Amazon has launched its first Global Warehousing and Distribution (GWD) center in Shenzhen, China, aiming to support local merchants selling globally on its platform. The facility is designed to be an "all-in-one" logistics hub, handling storage, customs clearance, and cross-border shipping, potentially cutting storage costs for sellers by up to 45% compared to holding inventory in the U.S.
This initiative is a direct response to intensifying competition from fast-fashion giants Shein and PDD Holdings' Temu, which have rapidly gained market share with their efficient, low-cost supply chains based in China. By consolidating logistics at the source, Amazon aims to attract and retain Chinese sellers, who are critical to its global marketplace. The company also plans to expand this model to other manufacturing hubs in China and extend distribution to Europe and Japan.