Best China Sourcing company
That Drives Profit Growth
A Complete List of Sales Through Bonded Warehouses in China
Chapter 1: China Bonded Warehouse Basics
What is a China bonded warehouse?
China warehouses are present all around. Remember, all of them are not of a single type. Some will be smart storehouses, while others are consolidated warehouses. Even in some cases, you might come across bonded warehouses.
What is a bonded warehouse in China, then?
Good question. A bonded warehouse is a special type of China shipping warehouse. Shipping companies and individuals store the products in them. By that means, importing and exporting products are first stocked in these China warehouses. The stock is not liable to customs duties unless you remove it.
However, there are two types of bonded warehouses counting on the type of stocks.
In wet China warehouses, the products are the liquids such as alcoholic products.
All inventory other than the liquid products is part of bonded warehouses.
How do China bonded warehouses work?
You might wonder how exactly bonded warehouses work. Simply put, they work like the other China warehouses.
Have you stored in China warehouses ever before? If yes, you might know the following steps.
· Collecting inventory
The first and foremost step is what? Receiving of inventory, right?
But from where? From your suppliers. The China warehouses staff is active in this aspect.
The team might collect the stock from your suppliers.
· Storage for a specific period
Every storehouse enables storage for longer periods. If you have a specific idea in mind, you can let the team know. However, store your inventory for an indefinite period.
Security, quality control, and safety of products are the priority.
· Picking of merchandise
There are two types of picking of merchandise. First, primary picking. And what that is:
Primary picking refers to the export of the whole inventory. For example, if you ship the inventory to your location in foreign countries like the US or Europe. A good option for foreign brands.
The second choice is secondary picking. This option applies to those who are sellers. For example, FBM(fulfillment by merchant) sellers on Amazon. They have to use the fulfillment center China. Usually, products shipping occurs in batches.
· Packing of Items
Packing refers to making products ready for transport. After packing, your inventory is ready for dispatch.
· Sending to specific locations
Once you have specified the location, the next step is to ship. That’s what happens at the last step.
What is the purpose of a China bonded warehouse?
Before understanding the purpose, do you know what a warehouse does? Whether yes or not, keep an eye on the following points highlighting the purpose of a Shanghai bonded warehouse.
Whatever the type of China warehouse is, the ultimate goal is— inventory storage. Simply put, they are storehouses for all types of inventory ready to transport around China or Western countries.
· For quick shipping
Unloading to shipping, all facilities are out there for you in China warehouses.
· Running eCommerce businesses
Several eCommerce sellers use the Amazon warehouse China. Bonded warehouses are just like Amazon warehouses in China in the true sense.
· Protection of inventory
Once you have ordered your suppliers, where will keep your items once they are ready? Maybe warehouses. You know, why? Because the team is responsible for any case of damage or security. Just great to be on the safe side.
Chapter 2: What are the different types of bonded warehouses in China?
China warehouses exist in several forms. Even if I narrow down my research to bonded warehouses in China, no surprises. They also have five types.
And where these five types of Guangzhou warehouses are? Have a look at them below!
Temporary Storage Areas
Focus on the word “Temporary.” It defines all you need to know about temporary storage areas.
Before storing inventory in China warehouses, you must have to follow the rules and regulations. Once your inventory has arrived, it can’t directly be stored. You know, why? Because the Guangzhou warehouse team has to make sure the inventory does not include any restricted items. So, temporary storage areas come into action at this step.
For the short term, these areas store the inventory. If your inventory is safe to store, the team moves it from temporary storage areas to the Guangzhou warehouse.
Public Bonded Warehouses
Public bonded warehouses are quite different from private ones. In simple words, they are exactly the opposite of the private China warehouses.
No doubt the function is the same but controlling entities matter. For example, public bonded warehouses are owned by the local government or state of the city or province. China’s government governs the public Amazon warehouses in China.
So, who can store products?
