Amazon GWD Offers 30 Days of Free Storage and Expands China Warehousing Network for US Sellers

Amazon has announced a significant update to its Global Warehousing & Distribution (GWD) program, introducing 30 days of free storage for eligible inventory sourced from China and expanding its warehousing network with a new facility in Shanghai.

These enhancements are designed to help US sellers to reduce their storage costs, simplify cross-border logistics, and prepare inventory ahead of the peak shopping season.

The limited-time promotion applies to eligible shipments received at an active GWD facility between July 1 and December 31, 2026.

Sellers don't need to enroll separately for this as the free storage benefit is applied automatically once qualifying inventory arrives at a participating GWD warehouse.

What's Changing in this Update for Sellers?

Amazon has introduced three major improvements to its Global Warehousing & Distribution program:

• 30 days of free storage for eligible China based sourced inventory receiving between July 1 and December 31, 2026
• A new Global Warehousing & Distribution facility in Shanghai, opening from July 16, 2026
• Support for the FOB (Free on Board) Incoterm across all GWD locations, giving sellers greater flexibility when managing export documentation

These updates build on Amazon's existing GWD network, allowing sellers to store inventory closer to manufacturing hubs while Amazon manages replenishment into US Fulfillment by Amazon (FBA) fulfillment centers.

Previous Process vs. New Process

• Sellers shipped most inventory directly to US warehouses vs. inventory can be stored in Amazon GWD facilities in China before replenishment
• Standard storage fees applied immediately vs. eligible shipments receive 30 days of free storage
• Shenzhen was the primary GWD location vs. Shanghai joins the network, with additional expansion planned
• Limited export flexibility vs. FOB support available across all GWD facilities

How Global Warehousing & Distribution Works for Sellers?

Global Warehousing & Distribution is designed for US Amazon sellers sourcing products from China.

Instead of sending all inventory directly to the United States, sellers can first store bulk inventory in Amazon's GWD facilities located in China.

Amazon then monitors inventory demand and automatically replenishes stock into US FBA fulfillment centers when needed.

This creates a streamlined supply chain where storage, international transportation, and FBA replenishment are managed within Amazon's logistics network.

Key Benefits for Amazon Sellers

The latest GWD enhancements provide several advantages for businesses sourcing products from China.

Key benefits include:

• Up to 45% lower storage costs compared to Amazon Warehousing & Distribution (AWD) storage in the US
• Reduced US warehouse storage requirements by keeping bulk inventory closer to manufacturers
• Faster replenishment into US FBA fulfillment centers based on customer demand
• Improved inventory planning before major shopping events and peak seasons
• Simplified logistics with Amazon managing inventory movement between China and the United States
• Greater flexibility for exporters through FOB shipping support

These improvements can help sellers balance inventory more efficiently while reducing storage expenses throughout the supply chain.

How Eligible Sellers Can Get Started?

Amazon has made the onboarding process straightforward for eligible sellers. To begin using Global Warehousing & Distribution:

• Navigate to Send to Amazon Warehousing & Distribution in Seller Central
• Select a China ship-from address
• Choose an available Global Warehousing & Distribution center
• Select the SKUs and shipment quantities
• Complete the shipment details and submit the booking

Before shipping inventory, sellers should review eligibility requirements, applicable fees, and promotion terms within Seller Central to ensure their shipments qualify for the free storage offer.

Why This Update Matters for Sellers?

Amazon continues to expand its end-to-end supply chain services, giving sellers more control over inventory while reducing the operational complexity of international fulfillment.

By allowing inventory to remain closer to manufacturing locations until it's needed, sellers can lower storage costs, reduce overstocking in the US, and improve replenishment planning throughout the year.

For businesses importing products from China, this update provides another opportunity to optimize inventory management while preparing for seasonal demand more efficiently.

Final Thoughts

Amazon's latest Global Warehousing & Distribution update goes beyond offering temporary free storage. It reflects Amazon's continued investment in building an integrated logistics network that simplifies international inventory management for sellers.

Businesses sourcing from China should evaluate whether GWD fits their current supply chain strategy, especially if they are looking to reduce US storage costs, improve inventory replenishment, and strengthen peak-season planning.