A foreign manufacturer or distributor considering to sell Dietary Supplements online in Thailand on the B2C (e-commerce) channel, only have two options:
- Open a local unit with attached warehouse, license the products and directly manage the import and storage.
- Appoint a License Holder to import the products on your behalf and organize a fulfillment service
During the start up phase it is advisable to opt for the second plan (license holder + fulfillment); this is easier and cheaper and allows the manufacturer to implement corrective actions to boost the market.
In last years rules and market has been changing. Customers are hardly accepting to wait the delivery for several days (or weeks, in the case of shipments from USA and Europe), and give priority to local companies. Furthermore, cross-border shipments, in addition to being also more expensive, are outlawed , in case of products licensed by Thai FDA such as Dietary Supplements. The products can be stopped at customs and seized because it lacks the necessary permits. The parallel import of any licensed product (dietary supplements included) has been prohibited in Thailand since 2018, the year in which the country implemented the rules dictated by the ASEAN Cosmetic Directives (ACD).
What are the steps to sell Dietary Supplements online in Thailand without having a local unit? What is the costs of fulfillment services in Thailand?
Steps to set up an e-commerce for dietary Supplements in Thailand in full respect of rules are:
- Licensing of products in Thai FDA via a License Holder in three steps:
- Warehouse registration
- Accreditation of the manufacturer
- Product licensing
- Import of products and storage in the License Holder warehouse
- At this point the product becomes a normal consumer product and can be managed with a fulfillment service until the delivery to the end user.
Can I use a regular fulfillment service to sell dietary supplements in Thailand?
Theoretically yes, but in practice no: in Thailand, companies that offer fulfillment services have no interest in managing Thai FDA licensed products: they aim at numbers, ease of handling and speed, and this sector is full of bottlenecks especially in licensing process. You should use company A for licensing and company B for logistics.
Siam Trade Development is the only Thai company to offer an integrated service (A + B + more…) of licensing and fulfillment for Dietary Supplements, from your warehouse, wherever you are, to your client’s venue in Thailand. Smart, Isn’t it?
Contact us today for the costs, you will be amazed at how easy and cheap it is.