Anyone in China can store inventory. But, one factor is important. The space must be available for storage in the warehouse.
Private bonded warehouses
Exactly opposite of public China warehouses. The owners of private China warehouses are companies operating all the systems. There are two types of private bonded warehouses.
· Type 1
The owner allows the external clients to store their inventory for an indefinite period. By that means, anyone can store the inventory in Type 1 private China shipping warehouse.
· Type 2
In type 2, the scenario is a bit different. Here, only the owner stores the inventory. No external client can store merchandise.
In free warehouses, anyone can get storage services. They are under the control of customs officials and available for anyone.
Bonded logistics parks
They are not just like ordinary China warehouses. More like the fulfillment center in China. They are ready for the transport of inventory to specific locations whenever required.
These are Special Economic Zones.
Chapter 3 Why should you choose the China bonded warehouse?
There are several types of China warehouses. But, why only bonded warehouses in China?
Here is a complete analysis!
Your merchandise is secure
Who wants to get damages to inventory? The ultimate purpose of China warehouses is to store the inventory. Not just simple storage, but also provide real-time reports. Here is what you expect from the Shenzhen warehouse.
- Is your inventory stored?
- All your items are safe and secure.
- Isn’t there any damage to the products?
- How stocks are left behind?
Shenzhen warehouse has a strict surveillance system. Whenever a stock is ready for export, you can get alerts. Moreover, the process becomes more reliable when you get real-time reports. No need to worry about your inventory when it is in the Shenzhen warehouse.
You can store inventory for longer periods
What is your goal for depot? To store inventory, right? But, how long? You might have some specific ideas regarding this. Some people don’t know when they should remove their inventory from the depository. You know, why? Because most of them are eCommerce who are just removing their inventory in batches.
For them, bonded warehouses in China are an excellent opportunity. No restrictions at all. You can store the inventory for indefinite. Some storehouses might allow only five years. It is better to know the upper limit for the duration of storage. However, 5 years is not a less period to stock items.
That’s why inventory storage for suppliers or brands has become straightforward. No tension about the period. Just place the stocks.
Quality control preserves the original quality of products
Quality is a crucial factor. Even I would say to be next level factor. So, keep an eye on it.
You might ask, why?
Quality ensures the following points.
- Items are user friendly and easy to use
- They will last longer
- There will be less likely damage
Only these? No. There are numerous other advantages of quality as well. So, quality control is an important factor in the Guangzhou shein warehouse.
Most warehouses in China offer excellent quality control. Whenever the stocks arrive at the door, close inspection makes sure everything is fine. You might get information about the inventory. In this way, building a relationship with the right supplier comes to be effective.
What will be the direct outcome of it?
No doubt, only success. All bigger brands are on the top only due to— QUALITY.
Easy to fulfill orders directly from bonded warehouses
Are you an eCommerce seller? Precisely, you run a drop shipping business, right? If yes, Guangzhou shein warehouse always helps you.
You can directly import the products in the warehouse and store them. Once you receive an order, link your fulfillment channel with the warehouses.
What will happen, then?
The team will use China warehouse shipping services. Your product will be at the client’s doorstep. That’s what makes a Guangzhou warehouse— A perfect Fulfilment center China.
Most eCommerce sellers on Amazon have this type of selling. They are FBM sellers and fulfill their orders directly through the storehouses.
Don’t you think it is a great idea?
There are less likely to pay taxes for merchandise
Bonded warehouses in China are under the control of customs officials. They regularly monitor everything. People have a common misconception that they don’t have to pay customs. That’s not true at all. Customs duties apply to all the products, but the scene is a bit different.
You don’t have to pay any penny until your products are in a Shenzhen warehouse. Whenever you remove them, customs duties apply. So, you have to pay them.
What is the benefit of it, then?
A lot of benefits in the true sense. For example, you can keep your inventory for longer periods without paying customs. Does not it mean a lot to you?
