time in a global scale. Various entrepreneurs and companies are venturing into the e-commerce world since its boom. Due to its reputation as an international hub for global companies and businesses, Hong Kong is easily one of the best, if not, the finest jurisdiction for incorporating an e-commerce company due to its offshore nature and lenient regulations.

There are several types of e-commerce businesses that you can create and capitalize on depending on your personal preferences. To mention some, here are your possible choices:

D2C – Director to Consumer

This method is designed to eliminate the middleman structure in a business model. This form of business was made to directly sell the products to customers through an e-commerce website. Normally, D2C businesses are the manufacturers or producers of products themselves.

White Label & Private Label

The White Label business model hinges on a strategy of branding and putting their label on a generic product that was purchased directly from a manufacturer or a distributor. Meantime, for private labeling, the retailer would simply negotiate and create an agreement with the manufacturer so that they can produce a unique product for them to sell exclusively. Either way, both method works perfectly on capital investments since there is a possibility of building your own marketing strategy and approach at the same time.

Wholesaling

Wholesale is simply offering products in bulk with discounts. Mostly appealing to budget conscious customers. By using an online platform, e-commerce based wholesalers will purchase their products from suppliers and manufacturers at a wholesale price. These goods are then sold in their online platforms with a markup price that will generate a viable ROI. This business models are typically suitable in Hong Kong since most of the cheapest producers of goods and products around the world are found in the APAC region, and HK is the door to Asia.

Dropshipping

This method is one of the most popular and growing e-commerce business around the world. Dropshipping is typically a business model wherein the retailer/seller directly sells and markets their product on their online platform that is fulfilled by third party shipping providers.

Subscription Service

Convenience and savings is the main method of this e-commerce business model. By creating an avenue for customers to subscribe to a product or service for a prescribed period of time, usually on a monthly trial period by using their credit cards. After the free trial is done, customers are either charged automatically for an another one (1) month supply or has a choice to renew.

Comparatively, if you already have an existing e-commerce business overseas or you still plan to enter the e-commerce market then Hong Kong is definitely the best option for you so you can tap on the Asian market and explore possibilities for collaboration with manufacturers and producers in China and other parts of Asia. Simply start by incorporating your business, acquiring the necessary business licenses and begin the process of acquiring a Hong Kong bank account for your business to thrive on.

Our thoughts

On top of our incorporation, bank account opening and accounting services, we also have a dedicated team of Tech Experts that can boost your knowledge on CPM, CPC, CTR, monetization, digital marketing and affiliate marketing. Usually, e-commerce businesses are met with various problematic privacy law issues, VAT thresholds, offshore partners, traffic fraud, mirroring businesses just to name a few. By using our expertise in the digital economy, we can navigate the market for you in order for your business to connect with the big players and game changers in the e-commerce market worldwide, and to prevent any issues that may arise and challenge your business.

To get to the next step, proceed to Incorporating an e-commerce company in Hong Kong – Part 2 (next week)