Amazon has begun preparations for its new warehouse logistics hub in China’s Zhejiang province to improve the delivery speeds of international goods. The Company is allocating its resources to create the bonded warehouse for Amazon’s UK and German platforms.
The announcement comes from last weekend’s China International Import Expo in Shanghai. The move to build the warehouse logistics hub can be seen as controversial as the International Monetary Fund has stated the world economy was heading for “stormy waters.” Global growth is also expected to slow to 2.7% next year and is showing signs of “the weakest growth profile since 2001, according to the IMF.
What does this mean for Amazon eCommerce stores?
Li Yanchuan, head of Amazon China Global Stores and Prime, stated the Company seeks to “merge the benefits of online shopping and cross-border eCommerce…to optimize the overseas shopping experience.” Amazon China’s cross-border eCommerce generated 16.5 billion dollars in the second fiscal quarter alone.
Despite Amazon shutting down its Chinese marketplace in 2019, it has reallocated its effort to foreign overseas goods. The Amazon Global Store has grown the number of Chinese merchants to reach foreign customers by 40-fold in the last four years.
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