How much money can be earned from Hong Kong's entrepot trade? Come and share your experiences!
Solved#Entrepot trade#
I've been very interested in Hong Kong's entrepot trade recently and want to know exactly how much money can be made in this business. I know it may be affected by many factors, such as the types of goods, trade scale, and market environment. Is there anyone in the industry who can share the approximate profit range? For an ordinary-scale trade, what is the general profit margin? And if it involves more special commodities, how will the profit margin change?
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The profitability of Hong Kong's entrepot trade is indeed affected by various factors. Generally speaking, for the entrepot trade of ordinary-scale and common goods, the profit margin may be between 10% - 30%. For example, for the entrepot of some regular daily necessities, due to relatively sufficient market competition, the profit margin may be at the lower limit of this range.
However, if it involves special commodities, such as some high-tech products or scarce resources, the profit margin may increase significantly and can reach 50% or even higher. This is because such commodities have high technical content or limited supply and strong market bargaining power.
The trade scale also has an impact. Although the profit margin of large-scale trade may be slightly lower, due to the large volume, the total profit amount is also quite considerable. Meanwhile, logistics costs, tariff policies, etc. will all change the profitability situation. Therefore, how much can be specifically earned needs to be considered comprehensively in many aspects.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
I've done textile entrepot trade before, and the profit was about 15%, which is not high but stable, with a guaranteed shipment volume.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The profit difference in electronic product entrepot trade is large. The profit of popular and newly-technological products can reach 40%, while that of ordinary ones is only about 20%.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If you can get good sources of goods and reduce the procurement cost, the profit will definitely be higher. For example, for clothing entrepot trade, if the cost is well controlled, it's not difficult to achieve a 25% profit.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In doing Hong Kong's entrepot trade, the relationship with customers is very important. If there are many long-term and stable customers, the profit can be maintained quite well, about 20% - 30%.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
For special commodities such as high-end jewelry entrepot trade, the profit margin is astonishing, which can be 60%, but the risk is also high.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Simplifying the trade process can also increase the profit. For example, by simplifying the customs declaration procedures, the profit may increase by several percentage points.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Being familiar with Hong Kong's trade policies can bring a lot of profits. Some products that meet the policy preferences can have their profits increased by about 10%.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Choosing the right logistics partner and reducing the logistics cost can increase the profit of ordinary goods entrepot trade by 5% - 10%.