Amazon opens its first smart warehouse in Shenzhen to cut Chinese merchant storage costs by 45% as Temu and Shein gain ground

Amazon launched its first Global Warehousing and Distribution center in Shenzhen, an all-in-one logistics hub that handles local storage, customs clearance, cross-border shipping, and inventory transfers for Chinese sellers targeting U.S. customers, with the company saying it will cut storage costs by up to 45% compared to holding inventory in U.S. warehouses. The move comes as Chinese rivals are rapidly gaining ground, with Temu's share of the global cross-border e-commerce market surging from less than 1% to 24% last year, putting it on par with Amazon according to an International Post Corporation survey. Amazon plans to extend the model to the Yangtze River Delta and expand distribution to Europe and Japan, with the initiative coming as the U.S. scraps the de minimis exemption for shipments under $800 and the EU prepares to impose a fee on low-value parcels from non-EU countries starting in July.