Cost-effective option from every aspect
When you are in business, you need to think creatively. Every business intellect has goals in mind. You have to prepare a layout of all your futures.
In all those, what is important? Budget and Quality of work, right? That’s why all your steps must be cost-effective. When you need to store the inventory, you have to keep a balance between the cost and expenses. This approach maximizes the profit margins.
So, China warehouse Shenzhen is an excellent choice in this aspect. You know, why? Because they offer you a cheaper solution. You get the following benefits.
- Lower cost
- Safety assurance
- Quality Control
- Longer periods of storage
A perfect balance between the cost and expenses is out there. Go ahead and grab it!
Chapter 4 What are the fees for selling via the Bonded warehouse in China?
Fees for selling via bonded warehouse matters a lot. Everyone wants to be in profits in business. It is only possible if you keep a balance between the total expenses and selling prices. Not only cost from suppliers is significant, but also the cost of storage applies. Here is a quick go-through to understand the total fees.
Remember, there are two aspects always. Either you need to export inventory in badges. Sometimes, you have to export as a whole. The later process costs you less. That’s why people prefer bulk shipment. Whenever they order the inventory from suppliers, they prefer bulk shipment.
So, what is the cost for bulk shipment? It depends on the following factors.
- Mode of shipment
- Weight of your inventory
- Volume of inventory
Usually, express freight is expensive. So, if you choose the sea freight. The cost will be:
- For one FCL container, the cost will be around $3500-$3900.
- In air freight, the price will be $5-$7 per kilogram of weight
So, you can choose the sea freight for bulk shipment.
The cost for storage depends on the following factors.
- Weight of the item
- Dimensions of article
- Duration for storage
Let’s suppose, the weight is 1kg. Volume is 4m³.
Roughly the cost will be as:
One item will charge you $1.82 for six months.
For 1000 items, you need to pay $1820 for six months.
Similarly, you can calculate the cost for your items accordingly.
One valuable point here. It depends on the Shenzhen warehouse. So, the price may fluctuate a little bit.
Picking and packing up
Picking and packing will cost you separately. You know, why? Because the human workforce is required to find the inventory and collect it. Moreover, there is a need for labels on the items to make sure it reaches the address with the exact tracking ID.
So, the picking and packing cost is not that much. It is about $0.90 per item. The price will be $900 for 1000 items.
Last Mile delivery
Last-mile delivery charges apply when you don’t have bulk items to ship. You need to import inventory in batches. Especially when you run an eCommerce store on Amazon, last-mile delivery becomes essential.
So, what precisely a last-mile delivery is?
It refers to picking the item and shipping it to the desired address. So, last-mile delivery might charge $1 per item. For 1000 items, the cost will be $1000.
So, we can calculate the overall expense during all this.
The total cost will include your expenses from bulk shipment to last-mile delivery. Let’s suppose, you invest in sea freight. The price is $3500. For 1000 items, the total cost will add and make $7220.
It is still cost-effective. When it comes to exporting and selling through another process, the total cost will exceed $10,000. So, you can be in a decent profit.
Chapter 5 How can I find a bonded warehouse in China?
There are several options to go. It is no longer a problem because of the availability of technology. Have a look at each choice to understand better.
Ask China sourcing companies
China sourcing companies offer services for finding suppliers. Since you need both suppliers and depot. Do companies offer that?
Yes. They help you find the depots in China. All around China, there are thousands of depots. Even if I narrow it down to a Shenzhen warehouse, you need to choose the right one. Is it tough to get, right? No problem. Sourcing companies are always in contact with the suppliers.
They get the best solution for your business. You can go through each China warehouse in Shenzhen and prefer the best one.
If you need these services, hit us a call.
Google is a vast source for everything. When you need something, Google it now.
I have heard people talking about a new skill “Googling.” That’s crazy. But Google helps you a lot.
