US e-commerce giant Amazon has launched its first Global Warehousing and Distribution hub in southern Shenzhen, aiming to cut storage costs for Chinese merchants by up to 45 percent as competition intensifies in global online retail, according to reports.
The facility will serve as an all-in-one logistics centre for Chinese sellers shipping goods to overseas markets, helping manage inventory after products leave factories in China and before they reach Amazon warehouses abroad. It was first announced at Amazon’s Global Selling Cross-Border Summit in Hangzhou in December 2025.
Located in Shenzhen’s manufacturing hub, the centre integrates storage, customs clearance, cross-border shipping and inventory transfers – processes sellers previously had to coordinate themselves.
By consolidating these processes, Amazon says the model could significantly lower storage costs compared with holding inventory in US warehouses, while improving supply-chain efficiency. Sellers can also pair the hub with Amazon Global Logistics to move inventory into US fulfilment centres up to seven days faster.
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The move comes as competition grows from Chinese e-commerce platforms such as Temu, owned by PDD Holdings, and fast-fashion retailer Shein, which have rapidly expanded their global reach.
Shenzhen remains central to China’s cross-border e-commerce ecosystem, hosting more than half of the country’s cross-border sellers and ranking first nationwide in cross-border trade for four consecutive years, according to official data.
Amazon said it plans to expand the warehouse model to other manufacturing regions, including the Yangtze River Delta, with distribution also targeting Europe and Japan.
