Thanks to its powerful logistics infrastructure, Amazon successfully competes with leading carriers and ensures high-quality service. In the first three months of 2024 alone, the company delivered over 2 billion items on the same or next day for its Prime customers. At the beginning of 2023, Amazon introduced a new program called Multi-Channel Fulfillment (MCF), offering online sellers its logistics capabilities to fulfill orders from various sales channels.
It’s an excellent opportunity to take advantage of Amazon’s fast and high-quality service beyond its platform. However, like any service, Amazon MCF has its nuances and pitfalls. In our article, we will thoroughly examine what the Amazon Multi-Channel Fulfillment program entails, the benefits it can offer your business, and the challenges you may face.
- 1. What Is Amazon MCF?
- 2. What’s the Difference Between Amazon Multi-Channel Fulfillment and FBA?
- 3. How Does Amazon Multi-Channel Fulfillment Work?
- 4. Amazon Multi Channel Fulfillment Pricing
- 5. How to Start Selling with Amazon Multi-Channel Fulfillment?
- 6. Advantages of the Amazon Multi-Channel Fulfillment
- 7. Disadvantages of the Amazon Multi-Channel Fulfillment
- 8. Conclusion: The Future Development of Amazon Multi-Channel Fulfillment
- 9. Frequently Asked Questions
Multi-Channel Fulfillment is an Amazon service that allows sellers to utilize the company’s warehousing and logistics capabilities to fulfill orders not only from Amazon itself but also from other marketplaces and their own websites. With the MCF program, you can store your products in Amazon warehouses and ship them directly to customers using the company’s reliable and efficient logistics network.
It is important to note that you do not need to be an Amazon seller to use MCF. Any entrepreneur can take advantage of this service. However, to start using the program, you will need an account in Seller Central.
As of today, the program is available in several countries, including:
- United States of America (USA)
- Canada
- Mexico
- United Kingdom
- Germany
- France
- Italy
- Spain
- Japan
In essence, Multi-Channel Fulfillment operates similarly to the FBA service. Both services use Amazon’s warehouses and logistics infrastructure to fulfill orders. Additionally, MCF sellers utilize FBA centers for processing and shipping orders that come from other sales channels outside of Amazon. Despite the similar operational principles, they serve different purposes and have several key differences. Let’s explore what these differences are.
| Amazon MCF | Amazon FBA |
|---|---|
| Supports orders from multiple sales channels, including Amazon and external websites | Exclusively for orders placed on Amazon |
| Includes fees for storing goods and fulfilling each order based on its weight and size. Compared to the FBA service, MCF fulfillment costs are generally higher | Includes 3 types of fees: a monthly storage fee, a 15% referral fee for each sold unit, and fulfillment fees |
| Offers three shipping options: standard delivery within 3-5 business days, expedited delivery in 2 days, and priority delivery in 1 day | In addition to the 3 delivery options, FBA sellers also have access to same-day delivery (for Prime members) |
| Packages can be shipped in non-branded boxes | Orders are shipped in Amazon-branded packaging |
The main difference between the two services lies in the sales channels they support. FBA is designed exclusively for orders coming from the Amazon platform. Multi-Channel Fulfillment (MCF) allows sellers to fulfill orders from various sources. This makes MCF a more flexible option for sellers who want to use a single logistics infrastructure for all their sales channels.
From a financial perspective, MCF sellers may face higher fulfillment fees compared to FBA sellers. This is because FBA benefits from Amazon’s more favorable shipping rates and other services. However, MCF sellers have a significant advantage when it comes to brand promotion. They are not required to use Amazon’s branded packaging, unlike FBA sellers who must adhere to Amazon’s packaging requirements.
MCF offers greater flexibility in logistics management and branding. Conversely, FBA is ideal for sellers exclusively targeting the Amazon marketplace, providing them with a comprehensive suite of services for fulfilling orders within the platform.
Amazon Multi-Channel Fulfillment (MCF) is a powerful logistics management solution that allows sellers to leverage the company’s extensive infrastructure to fulfill orders from various sales channels. The service ensures a fast and reliable order processing workflow, from storing products in Amazon warehouses to delivering them to customers. The service process can be described in the following steps:
3.1 Shipping products to Amazon Fulfillment Centers
To start selling through Multi-Channel Fulfillment, similar to FBA, you need to prepare and send your inventory to Amazon’s fulfillment centers. For convenient internal logistics and quick delivery, the company distributes clients’ inventory across multiple fulfillment centers. You can send your products to the nearest fulfillment center and, for an additional fee, have Amazon handle the distribution. Alternatively, you can distribute the inventory yourself across multiple Amazon warehouses. The company charges a monthly storage fee based on the actual space your inventory occupies.
3.2 Integrating sales channels with Amazon
For automatic transmission of order information to Amazon, you will need to set up API integration with your sales channels. This will speed up the processing and delivery of your orders.
