- About Amazon Multi-Channel Fulfillment (MCF)
- How to sell products on Amazon MCF: Understand the process
- Benefits of working with multi-channel fulfillment by Amazon
- What is Fulfillment by Amazon?
- In What Way Does Amazon's FBA Operate?
- Comparison of traditional FBA vs multi-channel FBA
- Advantages of Amazon FBA
- Is Fulfillment by Amazon FBA the same as Amazon MCF?
- What is the price of using Amazon MCF?
For the benefit of those who aren't aware, the MCF program is an expansion of Amazon's FBA business. Merchants utilizing MCF have access to Amazon's extensive fulfillment network, allowing them to handle orders from Shopify, BigCommerce, and other channels. The services are comparable to those offered by FBA. However, the program is more costly and lacks customer support alternatives like returns management.
Some sellers are enthusiastic about the Amazon Multi-Channel Fulfillment (MCF) initiative. In contrast, others are wary, fearing that they would have to give up too much control or that their items will have to be sent in boxes with the Amazon logo. The most significant benefit can be order fulfillment, Amazon for inventory storage, and delivery speeds across your online storefronts. In the United States, orders placed via MCF may be fulfilled in as little as one business day.
How to sell products on Amazon MCF: Understand the process
Multi-channel fulfillment orders function like that of fulfillment by a third-party logistics provider:
Your inventory may be kept at their facilities, and orders can be processed on your behalf. Use Amazon's warehouses to stock up on supplies. Amazon MCF is only available in the United States, despite Amazon's extensive network of international e-commerce facilities. When you ship your goods to Amazon, the company will choose where to keep them in its vast network of warehouses. As soon as a customer places an order on your website, Amazon will get the details of that order. When you connect your website to the Amazon fulfillment network, every order made on your site is immediately forwarded to one of Amazon's warehouses.
Amazon is responsible for order fulfillment, from picking to packing to shipping. Amazon chooses and offers the most appropriate delivery method and completes the transaction. Remember that FBA orders from Amazon will always precede MCF orders from your website.
Benefits of working with Multi-Channel fulfillment by Amazon
To store and send items all over the globe, Amazon MCF is a helpful choice for sellers who have active websites since it enables them to make use of the speed, expertise, and corporate-level business transactions of Amazon. You may use this service for either a single purchase or several listings. Only sellers who have signed up for Fulfillment by Amazon can use the MCF. Any orders fulfilled through Multi-Channel Fulfillment will be charged to the seller's Amazon-linked credit card. You may also deduct the sum from the total amount sent if any extra money is available.
Additionally, the MCF service is available to professional seller accounts even if the seller has no listings on Amazon. You may do this by doing the things listed below:
Make an Amazon listing
Set the sales to start a few weeks from now and choose Fulfilled by Amazon. The date chosen should be in the future so the products may be sent and registered at the Amazon fulfillment center. When a seller's stock arrives at the distribution facility, the products become the exclusive responsibility of Amazon MCF. This indicates that the seller is using Amazon's services for warehousing, packing, shipping, and cataloging, but the products themselves are not visible on the Amazon website. These goods can only be seen on the vendor's third-party site.
Faster access and complete stock management
The MCF might be a good choice if you want to expand your company without taking on too much work. Amazon will handle all your order fulfillment and product storage needs, saving you the trouble and money of employing more employees or finding a larger location.
In addition, you'll be able to manage both Amazon and non-Amazon stock utilizing a single dashboard, thanks to the Amazon WMS. This way, you'll always know when you need to replenish your supply so that you always have merchandise.
Functionality and dependability
Is it fair to assume that Amazon is a solid business associate with a large clientele? To provide outstanding service to its clients, the company has over 175 warehouses in various locations worldwide and more than 150 fulfillment facilities in the United States. What's more, implementing any business procedure is a breeze. If you are familiar with Fulfillment by Amazon's (FBA) label design and shipping standards, you should have no trouble with MCF shipments.
Overall, MCF will make your retail company more organized and save you from feeling overwhelmed by the prospect of managing all the orders yourself. You'll have more time on your hands to take care of your health and think strategically about expanding your company.
You won't have to worry about unexpected problems when utilizing Amazon MCF. If you take the time to read and understand the details Amazon gives, you won't have to wonder how much it will cost to ship your item. In addition, you may utilize a cost estimator tool that is available online for free.
Since Amazon's business operations run like clockwork, you can be certain that every order placed via your website or any other third-party platform will be neatly packaged and promptly delivered to the consumer.
What is Fulfillment by Amazon?
FBA stands for Fulfillment by Amazon on the website. Amazon's Fulfillment by Amazon Web Services is one of the most sophisticated networks of its kind. Using Amazon’s FBA fulfillment center, Amazon will keep your goods in their warehouses and then send them to your customers after placing an order.
In What Way Does Amazon's FBA Operate?
When you sign up for Amazon FBA, you'll need to ship your products to one of Amazon's warehouses. Amazon handles everything related to Amazon e-Commerce integration after an order has been received. Logistics include product warehousing, selecting, packing, shipping, and handling returns. Once your goods have been delivered to an Amazon fulfillment facility, Amazon will be solely responsible for their safety.
