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How to Receive a Cost and Competitive Advantage with Amazon Multi Channel Fulfillment?

January 25, 2021

Amazon FBA integrated with a seller’s listing on Amazon for the purpose of efficient and faster fulfillment provides a seller not only faster shipping but also at the same time provides reduction in overhead costs, packaging and other benefits by applying world’s most advanced fulfillment network. The FBA service is recognized as Amazon Multi Channel Fulfillment in case used by a seller on his sales channel beyond Amazon Market Place. The list of point of sales (POS) beyond Amazon marketplace catered by Amazon FBA integration, however, is not limited only to third party eCommerce stores like Shopify, BigCommerce but also get integrated with other marketplaces.

Amazon Multi Channel fulfillment also known as FBA cross channel fulfillment,   offers a seller an immense level of business scalability using Amazon inventory management aligned with Amazon FBA. A seller under Amazon Multi Channel fulfillment can simply list his FBA inventory with third party stores and market places like eBay and Jet.com and fulfill orders from these POS via Amazon FBA integration.

Why an eCommerce Store Owner Should Opt for Amazon Multi Channel Fulfillment?

An impressive Amazon multi channel fulfillment strategy is very effective and revenue eccentric for an eCommerce business. Using Amazon MCF integration, a third party seller can fulfill his orders in a fast paced environment from his website as well as third-party marketplaces. There are many other benefits offered in addition to process automation by Amazon Multi Channel Fulfillment as enhanced product visibility and improved customer experience. The major benefits to a business by hiring fulfillment from Amazon FBA are like:-

Fulfillment From Amazon FBA
  • An Effective Price Management: While using Amazon Multi Channel Fulfillment, FBA charges only for the storage spaces and fulfillment services offered. A seller on Amazon FBA can begin from as low as $2.57 for media items and $5.96 for non-media items. However, a seller weighing his options to use the best market places to use cross-channel fulfillment through FBA should consider cost and fee differences between many marketplaces. Despite being the commission and referral fee charged by different marketplaces to be same while adding them to one’s fulfillment fee offers a seller a better option for a seller to choose his preferred marketplace to sell his items. The standardization of FBA fee makes it easier for a seller to sell his goods across any marketplace using Amazon MCF.
  • Improved Business Scalability: For a third party store owners like Shopify, the scalability is an imperative business benefit offered by Shopify Amazon FBA integration in addition to fulfillment. It present a business with avenues to expand and grow by lowering operational cost, improved business process time, and resource accumulation to be used across different areas of business activities. Amazon, while clearly mentioning its fulfillment fees helps a seller to remain scalable while at the peak time of his business. The other scalability benefits offered to a seller by Amazon Multi Channel Fulfillment is better data visibility through capturing and reporting data related to inventory, order and fulfillment.
  • Working Across Mutiple Marketplaces at the Same Time: Heading the conversation forward and ahead, working along with multiple marketplaces simultaneously is a useful strategy for both, the small as well as large merchants. Merchant having a large and diverse set of SKUs can divide their inventory according to the marketplaces. He can set his apparel line at Amazon and perfumes at Walmart. He can set his inventory according to the margins earned from different market places. Whereas, a seller having a smaller set of SKUs can increase product exposure across different market  places through Amazon MCF integration.
  • Business Competitiveness and Incentives Offered: Amazon FBA for cross channel fulfillment offers low shipping and storage cost in comparison to other third party logistics service providers. With competitive pricing offered for storage and fulfillment, the Amazon Multi Channel Fulfillment allows immense scalability to a business without increasing its operational and overhead costs. With Amazon MCF, eCommerce sellers get access to very reasonable price and faster delivery not only in US but also across different countries in the world. No doubt, goods and items shipped on lower shipping costs and faster speed is always a business and competitive advantage.
  • Cost Estimations for Making Multi Channel Fulfillment Successful: While using Amazon MCF across different and far reaching marketplaces, the higher margin products easily absorbs the additional costs of multi channel fulfillment in return for greater reach and exposure provided by Amazon MCF. The sale for products with thin margins is not that profitable. So using Amazon FBA for fulfillment across marketplaces and sales channels can be calculated with the selling margin provided by different market places. And the right channel should be assessed based upon the profits margins opportunities still lying after FBA fee plus marketplace selling margins. Amazon FBA Fulfillment fee estimations for media and non-media items
Read more about: How Amazon Multi Channel Fulfillment Fees Have Changed in Recent Times?
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Thus, it is quite evident that Amazon Multi Channel fulfillment offers a faster and far competitive shipping option to a seller while shipping his orders through different sales channels. It is always a wise decision on a seller’s part to weigh margins on a marketplace while combining it with fulfillment fee charged by  Amazon FBA before selling an item on it.