China Fulfillment Centers: What DTC Brands Need to Know for Seamless Global Distribution

China fulfillment centers provide 3PL services tailored to brands sourcing products from Chinese suppliers and shipping worldwide. This article guides DTC founders, retail marketers, and procurement leads through workflows, pricing, KPIs, and risks, empowering confident decisions on using China fulfillment for global ecommerce success.

What Are China Fulfillment Centers and When to Use Them?

China fulfillment centers are third-party logistics hubs located in mainland China or Hong Kong that receive factory output, store inventory, perform pick and pack, custom kitting, brand packaging, or FBA prep, generate export documents, and arrange international shipping to customers or regional distribution centers.

These 3PL hubs provide essential warehousing and distribution services for brands manufacturing or sourcing in China, enabling them to ship products directly to consumers or retail channels globally without the need to first move inventory to the U.S. This reduces freight touches and inventory risk and can enable faster production-to-market velocity. Examples of specialized services include pick & pack, custom kitting, brand packaging, Amazon FBA prep, and export documentation.

When to use China fulfillment centers:

   
• You manufacture or source in China and want to ship direct-to-consumer cross-border or to third-party retailers and marketplaces worldwide.
   
• You aim to reduce handling and freight steps by avoiding full import clearance and domestic U.S. fulfillment until closer to demand.
   
• You want to stage smaller inventory batches near the factory to manage cash flow and test new SKUs or markets efficiently.
   
• You seek a gateway for distributing internationally without incurring all upfront duties and complexities in the U.S.
 

How China fulfillment centers differ from U.S.-based facilities:

   
• Proximity to factories reduces dock-to-stock time and enables faster quality control immediately after production.
   
• However, cross-border transit and customs clearance add variability to delivery times and may require specialized export documentation expertise.
   
• Shipping costs and applicable duties depend heavily on destination, service level (postal, express courier, DDP vs. DAP), and trade compliance programs unique to country.
   
• Combining China fulfillment with a U.S. 3PL like All Points allows brands to cover the full distribution lifecycle, factory-adjacent operations in China plus next-day/2-day delivery to U.S. consumers, expedited retailer replenishment, kitting, and returns handling under one integrated solution.
 

Additional resources on China fulfillment providers and services can be explored via partners like Send From China, China Fulfillment, NextSmartShip, and Ecommerce Express.

Step-by-Step Workflow for Fulfillment in China

Navigating fulfillment processes in China fulfillment centers involves complex coordination between manufacturers, warehouses, logistics, and international carriers. Here is a detailed breakdown:

1. Receive Bulk Shipments from Factory Suppliers

   
• Factories apply carton labels as per fulfillment center guidelines.
   
• Advanced Ship Notices (ASNs) accompany shipments for pre-advice.
   
• Freight arrives at the warehouse, where cartons and pallets are counted and checked against the purchase order (PO).
 

2. Quality Control and Inventory Check in China

   
• Visual acceptance quality level (AQL) inspections verify product condition and quantity.
   
• Sample batch testing may be conducted for key SKUs.
   
• Any discrepancies are documented, and the inventory is registered in the warehouse management system (WMS) by SKU, lot, or batch.
 

3. Pick & Pack or Custom Kitting as Per Order Specs

   
• Standard pick and pack fulfills direct-to-consumer (DTC) orders.
   
• FBA (Fulfillment by Amazon) preparation, including FNSKU labeling, poly-bagging, suffocation warnings, and cartonization, is performed compliant with Amazon requirements.
   
• Custom kitting or product assembly is done adhering to standard operating procedures (SOPs) and brand packaging guidelines. Branded inserts and customized packouts may also be included.
   
• U.S.-based support for more complex or stateside kitting needs is available through All Points’ custom kitting and product assembly services for brands desiring hybrid fulfillment strategies.
 

4. Generate Shipping Documents

   
• Orders arrive through integrated systems: shopping cart APIs, CSV uploads, or Electronic Data Interchange (EDI), notably the 940 warehouse shipping order and 945 warehouse shipping advice standards.
   
• Commercial invoices, packing lists, and export declarations are prepared.
   
• Harmonized System (HS) codes, country of origin information, and Incoterms (such as Delivered at Place (DAP) or Delivered Duty Paid (DDP)) are confirmed.
 

5. Coordinate International Shipping and Customs Clearance

   
• Shipping service levels are selected based on destination and cost: options include postal services, commercial express (DHL, UPS, FedEx), or freight consolidations.
   
• Duties are pre-paid by shipper for DDP shipments or billed to recipient for DAP. Importer of Record (IOR) responsibilities are managed depending on destination regulations.
   
• For U.S. deliveries, shipments often move as bulk pallets or containers to a stateside 3PL distribution center, such as the All Points Atlanta warehouse, for last-mile fulfillment.
 

