Amazon sets up warehouse in eastern China for faster overseas e-commerce, signalling confidence in consumer spending
- The e-commerce giant is setting up a bonded warehouse in Ningbo, which it estimates will cut shipping times by four to five days
- Amazon closed its China store in 2019, but it maintained operations for cross-border e-commerce, which has exploded in popularity
The warehouse, to be regulated by local customs, will allow overseas merchants to ship their goods to Ningbo, where they can be stored in advance. The new facility is expected to cut delivery times for Amazon shoppers by four to five days, the company said in a statement.
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In the future, the warehouse will also be able to service goods from Amazon’s US and Japan sites, with expanded product categories to include pet food, the company added.
Amazon did not reveal the cost of the warehouse.
With the new move, Amazon is looking to “merge the advantages of bonded online shopping and cross-border e-commerce … to optimise the experience of overseas shopping”, Li Yanchuan, head of Amazon China Global Store and Prime, said in a statement.
Amazon’s announcement comes after an explosion in cross-border e-commerce, lifted in part by the pandemic, which kept many shoppers at home.
In China, cross-border e-commerce grew tenfold in the past five years, according to customs data. Imports and exports together grew 18.6 per cent last year to 1.92 trillion yuan (US$267 billion), of which imports accounted for 27.6 per cent.
China’s retail e-commerce of foreign goods reached 117 billion yuan in the second quarter this year, down 10 per cent compared with the same period last year, but 19 per cent higher than the first quarter despite a weak macro environment, according to data from Analysys.
At the same time, the company has grown the number of Chinese merchants selling through its global platform to reach foreign customers. The number of such merchants who registered on the Amazon Brand Registry increased 40-fold in the last four years, according to company data.
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Despite the seemingly tougher stance on Chinese sellers, Amazon has sought to further boost cross-border e-commerce.