Amazon is making another major investment in global seller logistics.
To help sellers reduce storage costs and improve inventory planning, Amazon has expanded its Global Warehousing & Distribution (GWD) network with a new fulfillment facility in Shanghai, China, while also introducing 30 days of free storage for eligible shipments. These updates are designed to simplify cross-border logistics, improve replenishment efficiency, and help sellers prepare for peak shopping seasons.
For brands sourcing products from China, this is more than a logistics update—it's an opportunity to lower costs, maintain healthier inventory levels, and create a more flexible supply chain.
In this guide, we'll break down everything sellers need to know and explain how businesses can take advantage of Amazon's latest logistics expansion.
Amazon Global Warehousing & Distribution (GWD) is Amazon's international inventory storage and replenishment solution.
Instead of shipping all inventory directly into U.S. fulfillment centers, sellers can store products closer to their manufacturing locations in China. Amazon then automatically replenishes inventory to U.S. FBA fulfillment centers based on customer demand. (Amazon Seller Central)
This approach helps sellers:
Rather than managing multiple logistics partners, GWD centralizes warehousing, transportation, customs support, and replenishment within Amazon's ecosystem.
Amazon's latest expansion introduces several significant improvements.
Beginning July 16, 2026, sellers can now use a new GWD facility in Shanghai, one of China's largest manufacturing and export hubs.
This complements Amazon's existing Shenzhen warehouse, giving sellers another strategic location based on where their products are manufactured. (Amazon Seller Central)
Amazon is offering:
30 days of free storage
for eligible shipments received between:
July 1 – December 31, 2026
The promotion applies automatically to qualifying inventory received at participating GWD facilities, allowing sellers to test the service without paying initial storage fees. (Amazon Seller Central)
Amazon states that GWD storage rates are up to 45% lower than U.S.-based Amazon Warehousing & Distribution (AWD). (Amazon Seller Central)
Keeping inventory closer to manufacturers instead of storing it immediately in the U.S. can significantly reduce overall inventory carrying costs.
Amazon now supports the Free On Board (FOB) Incoterm across all GWD locations.
This gives sellers:
Inventory is one of the largest expenses for growing Amazon brands.
Many sellers struggle with:
Amazon's GWD expansion directly addresses these pain points by allowing inventory to remain closer to manufacturing until it's actually needed.
Instead of filling U.S. warehouses months in advance, sellers can replenish inventory based on real customer demand.
The result is:
Amazon's GWD is particularly valuable if you:
It may be less beneficial for brands with low inventory volumes or those requiring complete manual control over replenishment schedules.
Although GWD offers significant advantages, sellers should also evaluate:
Free storage does not eliminate all logistics costs. Processing, export documentation, and transportation fees still apply depending on shipment size and routing.
Amazon determines replenishment timing for sellers using automated inventory management.
Brands running major product launches or seasonal promotions may prefer manual replenishment for greater control.
GWD works best when paired with accurate forecasting.
Poor inventory planning can still lead to stockouts or excess inventory, regardless of where products are stored.
To get the most value from Amazon's latest update:
Amazon's logistics network is becoming more sophisticated every year.
Simply enrolling in new programs isn't enough—you also need the right inventory strategy.
At Adorbix, we help Amazon sellers:
Whether you're considering GWD, AWD, FBA, or a hybrid fulfillment model, our experts help you choose the solution that best fits your business goals.
Amazon's expansion of Global Warehousing & Distribution marks another step toward creating a more integrated, cost-effective supply chain for sellers sourcing products from China.
With a new Shanghai fulfillment center, 30 days of free storage, lower storage rates, and FOB shipping support, Amazon is making it easier for brands to reduce logistics costs while improving inventory availability. (Amazon Seller Central)
For sellers preparing for peak shopping seasons, now is an excellent time to evaluate whether GWD fits your fulfillment strategy. Businesses that adopt these tools early may gain a competitive advantage through lower operating costs and more efficient inventory management.
Eligible U.S. Amazon sellers sourcing products from China whose shipments arrive at participating GWD facilities between July 1 and December 31, 2026 qualify automatically. (Amazon Seller Central)
Amazon currently operates GWD facilities in Shenzhen and Shanghai, with additional expansion announced in China. (Amazon China)
No. GWD complements FBA by storing inventory closer to manufacturers and replenishing U.S. fulfillment centers based on demand.
Yes. Sellers can choose manual replenishment, although some automated replenishment-related fee benefits may not apply.
Not necessarily. GWD is most beneficial for sellers manufacturing in China, managing larger inventories, or looking to reduce U.S. storage costs while maintaining product availability.
Amazon's new Shanghai GWD facility and free storage promotion present valuable opportunities—but only if they're aligned with your business goals.
At Adorbix, we help Amazon sellers reduce costs, improve inventory performance, and scale profitably through expert Amazon account management, inventory planning, PPC optimization, listing optimization, and marketplace growth strategies.
Ready to optimize your Amazon business? Contact Adorbix today for a personalized Amazon growth strategy.
