Amazon Returns to China with New Logistics Strategy to Support Exporters
Amazon Is Back in China — 7 Years After Alibaba And JD.com 'Crushed' It
Times Now NewsImage: Times Now News
Amazon is re-entering the Chinese market nearly seven years after exiting its local online marketplace. This time, the focus is on logistics, with the launch of a Global Warehousing and Distribution center in Shenzhen aimed at supporting Chinese sellers in exporting products, particularly to the United States.
- 01Amazon is shifting its strategy in China from e-commerce to logistics.
- 02The company has opened a Global Warehousing and Distribution center in Shenzhen.
- 03This center aims to reduce storage costs for Chinese sellers by up to 45%.
- 04Amazon's new role focuses on helping Chinese businesses sell globally, rather than competing with local e-commerce giants.
- 05The company plans to expand its logistics model to other manufacturing regions in China.
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Amazon is making a strategic comeback in China nearly seven years after shutting down its local online marketplace due to fierce competition from local giants like Alibaba Group and JD.com. This time, the focus is not on direct competition but on logistics support for Chinese sellers. The company has launched its first Global Warehousing and Distribution (GWD) center in Shenzhen, a major manufacturing hub, to facilitate exports, particularly to the United States. The new center aims to cut storage costs for local sellers by up to 45%, providing services such as storage, customs clearance, and shipping. This shift in strategy is a response to the growing competition from platforms like Temu and Shein, which are rapidly expanding in global markets. Amazon plans to extend this warehousing model to other significant manufacturing areas in China, including the Yangtze River Delta, and aims to enhance its distribution network to Europe and Japan. By pivoting to logistics, Amazon seeks to remain relevant in the Chinese market despite its earlier struggles.
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This strategy could significantly benefit Chinese sellers by reducing their export costs and improving their access to global markets.
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