How to Start Forwarding Business in the US and Singapore? A Comprehensive Guide

Want to Start a Forwarding Company in the U.S. and Singapore? Here's Everything You Need to Know!

In recent years, with the rapid development of cross-border e-commerce, more and more people have begun to pay attention to the overseas shopping and logistics industry. In particular, setting up a forwarding company in international business centers like the U.S. and Singapore seems to have become the dream of many entrepreneurs. However, successfully operating such a business is no easy task. It requires not only a deep understanding of the market but also familiarity with local laws and operational processes. This article will provide you with a detailed interpretation of how to start a forwarding business in the U.S. and Singapore from aspects such as market analysis, legal compliance, and practical operations.

I. Market Potential Demand Growth Driven by Cross-Border E-Commerce

The United States, as one of the largest consumer markets in the world, has a population of over 300 million and an enormous and continuously expanding e-commerce market. According to Statista, the U.S. e-commerce sales are expected to reach approximately $900 billion by 2025, with the proportion of cross-border shopping increasing year by year. Meanwhile, Singapore, with its advantageous geographical location and highly developed infrastructure, has become a trade hub in Southeast Asia. Especially after the pandemic, the demand for imported goods has significantly increased, providing vast development opportunities for forwarding services.

Both countries have high internet penetration rates and credit card usage frequencies, laying a solid foundation for online payment and delivery services. Whether from the perspective of market size or consumer habits, choosing to establish a forwarding company in the U.S. or Singapore is a highly promising choice.

II. Legal Framework Key Steps to Ensure Business Legality

Before entering a country, it is essential to understand and comply with local laws and regulations. For forwarding companies, the following areas are primarily involved

1. United States Federal Aviation Administration Authorization Act FAAAA and State Regulations

In the U.S., any company involved in cargo transportation must adhere to the Federal Aviation Administration Authorization Act FAAAA. This act requires all companies engaged in cargo transportation to obtain permission from the Federal Aviation Administration FAA and meet relevant safety standards. Additionally, states may have additional requirements, such as registering for sales tax licenses. When conducting forwarding business in the U.S., be sure to consult a professional lawyer to ensure full compliance.

2. Singapore Customs Regulation and GST Policy

Singapore’s forwarding business is subject to strict regulation by the Singapore Customs Authority ACRA. All goods transported through Singapore must be declared and pass through customs inspections. Starting from 2025, Singapore implemented a new Goods and Services Tax GST policy, imposing a 7% tax on imported goods valued at over 60 SGD. This means that forwarding companies need to properly calculate related fees when handling orders and clearly explain them to customers.

III. Operational Strategy Building an Efficient Service System

Apart from legal considerations, building an efficient operational model is also a key factor determining the success or failure of a forwarding company. The following suggestions might provide some inspiration

1. Technical Support Utilizing Advanced Logistics Management Systems

Modern forwarding companies cannot do without strong technical support. By introducing ERP systems or warehouse management systems WMS, inventory management and order tracking can be automated, thereby improving work efficiency and reducing human errors. Developing user-friendly e-commerce platforms can also attract more customers.

2. Partnerships Establishing a Stable Supply Chain Network

Whether sourcing goods from suppliers or finding reliable carriers, establishing a stable and reliable supply chain network is crucial. Especially in cross-regional collaborations, choosing experienced and reputable partners can effectively reduce risks.

3. Customer Experience Paying Attention to Details to Win Reputation

Lastly, but equally importantly, always prioritize customer satisfaction. From the speed of customer service responses to the time it takes for packages to arrive, every detail needs careful refinement. Regularly collecting feedback and optimizing services accordingly will enable your company to stand out in the fiercely competitive market.

IV. Conclusion

To sum up, if you want to open a forwarding company in the U.S. or Singapore, first conduct thorough market research and clarify your positioning; secondly, strictly abide by local laws and regulations to avoid unnecessary troubles due to negligence; finally, continuously improve internal management and external cooperation mechanisms while striving to enhance overall service levels. With determination and perseverance, you will undoubtedly achieve excellent results in this field!