Amazon opens smart warehouse in China

Although the customs loopholes have been closed, Chinese online shopping providers such as Temu and Shein remain a major challenge for the US giant Amazon. Instead of relying on duty-free direct shipping to buyers, the Chinese providers are now holding goods in US warehouses and delivering from there. Previously, for example, Temu had largely stopped direct shipments from China to the USA in response to the changed customs regulations. Amazon is now countering with a “smart warehouse” in China, which is intended to enable manufacturers easier and cheaper access to the US market. Streamlined processes and other advantages are intended to make Amazon's logistics platform more attractive for Chinese retailers than the Chinese competition.

Amazon's Global Warehousing and Distribution (GWD) Center has been established in Shenzhen, in close proximity to a large number of factories and e-commerce retailers that ship cross-border. This is reported by the South China Morning Post. The US provider handles the entire supply chain from the factory to the US warehouse, including local storage, customs clearance, cross-border shipping, and inventory transfers. Previously, retailers often had to coordinate these steps themselves.

Up to 45 percent lower storage costs

By bundling the Chinese warehouse and its US warehouses, Amazon promises its customers up to 45 percent lower storage costs compared to purely US-based warehousing. Larger quantities of goods can thus remain in China initially before being transferred to warehouses in the USA.

Amazon advertises that retailers can deliver their goods from Shenzhen to US fulfillment centers up to seven days faster – but only in combination with Amazon Global Logistics (AGL). Retailers can choose between AI-driven automation and manual control for the flow of goods. The smart warehouse is also characterized by the linking of all relevant systems. Customs documentation is generated automatically, thus avoiding time-consuming errors in processing.

Amazon is also looking at Europe

A few months ago, the USA abolished the “de minimis” exemption for shipments under 800 US dollars to end the customs exemption for cheap imports, which allowed goods from China to be sent to the USA duty-free. In Europe, too, the end of duty-free status for small shipments is being discussed to create fair competitive conditions: From July 2026, the EU will introduce a fee of three euros on packages from third countries whose value is less than 150 euros. Previously, these could be imported duty-free. Nevertheless, Chinese e-commerce platforms like Temu can still expand their market share in cross-border trade. According to a survey by the International Post Corporation, Temu increased its market share from less than 1 percent to 24 percent in 2025, thus matching Amazon.

According to the report, Amazon plans to expand its new activities first to the Yangtze River Delta region in China and then has Europe and Japan in its sights.

(mki)