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Amazon Multi Channel Fulfillment

Why You Should Choose Amazon Multi Channel Fulfillment Over a 3PL Service Provider?

There is no better way to ship your orders through Amazon Multi-Channel Fulfillment, a fulfillment service managed in the same manner by Amazon FBA when you are solely selling on the Amazon website and marketplaces. Your present 3PL partner or planned one, though, may be large incorporation but the market leader in eCommerce order fulfillment, undoubtedly, is Amazon FBA backed up by extensive eCommerce technology and supply chain management expertise.

Amazon FBA fulfillment centers are state-of-the-art, warehouses, that merely not stocks your items for a stipulated period of time but at the same time offer customer care and return services for each and every package shipped from Amazon fulfillment center. The benefits offered by Amazon Multi-Channel Fulfillment to a seller are huge and enormous and are just not limited only to fulfillment only. Some of the major benefits offered by multi-channel fulfillment to a seller are like:-

Shipping Options

A seller using Amazon MCF is offered three shipping options including. He can set his preferred shipping option and his package will deliver, accordingly.

  1. Standard shipping (3-5 business days)
  2. Expedited shipping (2 days)
  3. Priority shipping (next day).

Amazon FBA/MCF Fees

However getting into the details of the Amazon MCF fee structure, it is important for a seller to prior understand how the Amazon fee is assessed and calculated. To assess Amazon FBA or MCF fee three are three primary criteria, weight, size, and channel on which a product is being sold.

  1. Weight: Volumetric weight of an Amazon Product is measured.
  2. Size: Applicable dimensions of an Amazon Product are calculated.
  3. Channel:  Whether a product is sold on Amazon or an external site

When selling on Amazon using Fulfillment by Amazon, two types of fees are primarily charged from a seller including Amazon Fulfillment Fees and Monthly Storage Fee.

  1. Amazon Fulfillment Fees: This fee is charged one time for all services offered under Amazon fulfillment including picking, packing, shipping, providing customer, and arranging return if is applicable. This fee is calculated per unit basis.
  2. Monthly Inventory Storage Fees: These costs are incurred if you decide to store your products in Amazon’s warehouses, also known as fulfillment centers. This depends on the space occupied by the products and is calculated per cubic foot.

On the basis of size, the two important weight categories approved by Amazon are standard size and oversize.

  1. Standards Size: Any product weighing less than 20 pounds and dimension equal to or lesser than 18” x 14”x 8” comes under standard size.
  2. Oversize: Any product more than 20 pounds at its longest side exceeding 18 inches that is known to be oversize.

However, there are some common acceptable size categories by Amazon as follow:-

Maximum weights and dimensions for packaged items
Product size tier Weight Longest Side Median Side Shortest Side Length+ girth 
Small standard-size 12 oz 15 inches 12 inches 0.75 inches n/a
Large standard-size 20 lb 18 inches 14 inches 8 inches n/a
Small oversize 70 lb 60 inches 30 inches n/a 130 inches
Medium oversize 150lb 108 inches n/a n/a 130 inches
Large oversize 150lb 108 inches n/a n/a 165 inches
Special oversize* Over 150 lb Over 108 inches n/a n/a Over 165 inches

Amazon Fulfillment Fees per Unit While Selling on Amazon

Standard Size

Product Size Price
Small (10 oz or less) $2.50
Small (10 oz to 16 oz) $2.63
Large (10 oz or less)

$3.31

Larges (10 oz to 16 oz) $3.48
Large (1lb to 2lb)

$.4.90

Large (2 to 3lb) $5.42
Large (3 to 21lb)
$5.42 + $0.38/lb after the first 3 pounds

Oversize Products

Product Size Product Price
Small oversize (71lb or less) $8.26 + $0.38/lb above the first two pounds
Medium oversize (151lb or less)
$11.37+ $0.39/lb above the first two pounds
Large oversize (151lb or less)

$75.78 + $0.79/lb above the first 90 pounds

Special oversize $137.32 + $0.91/lb above the first 90 pounds

Multi-Channel Fulfillment Fee

This fee is being charged when the orders are received on third-party eCommerce stores beyond the Amazon website and Amazon marketplace and fulfilled with the help of Amazon FBA. The fulfillment fee charged on MCF for sample products as follow.

Product Type  Product Size  Dimensions Unit Weight  Shipping Weight  Standard Shipping Expedited

Shipping

Priority Shipping 
Mobile Device Case Small Standard 13.8 x 9.0 x 0.7 inches 0.18 lb

 

1 lb $5.79 $5.89 $12.80
T-Shirt Large Standard 8.5 x 5.8 x 1 inches

 

0.35 lb 1 lb $5.95

 

$6.99 $13.80
Iron Large Standard 12.6 x 6.6 x 5.5 inches 3.35 lb 4 lb $6.71 $7.75 $14.63
Baby Cot Small Oversize 25 x 8 x 7 inches 7.05 lb 10 lb $14.03

 

$15.03 $23.92
Monitor Large Oversize 54 x 35 x 3.5 inches 48.45 lb 50 lb $78.30

 

$78.30 $78.30

Amazon Monthly Storage Fee

Amazon’s monthly storage fee is charged on various criteria and methods. The most common method to charge Amazon monthly storage fee include.

Storage Month Standard-Size Oversize
January – September
$0.75 per cubic foot
$0.48 per cubic foot
October – December $2.40 per cubic foot
$1.20 per cubic foot

Monthly Storage Cost

INVENTORY ASSESSMENT DATE ITEMS IN FULFILLMENT CENTERS 181 TO 365 DAYS ITEMS IN FULFILLMENT CENTERS 365 DAYS OR MORE
Semi-annual (February 15 and August 15) $11.25 per cubic foot
$22.50 per cubic foot

Long Term Storage Fees

Inventory Assessment Date Items In Fulfillment Centers 181 To 365 Days Items In Fulfillment Centers 365 Days or More
Monthly (15th of every month) $3.45 per cubic foot
$6.90 per cubic foot

Minimum Long Term Storage Fees

Inventory Assessment Date Items in Fulfillment Centers 365 Days Or More
Monthly (15th of every month) $0.50 per unit

While choosing carefully between Amazan FBA and MCF for selling on Amazon or not, the profit lies mostly in favor of MCF. While selling on third-party sites a seller is not required to pay an Amazon referral fee that occurs to be 10% percent of selling price and more depending upon the type of product sold on Amazon or external sites. There, nowadays are a variety of MCF apps like Amazon Shopify integration and others that make Amazon Fulfillment successful and unique. Hence, Amazon Multi-Channel fulfillment happens to more competitive and successful in comparison to Amazon FBA.

Convenience and total inventory control

The main advantage of multi-channel fulfillment is convenience and total inventory control. Since everything is shipped and managed from the same warehouse, it is easy to always keep stock numbers up-to-date across all of your sales channels. In turn, this helps to avoid overselling and maintain the high quality of customer service.

Reliability of Amazon

Last but not least, another important advantage of MCF is Amazon’s reliability. Today, Amazon has over 75 fulfillment centers all over the US and more than 125,000 full-time employees. With numbers like that, you know for sure that Amazon has all the means to fulfill your order quickly and efficiently.

It is not to say that Amazon’s multi-channel fulfillment is absolutely infallible but on a major scale it is a service that you can rely on. And by leaving Amazon to deal with your order fulfillment you can redirect your efforts to developing a new marketing strategy, scaling your business, or elsewhere you see feasible.

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