Amazon Seller News: Amazon Launching Global Distribution in Shenzhen
At the beginning of April, Amazon announced the opening of their new global warehouse and distribution center in Shenzhen China. This allows sellers to store larger quantities of their products for cheaper and keeps storage close to manufacturers. In this blog, we walk through what this could mean for sellers, and how this interacts with potential Fulfillment By Amazon (FBA) enforcement actions.
New Global Distribution Center in Shenzhen
The Shenzhen Global Warehouse and Distribution (GWD) center in China was announced in April 2026, giving sellers another tool for keeping up with modern e-commerce. One of the major things that Amazon is marketing about the Shenzhen GWD is its proximity to manufacturers, which means that products can be stored closer to where they are made for much cheaper.
The Shenzhen GWD may also be helpful to non-global sellers based in the United States. Amazon has automated systems which allows sellers to configure replenishment schedules for their products in US warehouses. This means that you can store the majority of your products more cheaply in Shenzhen, while keeping your primary inventory in the US for quick access. For sellers worried about the potential of long shipping times, Amazon markets their Global Logistics program as a fast method for getting your products into the United States.
Amazon Reimbursement Services – FBA Lost Inventory
By putting more of your inventory in Amazon’s hands, the potential for Fulfillment By Amazon (FBA) to lose your inventory increases. This is why it is important to always keenly monitor your inventory but also why sellers should be aware of options for reimbursement when FBA loses your inventory.
The first option is to work through the relevant reimbursement form on your seller central page. Depending on where the item was lost/damaged, there are different forms that ask you to provide documentation of what the product was, and how it was damaged.
For sellers who have had expensive inventory or large quantities lost, disputes with Amazon often require escalation to a process called arbitration. Arbitration is a private legal proceeding that plays out like a normal courtroom, but with an independent arbitrator making the final decision.
Arbitration is an important avenue for sellers in dispute with Amazon as it moves cases from their enforcement team to their legal team. This puts the pressure on to resolve issues as soon as possible, helping you get the best result possible.
Contact Amazon Sellers Lawyer Today!
If you are facing issues on Amazon like lost inventory, withheld funds, or other enforcement actions, contact the team at Amazon Sellers Lawyer today. With over a decade of experience helping sellers, our team is ready to help you resolve any issues outstanding with our seller account. Contact us today through our online form or give us a call at 212-256-1109.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.