Amazon has launched its first smart warehouse in China. This marks a new step in the e-commerce giant’s logistics strategy to support cross-border sellers. According to a South China Morning Post report, the facility is located in Shenzhen and is designed to help Chinese merchants reduce storage costs by up to 45%. The move comes as competition intensifies, with platforms such as Shein, Temu, and TikTok Shop expanding their presence in global e-commerce. Amazon said the new Global Warehousing and Distribution (GWD) centre will streamline logistics processes for sellers shipping goods to customers in the US.
Amazon’s smart warehouse opens in Shenzen: What it means for Chinese sellers
The Shenzhen-based GWD centre is described as an “all-in-one” logistics hub that manages multiple stages of the supply chain after goods leave Chinese factories. This includes local storage, customs clearance, cross-border shipping, and inventory transfers before products reach Amazon warehouses in the US.Previously, sellers had to coordinate these steps independently. By consolidating these services, Amazon aims to simplify operations and lower costs. According to the company, the system will help cut storage costs by 45% compared to storing goods directly in the US warehouses. Furthermore, Amazon plans to expand its logistics model into the Yangtze River Delta and to enhance its logistics network to include Europe and Japan.The announcement was made during a period of stiff competition in cross-border online shopping. In fact, platforms like Temu and Shein were expanding their market share, with Temu rising from less than 1% to 24% over the same period, according to the International Post Corporation.Chinese companies are also investing heavily in supply chains. In February, Shein founder Xu Yangtian pledged more than 10 billion yuan (around $1.4 billion) to build a “smart supply chain system” in Guangdong province.Shenzhen remains a key hub in this ecosystem, hosting more than half of China’s cross-border e-commerce sellers and ranking first nationwide in cross-border trade for four consecutive years, according to official data.At the same time, regulatory changes in Western markets are adding pressure. The United States has removed the “de minimis” exemption for commercial shipments under $800, while the European Union plans to introduce a €3 fee on parcels valued at less than €150 from July.These developments highlight the shifting dynamics of global e-commerce, as companies adapt to both competitive and regulatory challenges.
