Question 1

How does Amazon's Shenzhen warehouse impact sellers?

Accepted Answer

Amazon's Shenzhen warehouse acts as a pre-export staging point, allowing Chinese sellers to move inventory closer to Amazon's infrastructure before it leaves China. This reduces holding costs and shifts the cost floor, impacting global sellers' margins.

Question 2

What should sellers do about the Shenzhen warehouse change?

Accepted Answer

Sellers should run a competitive cost audit on their top SKUs, monitor competitors' pricing trends, and adapt their inventory strategies to maintain profitability in light of the new cost dynamics introduced by Amazon's Shenzhen facility.

Question 3

Why is the Shenzhen warehouse significant for ecommerce?

Accepted Answer

The Shenzhen warehouse is significant because it provides Chinese sellers with a structural advantage, allowing them to reduce costs and improve logistics efficiency. This impacts global sellers by changing the competitive landscape and requiring them to adapt their strategies to maintain their market position.