3.3 Order processing
When an order is placed on any of your sales channels, you can manually create a fulfillment order through Seller Central. If you have a large volume of orders, use Amazon MCF’s API integrations, as mentioned earlier. With this integration, warehouse staff will automatically receive all the necessary order details and can quickly start processing it.
3.4 Picking and packing
Amazon employees pick items from your inventory, pack them, and prepare them for shipment. Typically, the company uses its own branded packaging for this process. However, for those looking to promote their own brand, Amazon also offers unbranded packaging options.
3.5 Shipping
After preparation, Amazon will ship the order to your customer using its logistics network. You can choose from various delivery speeds:
- Standard (3-5 business days)
- Expedited (2 days)
- Priority (next day)
Amazon also provides the option to track MCF orders through Seller Central.
Just like for FBA sellers, participating in the Multi-Channel Fulfillment program is not free. Within the MCF program, Amazon charges fees for storage and order fulfillment.
Storage costs are calculated based on the actual space your goods occupy in the fulfillment centers. Storage during peak months is more expensive than during the rest of the year. To minimize these expenses, avoid long-term storage of items with low demand.
Order fulfillment fees depend on the size of the items, the weight of the order, and the chosen delivery speed. As the number of units in a single order increases (from 4 units and more), Amazon applies discounts. This helps sellers save on logistics costs when shipping large orders. The tiered discount structure applies to each of the three delivery options.
In addition to the basic fees, Amazon MCF also charges a range of additional fees:
- Receiving inventory at fulfillment centers: This fee is similar to that charged for Amazon FBA and includes the cost of processing incoming goods at the warehouse.
- Removing inventory from the fulfillment center: This fee covers the cost of removing goods from Amazon’s warehouses.
- Shipping international orders: Orders sent outside the country incur additional fees, which are 100% of the standard shipping cost for regular items and 200% for oversized items.
To start using Amazon MCF, you’ll need a Seller Central account. If you already have an account, simply log in and set up your MCF orders. If you’re new to Amazon, you’ll first need to complete the registration process on Seller Central.
To create an MCF order, you have two options:
- manually through Seller Central
- via Amazon MCF API integration
5.1 Processing orders through Seller Central
Through Seller Central, Amazon provides the capability to create both individual orders and bulk orders for large volumes.
To create a single order:
- To access the Amazon Multi-Channel Fulfillment page, go to the main menu of the Seller Central dashboard and expand the “Order” dropdown menu.
- Select “Create MCF Order” from the dropdown list. You will be redirected to the order creation form, where you will need to enter the order details.
- Enter the necessary order information, including customer details, product specifics, quantity of units, and preferred shipping speed.
- Review the entered information to ensure its accuracy. Once confirmed, click the “Place Order” button in the lower right corner of the page. Your order will be processed and sent to Amazon’s fulfillment centers for picking and shipping.
To create a bulk order:
- Go to the Multi-Channel Fulfillment page by selecting “Create MCF Order” from the “Order” dropdown menu on the Seller Central home page.
- In the top right corner of the page, there is a link labeled “Create bulk orders.” Click on it to access the Excel template upload page.
- Click on “Download create order template” to download the order template file.
- Open the downloaded template in a spreadsheet application and fill in each column with the relevant information.
- Click “Upload template” to upload the file to the platform.
5.2 Processing orders with Amazon MCF API integration
For sellers with a high volume of orders or those looking to automate the process, Amazon offers a solution to integrate MCF with your sales channels. Integration allows for the automatic transfer of order information into Amazon’s system, streamlining the processing. Amazon supports custom API integration and provides comprehensive documentation for development. For integration with various marketplaces, the company offers ready-made MCF plugins. These are available for many popular platforms, including:
- Shopify;
- WooCommerce;
- BigCommerce;
- Wix;
- AdobeCommerce и др.
If you have multiple sales channels, you can use third-party software for their integration. With integration, Amazon can manage all your orders from a single platform, providing a unified and transparent process for inventory management and order fulfillment.
Amazon Multi-Channel Fulfillment is an excellent opportunity to enhance logistics, improve customer service, and efficiently manage your online business. Here’s why using Amazon MCF can be advantageous:
6.1 Amazon’s extensive logistics network
Amazon Multi-Channel Fulfillment provides access to one of the most extensive and efficient logistics networks in the world. Beyond its fleet of 70,000 vehicles, Amazon boasts up to 5,000 electric vehicles and an air fleet of 110 planes. Leveraging this infrastructure, sellers can quickly and reliably deliver products, meeting their customers’ needs across all sales channels.
6.2 Scalability
Amazon Multi-Channel Fulfillment allows your business to grow and scale without the need for significant capital investments in logistics infrastructure. Whether the number of orders increases during peak sales seasons or your business expands into new markets, MCF can easily handle the increased order volumes. This means you can focus on growing your business without worrying about logistical constraints.