The Amazon FBA service does have a cost associated with it, however. At this point, you'll be charged for things like the referral fee, which starts at 2% and ranges by category, the closure cost, which varies with the price range of the goods, the shipping fee, and any FBA-specific service fees.
Comparison of traditional FBA vs multi-channel FBA
Many vendors selling on marketplaces are acquainted with the standard FBA service. Because all the packaging and handling occurs in Amazon warehouses, it is comparable to Amazon MCF. The fulfillment fee is also proportional to the package's dimensions and weight. They also vary from one another in a few key respects. As a first step, MCF offers three distinct shipping choices:
Normal shipping is within 3-5 business days.
Shipping with a priority status within 2 days.
Speedy delivery that is the next day.
Despite its many advantages, you should be ready for certain difficulties if you decide on MCF. Some markets don't permit MCF because of their limitation regulations. Two examples of such stores are Walmart and eBay. You probably already know that Walmart and eBay prohibit advertising or branding on or in shipments. As of the year 2016, Amazon no longer gives vendors the option to use brand-neural packaging. Every order is sent out in an Amazon-branded shipping box. Therefore, if you wish to sell items on certain marketplaces, there are better options than Amazon Multi-Channel Fulfillment. Furthermore, you must recognize this factor to collaborate with Walmart and eBay.
Advantages of Amazon FBA
The system was developed to inspire vendors to post more lightweight and rapidly moving goods. The key advantages of Amazon FBA are the low, cheap price of a fulfillment charge. Products sold under the Small & Light program qualify for free Prime shipping since they meet the size and weight requirements within 3-5 business days. Even if you don't have Amazon Prime, you can still receive free shipping within 6-8 business days. Having your items accepted into the Prime program will greatly increase their exposure. In addition, buyers no longer have a $25 minimum order requirement to get free delivery. In most cases, this results in increased revenue.
To work from A to Z from Amazon. There are several advantages to participating in the FBA program. Amazon's "A to Z" guarantee is one such example. With FBA, Amazon's credibility and customer trust are transferred to you. Leave customer service and return to Amazon's expert staff so you can concentrate on running your company.
This program's key perk is its ability to lower fulfillment costs. Your profit margins will thank you for the reduced fulfillment costs, or you may pass the savings on to the client through cheaper pricing. No matter how it goes, everyone benefits. Products in the consumables section priced at $5 or less may be eligible for a 5% discount when two or more units of the item are ordered. Amazon will pay for the price reduction and not adjust your order. Simply put, they provide cost-free advertising for your goods.
Is Fulfillment by Amazon (FBA) the same as Amazon Multi-Channel Fulfillment (MCF)?
Mostly, Amazon merchants use Fulfillment by Amazon in some capacity. Amazon takes care of all the logistics for sellers after they ship their products to the online retailer. Amazon's Multi-Channel Fulfillment has similarities with eBay's True Commerce, but there are also significant differences. The main distinction between Amazon MCF and FBA is that the former caters to sales via outlets other than Amazon, while the latter is, naturally, limited to Amazon alone. Additionally, MCF has slower speed tiers, lesser service levels, and lower support availability.
Despite their apparent dissimilarities, FBA and MCF use the same fulfillment network and access the same stock. Keep in mind that MCF stock does count against your FBA limit, so if you're already working with less space than you'd want, this might be a potential source of frustration.
What is the price of using Amazon MCF?
FBA includes Amazon's multi-channel fulfillment services. Thus, there are two charges to consider. You'll have to pay Amazon a monthly storage fee if you want them to keep your goods in their warehouse. Payment is proportional to the space your goods take up in cubic feet. Amazon's prices for FBA and FBA-like services are the same. You can calculate the FBA multi-channel fulfillment cost by factoring in the number of items sent, the time it takes to deliver the goods, and the volume and weight of the item shipped.
Shipping one item of a small product that weighs less than one pound costs $5.85, whereas shipping five or more pieces only costs $2.20; choosing the two-day delivery option raises the price to $7.90 and the handling fee to $2.4. If your package is too big, you'll have to pay more. In addition, vendors may complete orders from customers in other countries using Amazon's fulfillment center. In this scenario, the average worldwide shipping cost is $13.65 plus dunnage fees.
How exactly do MCF Returns function?
The process of processing returns may be very time-consuming, particularly if hundreds of orders are distributed, and each has a different date. Using Amazon MCF, merchants may choose the return shipping address. Depending on the situation, it might be the seller's address or the Amazon Fulfillment Center. The former is preferable many times since Amazon can help vendors with restocking and repackaging.
Moreover, it is always preferable to return things to the sellers directly if the vendor sells perishable goods or products with a shorter shelf life. If you do this, you won't have to pay to have the merchandise hauled away.
The Amazon Multi-Channel Fulfillment service is a tempting option for a number of different merchants. You will be able to grow the business by using Amazon's distribution network, which will free you from the responsibility of fulfilling orders in-house. Although it offers many benefits, it also has certain limitations that might hold you back.
Incorporate Amazon's Multi-Channel Fulfillment (MCF) system into your Shopify store's workflow with the WebBee integration for hands-free order processing and real-time inventory and sales tracking. Through the WebBee integration, you will be able to make use of the advantages Amazon's fulfillment network offers for your Shopify purchases. Get quick fulfillment for e-commerce orders and improve operational efficiency.