On November 10th, Amazon declared its first forward bonded warehouse in Ningbo, China, the cross-border e-commerce comprehensive pilot zone. It is expected to connect with multiple Amazon overseas operations centers, accelerating the logistics for tens of millions of overseas products. With an anticipated 10-day reduction in delivery time compared to traditional overseas direct mail, there is even the potential for successful delivery within 2 days, thereby enhancing the shopping experience for Chinese consumers on Amazon.
A cross-border e-commerce forward bonded warehouse is a logistics center strategically located in China, streamlining operations such as sorting, unpacking, packaging, and managing goods. This shift from performing these processes in overseas warehouses to Chinese facilities is designed to assist businesses in cutting costs and increasing operational efficiency.
Jin Yu, the deputy director of the commerce bureau of Ningbo, highlighted, "The Gross Merchandise Volume (GMV) of Chinese cross-border e-commerce import and export reached 170 billion yuan ($23.9 billion) in the last three quarters of 2023, reflecting a 9% increase compared to 2022. Anticipating continued growth, the GMV will surpass 230 billion yuan ($32.1 billion) by the end of this year." This underscores Ningbo's significant role in Chinese cross-border e-commerce and its contribution to consumption upgrades.
As a globally recognized Fortune 500 company, Amazon has a mature business model and extensive operational experience. The set up of Ningbo forward bonded warehouse during this Black Friday period indicates the capability of Amazon's supply chain and its diverse product categories that cater to the preferences of Chinese consumers. This collaboration is set to enhance the overall consumer experience on the Amazon Global Store, facilitating Chinese customers to purchase international products with excellent value for money.
The opening of the bonded warehouse reflects Amazon's confidence in the recovery of China's market amidst economic uncertainties. By strategically managing product stocks in advance and pre-existing potential risks, Amazon signals its belief in the purchasing power of Chinese consumers. Additionally, Amazon provides logistics services to merchants, reducing their costs and leading to more competitive product prices in the vast Chinese market.
Reports indicate that the 2023 Amazon Black Friday commenced on November 17th and will run until the 26th. According to NBD.com, a Chinese economic media outlet, the discount sessions customized for Chinese consumers have increased by an impressive 300% compared to the previous year.