6. Final Mile Delivery Globally or to U.S. Distribution Centers

   
• For international direct-to-consumer deliveries, parcels are handed over to local postal or courier networks after customs clearance.
   
• For domestic U.S. deliveries, inbound bulk shipments are cross-docked or stored temporarily at U.S. warehouses before shipment via ground or parcel carriers.
   
• All Points offers reliable ecommerce order fulfillment solutions to ensure timely delivery to end customers.
 

7. Returns Handling and Inventory Reconciliation

   
• Returns can be routed internationally to China fulfillment facilities or consolidated at U.S. warehouses, depending on logistics strategy and cost effectiveness.
   
• Return Merchandise Authorization (RMA) workflows need to be clearly established for seamless processing.
   
• Returned inventory is inspected for restocking, refurbishment, or disposal and updated live in WMS records.
 

Key SLAs and KPIs to Expect from China Fulfillment

Establishing clear performance metrics is critical for managing cross-border fulfillment success. Typical Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) guiding China fulfillment center operations include:

These KPIs underpin operational excellence and help brands maintain transparency, control costs, and improve customer satisfaction despite the complexities of international logistics.

Pricing Drivers in China Fulfillment Centers

China fulfillment pricing is influenced by multiple interrelated factors that brands must evaluate carefully:

   
• Inventory Storage Fees
  Chinese warehouse storage costs tend to be lower than U.S. counterparts but vary widely based on location (e.g., Shenzhen, Shanghai, inland hubs), seasonality, SKU velocity, and storage method (pallet vs. bin). Slow movers incur higher effective storage costs due to opportunity cost of space.    
   
• Pick & Pack Complexity
  Orders requiring multipiece picking, custom kitting, assembly, or specific labeling (such as Amazon FBA prep) increase labor time and cost. The more complexity, the greater the premium.    
   
• Packaging and Materials
  Branded packaging, inserts, boxes, and protective materials can either be sourced by the brand or procured by the fulfillment center and charged at cost plus handling fees.    
   
• International Shipping and Customs
  This category represents the largest and most variable expense. Costs depend on carrier selection (postal, express, freight), dimensional weight, destination market, Incoterms (DDP vs. DAP), and surcharges during peak seasons.    
   
• Compliance and Documentation
  Correct classification (HS Codes), hazardous material declarations, certificates of origin, and importer of record arrangements may incur one-time setup and ongoing per-shipment fees.    
   
• Technology Integration
  Connecting APIs, EDI 940/945 workflows, marketplace integrations, and access to portals or WMS interfaces often involves initial implementation expenses and monthly service charges.    
   
• Minimum Order Quantities & Contract Terms
  Fulfillment centers may require monthly minimum volumes or minimum order commitments that lower per-unit costs but increase inventory and contractual risk.    
 

Risks of Using China Fulfillment and How to Mitigate Them

While integrating China fulfillment into global supply chains offers many benefits, brands should be keenly aware of risks and deploy mitigation strategies:

Longer and Variable Lead Times

   
• Customs clearance and international freight variability can add days or weeks unpredictably.
   
• Mitigation: Build buffer stock and safety inventory based on realistic lead time calculations. Set reorder points factoring in manufacturing, export, transit, customs, and last-mile delivery time.
 

Customs Compliance Issues

   
• Misclassification, incomplete paperwork, or incorrect Incoterm declarations can cause shipments to held or penalized.
   
• Mitigation: Ensure 3PL providers have deep export expertise; pre-advise all paperwork to customs brokers; use correct Harmonized System codes and trade documentation.
 

Quality Control Variations

   
• QC standards may vary at factory and warehouse stages, risking product defects reaching customers.
   
• Mitigation: Define Acceptance Quality Level (AQL) thresholds, mandate pre-shipment inspections at factories, and perform cycle sample testing on inbound shipments.
 

Communication Barriers and Time Zones

   
• Language and time zone differences can delay problem resolution.
   
• Mitigation: Partner with bilingual teams and assign a U.S.-based account manager. All Points’ Atlanta team coordinates work scopes, SOPs, and service levels aligned across continents.
 

Inventory Visibility Gaps

   
• Poor real-time visibility can lead to stockouts or overstock as orders and returns flow through complex systems.
   
• Mitigation: Demand cloud-based inventory management with real-time WMS access, daily EDI or API order transaction updates, and regular inventory reconciliation reports.
 

Returns Friction

   
• Processing returns internationally is expensive and complicated, risking long delays and lost stock.
   
• Mitigation: Establish clear Return Merchandise Authorization (RMA) protocols, consolidate returns in regional centers such as the U.S. where possible, and process returns cost-effectively leveraging domestic fulfillment networks.

