Amazon has launched its first Global Warehousing and Distribution hub in Shenzhen, marking a major step to strengthen support for Chinese cross-border e-commerce sellers. The facility is designed to streamline logistics and reduce storage costs by up to 45 percent, as global online retail competition continues to intensify.

Located in one of China’s key manufacturing centres, the hub integrates storage, customs clearance, cross-border shipping and inventory transfers into a single system. This allows sellers to manage goods more efficiently after they leave factories and before reaching Amazon warehouses overseas.

By consolidating these processes, Amazon aims to improve supply chain efficiency and cut reliance on costly overseas storage. When paired with Amazon Global Logistics, the model can also help move inventory into US fulfilment centres up to seven days faster.

The launch comes amid rising competition from platforms such as Temu and Shein. Amazon plans to expand the model to other manufacturing hubs, including the Yangtze River Delta, with future reach into Europe and Japan.