Whenever you need a Guangzhou warehouse, just type in the Google search box. You will get all the nearby locations. Amazingly, Google will recommend you as well. The best practice is to go through all the websites. Talk to the team and choose the best Guangzhou warehouse.
You can check whether they offer the fulfilment center China services or not. If they give, just great! That’s how exactly you can find the right fulfilment center China.
Find on Social Media pages
How often do you use social media? I believe everyone uses social media a lot. Chatting with friends and knowing what is happening around us makes us aware. In actuality, social media is not only a source of chatting but also of businesses.
Simply put, you can find whatever you need. Need to locate the company. Input in the search box and uncover all the companies around your location. Even you can apply filters to make the search more specific.
When I apply this benefit to China warehouses, superb! You can find the warehouse pages on Facebook. Moreover, read their posts and inbox them to know more about them.
Open your Linked In
I know fewer people use Linked In. But, it is a great source. Not exactly a social media like Facebook or Instagram. Instead, you can regard it as a community of professionals. Here the research process becomes straightforward.
Since you need to find top-notch China warehouse shipping, just search it. Turn on the notification for it as well. Linked In will make you aware of all the China warehouse shipping services.
Ask Family and Friends
It is the best way to go. You know, why? Because Google or social media might deceive you, but friends never. Someone who already has used such services will give the best idea.
If anyone in your family or friends has hired China warehouse shipping services, you can contact them. Let them know your concerns. They will give you the best idea regarding this.
Tip: Choose the option that ensures you the best possible results.
Chapter 6 What are the most popular bonded warehouses in China?
Is finding the bonded warehouse in China hard for you? Maybe yes, if you are a beginner. Why worry, then? I have listed top companies offering bonded warehouses services in China.
Have a look!
MOL Logistics is one of the best options to go for your business. When you need warehouses services or China warehouse shipping, MOL logistics is ready to support you. No matter where you live in the world, they are available 24/7 to assist you.
In 1960, MOL logistics started working around the globe. It has offices in top countries, such as Europe, the USA, Africa, and the Middle East. This company opened its first office in Shanghai in 2004. It started exporting from China to Western countries.
- China warehouse shipping services
- Logistics services
- Sea and Air freight services
In simple words, it has all that you need. Here are some outstanding benefits.
- 17 years of experience working in China
- Multiple services to enable storing to shipping
- Easy to use services
- Excellent customer support is available 24/7 for your assistance.
Just China It
Just China It is another best option. You might ask, why? No worries, I’ll make everything clear for you.
Working since 2010, Just China It provides solutions to all your problem. It has its partners all around the globe. No matter where you live, let us know your concerns. Our team is ready to help you.
Just China It offers services regarding shipping, warehouses, and sourcing. A unique approach and transparent working mechanism are crucial to success. Here is why you should consider us.
- 11 years of experience. We have dealt with thousands of traders, suppliers, and factories.
- A wide variety of services. From shipping to sourcing services, you get all that you need.
- We have served clients from 156 countries. Isn’t it sufficient for you?
- An endless list of manufacturers and suppliers makes us a favorite for business entities.
KLG ITM is not a name of a single company. Instead, it is a joint venture between InterMax and Dutch Kuikjen Logistics. That’s why the name indicates both of these services.
In 2013, it started working around the globe. Apart from China, you can find services in European countries as well. Workers include the Chinese and Dutch nationals.
You can expect shipping, warehouse, and freight services. Apart from that, you can access quality control as well.
However, here are the main plus points of this company.
- Eight years of experience in dealing with suppliers and manufacturers
- Unloading to repackaging items is all that you can get.
- Quality control services for better protection of your inventory
- Working around the world to help you find them whenever you need them.
KorChina is a logistics company working worldwide. It was launched in 1994 and had an international presence. Primary offices include Thailand, China, the USA, the Philippines, and many more countries.
If I solely mention its presence in China, nothing is away from you. In major China regions such as Beijing, Shanghai, Qingdao, it is working actively. So, you can hire their services for the business.
