A foreign manufacturer or distributor considering to start selling cosmetics online in Thailand on the B2C (e-commerce) channel, only have two options:
- Open a local unit with attached warehouse, notify 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
Generally, in the first two years of activity, the second option (license holder + fulfillment) is the simplest and cheapest and allows to test the market response to your products.
It should be borne in mind that cross-border shipments, in addition to being expensive and slow, in the case of products notified by Thai FDA such as cosmetics, are outlawed. The products can be stopped at customs and seized because it lacks the necessary permits. The parallel import of cosmetics 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 market cosmetics in Thailand without having a local unit? And what are the indicative costs?
- Notification of products in Thai FDA via a License Holder in three steps:
- Warehouse registration
- Accreditation of the manufacturer
- Product notification
- 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 up to the final customer.
Can I use a regular fulfillment service for selling cosmetics online?
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 and speed, and this sector is full of bottlenecks. 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 of licensing and fulfillment, 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.