6.3 Automated fulfillment with API integration
Amazon MCF offers API integration capabilities that allow for the automation of the order fulfillment process. You can configure your ecommerce systems to automatically forward orders to Amazon for fulfillment. This reduces order processing time, minimizes the likelihood of errors, and frees you from the need to manually enter data. Automation also enables you to respond to customer orders more quickly and improve the overall service experience.
6.4 Centralized inventory storage
You don’t need to manage multiple warehouses or logistics centers. Amazon has a network of strategically located warehouses, which will allow you to reduce delivery times and lower logistics costs. Centralized storage will also simplify inventory management and enable faster restocking as needed.
Although Amazon Multi-Channel Fulfillment offers many advantages and can significantly simplify the order fulfillment process, it also has its drawbacks that can impact the efficiency and profitability of your business. Understanding these disadvantages will help you make more informed decisions regarding the use of this service.
7.1 Does not offer customer support service
One of the main drawbacks of Amazon MCF is that it does not provide customer support services to sellers. This means that any customer inquiries, complaints, and requests will need to be handled by you directly. For sellers, especially those managing a large volume of orders, this can become a significant burden and may require additional resources.
7.2 International shipping can be expensive
While Amazon Multi-Channel Fulfillment offers highly efficient domestic delivery, international shipping incurs high fees. Shipping orders outside the country comes with steep tariffs, which can make this option less cost-effective for sellers operating in the global market. These additional costs can significantly increase the overall fulfillment expenses and reduce profit margins.
7.3 Not all products are allowed for sale through Amazon MCF
Amazon has strict rules and restrictions on the products that can be stored and shipped from their fulfillment centers. This can include certain product categories, hazardous materials, or items that require special storage conditions. Before using the service, carefully review these restrictions to ensure that your products meet the requirements of Amazon Multi-Channel Fulfillment.
7.4 Poor branding
Although sellers can opt for non-branded packaging, the lack of complete control over the packaging and presentation of the product can negatively impact brand perception. Customers may not associate the received orders with your brand, making it harder to build brand recognition and loyalty.
7.5 High fees compared to FBA
Amazon Multi-Channel Fulfillment charges 30-50% higher fees compared to FBA. These costs can significantly impact profit margins, especially for small and medium-sized businesses.
Amazon has expanded its business beyond its own platform by offering online sellers the opportunity to leverage its powerful logistics infrastructure through the Multi-Channel Fulfillment service. This is a great opportunity for sellers on other platforms to take advantage of the fast and reliable delivery that Amazon offers.
Competition in the logistics and order fulfillment sector is intensifying, and Amazon aims to maintain its leadership by offering new solutions to enhance service quality and customer satisfaction. For sellers, this means that the opportunities provided by Amazon MCF will continue to grow, making it an even more attractive choice for business development and scaling. However, the choice of logistics service provider should be based on the specific needs of your business. As of now, MCF may not be suitable for all sellers, particularly those offering international shipping or looking to promote their own brand.
For sellers operating in international markets or those who desire greater control over branding, it may be more beneficial to consider partnering with 3PL providers. For example, Fulfillment-Box offers an extensive international network of warehouses and advantageous partnerships with leading shipping services. This enables us to provide fast and cost-effective delivery worldwide. Additionally, Fulfillment-Box offers the option to customize packaging according to client preferences, which helps effectively promote your brand.
Successful management of logistics and order fulfillment is a key factor for growth and success on both Amazon and other ecommerce platforms. Whether you choose to use Amazon Multi-Channel Fulfillment or services from a third-party provider, it’s crucial to select a solution that best aligns with your needs and strategic goals.
1. What is Amazon MCF?
Amazon Multi-Channel Fulfillment is a service that allows sellers to leverage Amazon’s logistics infrastructure to fulfill orders from various sales platforms, including their own online stores.
2. Do you need to be an Amazon seller to use the Multi-Channel Fulfillment service?
No, it is not necessary to be an Amazon seller to use the Multi-Channel Fulfillment service. The service is available to both Amazon entrepreneurs looking to expand into new markets and sellers interested in leveraging Amazon’s logistics capabilities to fulfill orders through their own sales channels outside of the platform.
3. What countries does Amazon Multi-Channel Fulfillment serve?
Amazon MCF is available for sellers in the USA, Canada, Mexico, and several European countries.
4. What fees are charged for using Amazon MCF?
The fees include charges for inventory storage and for each fulfilled order. The cost of fulfilling an order depends on the size and weight of the item, the number of units in the order, and the delivery speed.
5. What is the return policy for orders fulfilled through MCF?
Amazon Multi-Channel Fulfillment provides the option to send returns back to Amazon’s fulfillment centers. Returned items can be processed and reintegrated into your inventory. The MCF seller decides whether to send the return to an Amazon fulfillment center or to their own warehouse.
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