And what do their services include? Here are some points.
- Freight management
You hire any of these services and rise with a positive solution for your business. Still, we have some plus points left about KorChina. Here are these.
- 27 years of experience. This experience makes them a reliable warehouse services provider.
- 41 overseas branches. You can access them in Europe and USA.
- Excellent customer service. Quickly responds to your messages.
Chapter 7 Frequently Asked Questions
Where are bonded warehouses located?
Bonded warehouses are nothing more than the formal warehouses designed for storing inventory.
Then, what is unique about them?
Nothing great, they are located near the ports and ready to receive the inventory and export it to other locations. They are better in terms of saving bucks, and time. In the case of China, you can find these China warehouses all around. For example, if you have suppliers in Shenzhen, they will transport inventory to China warehouse Shenzhen.
A similar case applies to the Guangzhou warehouse as well.
Can anyone own the bonded warehouses in China?
Yes, anyone can own a bonded warehouse in China. Remember, it is not that easy as you might expect. You know, why? Because you have to submit legal documents and follow all the rules.
A good practice is to get registered by the local government. Let’s take the example of Shenzhen. Out there, you need to get approval from the government for the Shenzhen warehouse. So, heavy paperwork is essential to open bonded warehouses in China.
How is quality control in the bonded warehouses in China?
Excellent quality control is out there. The team has to follow the quality criteria for inspecting the inventory. Whenever new stocks come, the team goes through the following steps.
- Unloading of the inventory
- Check the type of inventory, whether it is ready to store or not.
- Is there any damage to any stocks?
- Quick go through of characteristics of items
- Safe storage until it is ready for shipping
That’s how exactly bonded warehouses in China work for secure storage. One great thing about them is a liability for any damage to your inventory.
Is it safe to use the China bonded warehouse?
The simple answer is yes. Bonded warehouses in China have a strict security system. Surveillance cameras are working 24/7. You can get real-time information on how many stocks have left.
This way can keep you aware of the number of stocks available. If you need to order more products, be in touch with the suppliers. Even you can enjoy the China warehouse shipping to fulfill your orders directly from your Guangzhou shein warehouse.
Have I to pay customs taxes in a bonded warehouse?
The answer is not that simple. No doubt you have to pay the customs duties, but it is only liable when you have to remove the inventory.
Once your merchandise is in the Guangzhou shein warehouse, you don’t have to pay any penny for customs duties. When it comes to the dispatch of inventory, that’s when you need to pay for the customs duties. In simple words, you are not free from the customs duties in bonded warehouses in China.
How long can I store my inventory in bonded warehouses in China?
There are no constraints on the period of storage.
You can store your inventory for an indefinite period. Some storehouses might have an upper limit of 5 years for storage. One thing is to keep in mind. You need to pay for it when you catalog your merchandise.
Duration, inventory size, and relevant factors contribute to the total cost of the storehouse. So, make sure you know all that is necessary about bonded warehouses in China.
What is the difference between FTZ and bonded warehouse?
FTZ refers to free trade zone warehouses. They are different from bonded warehouses in several aspects. Have a quick go-through here.
- Bonded warehouses are under the control of customs officials, while it is not the case with FTZ depots.
- Storage of dutiable goods is possible with bonded warehouses in China. In the case of FTZ warehouses, you can store all dutiable and local inventory.
- Bonded warehouses don’t allow manufacturing process while FTZ warehouses do.
- FTZ warehouses don’t have any limits for storage. Bonded warehouses might allow up to 5 years for storage.
Cleared the concepts of both warehouses? Just great!
Do bonded warehouses act as fulfilment center China?
Yes, you might have observed many bonded warehouses in China. Most of them allow shipping to the given locations. It is a grand opportunity for eCommerce sellers looking for BangGood warehouse China or Amazon warehouses in China. So, bonded warehouses act as fulfilment center China.