Amazon has introduced new updates to Global Warehousing & Distribution (GWD), making it easier and more affordable for eligible U.S. sellers sourcing products from China to manage inventory. The latest enhancements include 30 days of free storage, a new fulfillment center in Shanghai, and expanded logistics capabilities designed to reduce costs and simplify cross-border fulfillment.

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What's New?

Amazon's updated GWD program now offers:

• 30 days of free storage for eligible shipments received between July 1 and December 31, 2026.
• A new Shanghai fulfillment center, complementing the existing Shenzhen facility.
• FOB (Free On Board) Incoterm support, giving sellers greater flexibility over export documentation and shipping costs.
• Demand-based inventory replenishment from China directly into Amazon FBA fulfillment centers in the U.S.

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How Global Warehousing & Distribution Works

Instead of shipping all inventory directly to the United States, sellers can now store products closer to their manufacturers in China using Amazon GWD.

When inventory levels begin to decrease, Amazon automatically replenishes stock to U.S. Fulfillment by Amazon (FBA) warehouses based on customer demand. This helps businesses:

• Reduce storage expenses in the U.S.
• Improve inventory planning.
• Minimize stockouts during peak selling seasons.
• Simplify international logistics through Amazon's integrated network.

Key Benefits for Amazon Sellers

The latest GWD enhancements offer several advantages for businesses selling internationally:

• Lower storage costs by keeping inventory closer to manufacturing hubs.
• Faster and more efficient inventory replenishment.
• Improved cash flow through reduced warehousing expenses.
• Easier cross-border shipping and customs management.
• Flexible inventory management with automated or manual replenishment options.

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Things to Consider

While the free storage promotion provides significant savings, sellers should be aware of a few limitations:

• Processing, export, and transportation fees still apply.
• The promotion is available only for eligible U.S. sellers sourcing from China.
• Automatic replenishment offers additional fee advantages, while manual replenishment provides greater inventory control.

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Why This Matters

As global eCommerce becomes increasingly competitive, efficient inventory management is essential. Amazon's expanded Global Warehousing & Distribution program enables sellers to lower costs, improve operational efficiency, and maintain healthier inventory levels without relying solely on U.S.-based storage.

For businesses preparing for peak shopping seasons, these enhancements can lead to better inventory availability and improved customer satisfaction.

At Adorbix, we help brands navigate Amazon's evolving ecosystem with data-driven strategies, marketplace optimization, and operational insights. Staying informed about programs like Amazon GWD enables sellers to reduce costs, improve logistics, and scale their businesses more efficiently.

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