In anticipation of the upcoming "10th Amazon Prime Day" event in this July, Amazon has enhanced its logistics services by launching the "2024 Amazon Export Cross-Border Logistics Accelerator Program". This initiative aims to improve localized services to better meet the cross-border logistics and warehousing needs of Chinese sellers, thereby attracting more sellers to operate on its platform.

The program includes a series of innovative measures in logistics, focusing on four main areas: cross-border logistics products, supply chain management, destination warehousing, and local team building, to further support sellers in the cross-border logistics field:

• Cross-border logistics services and products: Offering more intelligent and diverse cross-border logistics services and products.
• Supply chain management: Simplifying cross-border logistics supply chain management to improve logistics efficiency.
• Global innovation and local initiatives: Introducing innovative measures to help sellers save on logistics costs.
• Local team building: Strengthening local team building to empower sellers at every stage.

According to the Ministry of Commerce, China's total cross-border e-commerce import and export volume reached 2.38 trillion yuan in 2023, up 15.6% year-on-year, with exports accounting for 1.83 trillion yuan, up 19.6% year-on-year.

In the first quarter of this year, Amazon's sales grew by 13% to $143.3 billion. Despite its leading position, the company faces competition from emerging platforms, with Amazon's app downloads falling by 22% year-on-year in 2023.

In response to these challenges, Amazon has taken protective measures. In December 2023, Amazon opened its comprehensive supply chain solution (SCA) to all Chinese sellers. This integrates Amazon Global Logistics (AGL), Amazon Warehousing and Distribution Network (AWD), Fulfillment by Amazon (FBA), and Amazon Multi-Channel Fulfillment (MCF) to provide end-to-end logistics services from manufacturers to consumers.

In this March, Amazon launched the Cross-Border Carrier Partner Program (Amazon SEND) to offer third-party shipping services for Chinese sellers, exporting billions of products.

"Strengthening global supply chain solutions" is one of Amazon Global Selling's strategic priorities in China for 2024. Specifically, in terms of cross-border logistics services and products, AGL has introduced Amazon Preferred Warehousing (AMP) and Ship to AWD products, which effectively help sellers improve warehousing management efficiency and reduce costs. Through AGL warehousing to AWD, sellers can enjoy a 15%-25% discount on AWD storage, handling, and transportation fees.

Deepening engagement with industrial clusters is one of Amazon's strategies to attract Chinese sellers. By the end of last year, Amazon had established hundreds of large-scale industrial clusters in China, targeting over 100 industrial belts. Currently, Amazon's pickup ports cover major ports nationwide, including areas densely populated with sellers and cross-border industrial belts like Guangzhou and Foshan. With this update, AGL has added the "Guangzhou-Foshan Integrated Pickup" function, providing more convenient "first-leg pickup" for cross-border goods in the Guangzhou and Foshan regions.

In terms of supply chain management, Amazon continues to accelerate customs clearance processes at European destination ports, simplifying procedures and improving cross-border logistics efficiency. For example, after upgrading the customs clearance processes for the Germany and UK routes, the average time from cargo arrival at port to release will be reduced to around two days. Enhanced automation of customs clearance documents will also improve visibility and transparency of inbound costs.

In terms of destination warehousing, Amazon is setting up AWD to better and more promptly respond to sellers' cross-border first-leg logistics and warehousing needs. Moreover, Amazon is continuously expanding new routes from China to more sites, supporting sellers in global business expansion. Before the start of this year's Amazon Prime Day, eight additional large-item warehouses exclusive to the US West Coast peak season will be added to meet peak season shipping demands.

In terms of local team building, Amazon will continue to enhance its existing local team resources, continuously invest in technological innovation, and use advanced technologies such as AI to more accurately predict and respond to customer needs, optimize product storage layouts, and improve overall supply chain efficiency, benefiting the entire cross-border logistics process.

Amazon China Vice President and Head of Amazon Global Selling Asia Pacific Product and Seller Education, Peng Jiaxi, emphasized that cross-border logistics supply chain management is a critical capability for sellers to expand into global markets and develop long-term businesses, with first-leg logistics being of utmost importance.

"In recent years, Amazon Global Selling has continuously introduced global resources, listened to seller needs and feedback, and deeply innovated local services and support, helping Chinese sellers manage their export cross-border supply chains in an efficient and convenient manner, laying a solid foundation for the high-quality development of cross-border business," she said.