The Atlanta Advantage in Global Fulfillment

When brands leverage China fulfillment centers, coupling inbound operations with a robust U.S. domestic hub can significantly improve service levels and total landed costs. All Points is an Atlanta-based family-owned 3PL founded in 1995, serving as a strategic bridge between international supply chains and U.S. consumers.

Why Atlanta?

   
• Speed and Reach: From All Points’ Atlanta distribution center, ground shipments reach approximately 80% of the U.S. population within 2 days, accelerating last-mile delivery and reducing parcel costs.
   
• Cost Efficiency: Rather than paying international express on individual parcels, receiving bulk shipments from China into Atlanta reduces per-unit landed cost with U.S. ground shipping for final deliveries.
   
• Integrated Brand Experience: The ability to conduct custom kitting, product assembly, and print marketing collateral domestically ensures consistent brand presentation without constraints that cross-border operations may impose. All Points’ high-precision programs, such as those executed for Porsche, attest to quality and timing standards.
   
• Unified Operations: SLA alignment, standardized workflows, platform integrations, and reporting across China and U.S. fulfillment centers enable seamless inventory management from factory to customer.
 

This integrated cross-border approach harnesses strengths from both markets to optimize supply chain resilience and customer satisfaction.

What You Get with All Points

   
• End-to-End Logistics Execution
  Coordination of overseas kitting and assembly through to U.S.-based receiving, dock-to-stock, and nationwide ecommerce fulfillment.    
   
• Custom Kitting and Print
  Branded packaging, marketing inserts, and personalized packouts under one roof to ensure a premium unboxing experience. Learn more about our custom kitting and product assembly services.    
   
• Operator-Grade SLAs and Accuracy
  High pick accuracy, on-time shipments, clear KPIs, and seamless EDI 940/945 transactions underpin reliable operations. Our portal delivers real-time visibility and control.    
   
• A Partnership Mindset
  Focused on optimizing total landed cost and customer experience instead of competing solely on price, All Points aims to be an extension of your brand’s supply chain team.    
 

For comprehensive fulfillment solutions, explore All Points’ ecommerce order fulfillment solutions.

Suggested Implementation Checklist

   
• Define order lanes by business case and select which SKUs ship direct from China versus which replenish U.S. inventory.
   
• Map safety stock and reorder points for each SKU based on combined manufacturing, export, transit, and delivery lead times.
   
• Finalize SOPs detailing QC, picking, packing, FBA prep, and labeling with clear visual work instructions.
   
• Confirm international trade aspects (Incoterms, HS codes, Importer of Record arrangements) for each shipping destination.
   
• Integrate storefront or marketplace systems with fulfillment center WMS via API or EDI (940/945).
   
• Pilot with 1–2 SKUs initially, monitor SLAs and costs, and refine before scaling.
   
• Define clear return pathways and item disposition rules by market or geographic region.

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FAQ

Q1: What services do China fulfillment centers offer?
A: They provide receiving, storage, quality control, pick & pack, custom kitting, branded packaging, FBA/FBM prep, export documentation, carrier coordination (postal/express/consolidations), and returns handling. Many support EDI flows (940/945) and marketplace integrations.

Q2: How long does order fulfillment take in China?
A: Typical order cycle times are 3–7 business days including pick, pack, export, and customs handoff. Express routes can deliver door-to-door in 3–6 calendar days to major markets; economy methods cost less but may take 8–15+ days.

Q3: What are common pricing factors for China-based 3PLs?
A: Storage fees, pick & pack labor, kitting and packaging complexity, international shipping costs (dimensional weight, destination, service level), duties and taxes (DDP/DAP), compliance charges (HS codes, hazardous material handling), technology integrations, and contractual minimums dominate pricing.

Q4: How does customs affect shipping timelines?
A: Customs clearance introduces variability; complete, accurate documentation and pre-advise reduce delays. DDP shipments clear faster but shift duty costs to the shipper. Peak seasonal volume and restricted commodities can extend clearance times.

Q5: Can All Points integrate China fulfillment with U.S. distribution?
A: Yes. Brands commonly stage or prep inventory in China and then replenish All Points’ Atlanta hub for 2-day ground shipping across the U.S. SOPs, SLAs, and reporting flows are unified to ensure efficient ecommerce, subscription box, retailer, and return processing. For more, see the 3PL guide for ecommerce and Amazon sellers.

Get a kitting quote to streamline your global fulfillment today: custom kitting and product assembly services

All Points is an Atlanta-based, family-owned 3PL founded in 1995. We deliver end-to-end logistics—from custom kitting and ecommerce fulfillment to warehousing, distribution, and printing—so your brand ships accurately, on time, and at scale.

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