Simply eCommerce with Amazon Multi-Channel Fulfillment(MCF)

Explore Amazon MCF: a potent tool streamlining inventory management, optimizing deliveries, and preserving your brand across multiple eCommerce channels.
June 1, 2023

In a world where e-commerce is king, it’s paramount to be everywhere your customers are. But with multiple platforms comes the potential for chaos in handling orders and ensuring timely delivery. So, how do you conquer this multifaceted online retail landscape? Enter Amazon Multi-Channel Fulfillment (MCF), a lesser-known yet mighty service that promises to bring order to the chaos of online selling.

What Exactly is Amazon MCF, and how does it work?

Amazon MCF is a logistics solution allowing you to leverage Fulfillment by Amazon (FBA)service, the world’s largest fulfillment network, to handle orders across various sales channels.  MCF is part of Amazon FBA but is available with or without using FBA.

With MCF, your inventory isn’t confined to Amazon’s marketplace—it reaches customers wherever they shop, be it on your website, eBay, Walmart, or even social media stores.

Here’s a brief overview of how MCF works:

  1. You send your inventory to Amazon, which will distribute and store them in their fulfillment centers.
  2. Customers order through any off-Amazon sales channel, such as your brand website, eCommerce, marketplace, or social media store.
  3. Amazon receives and processes your customer orders. They pick, pack, and ship your products to your customers.
  4. Amazon delivers orders to your customers within 1 day (Priority), 2 days (Expedited), or 3 days (Standard) after their ship date.

For existing Amazon sellers, the news gets even better. MCF allows you to use your current Fulfillment by Amazon (FBA) inventory to serve both Amazon customers and those from your other sales channels. It’s a win-win situation, saving you time and ensuring a consistent quality of service across all your sales channels.

The website interface of eCommerce with Amazon Multi-Channel Fulfillment (MCF), showcasing various features and options for sellers.


Amazon MCF’s Pricing Model

The Amazon Multi-Channel Fulfillment (MCF) pricing includes fulfillment and storage costs. Fulfillment costs start at $4.75 per unit and depend on product size, number of units per order, and shipping speed. Discounts of up to 50% are available for multi-unit orders. Storage costs start at $0.83 per cubic foot, with varying rates by the time of year. Long-term storage fees apply to units in an Amazon fulfillment center for over 365 days.

Three shipping speeds are available: Standard, Expedited, and Priority. Additional charges apply for shipping to specific locations and for certain carrier preferences.

It’s important to remember that these are base costs, and additional fees may apply in certain situations. For instance, if you’re shipping large volumes of inventory to Amazon’s fulfillment centers, you’ll also need to consider the cost of shipping to Amazon, even though Amazon does offer discounted shipping rates for this purpose. It’s always a good idea to crunch the numbers and consider all the associated costs to ensure that Amazon MCF is a cost-effective solution for your business.

The Advantages of Amazon MCF

Regarding fulfilling orders in the e-commerce world, speed, efficiency, and reliability reign supreme. Amazon’s Multi-Channel Fulfillment (MCF) brings all these and more to the table.

1. Superior Delivery Performance

Amazon commits to an impressive >97% on-time delivery rate with the MCF service. This means that businesses using MCF can assure their customers that their orders will arrive promptly and reliably. Moreover, deliveries are made seven days a week, allowing businesses to meet customer demands anytime.

2. Speedy Fulfillment

Customers expect their online orders to arrive quickly in today’s fast-paced world. MCF can meet these expectations by delivering products one day after their ship date. This speedy fulfillment process can differentiate your brand from competitors who may not be able to offer the same level of service.

3. Inventory Optimization

One of the primary challenges of operating in multiple sales channels is managing and coordinating inventory across all these platforms. MCF addresses this challenge by allowing businesses to consolidate their inventory into a single pool that can be used for all channels. This feature reduces costs, streamlines operations, and ensures businesses can fulfill orders from one central location.

4. Great Customer Experience

MCF not only ensures that orders are delivered promptly and accurately, but it also provides real-time tracking on every order. This transparency builds customer trust and satisfaction. Moreover, MCF boasts a 99.8% undamaged package delivery rate based on claims data from small and medium-sized businesses.

5. Unbranded Packaging

In the realm of e-commerce, branding is everything. When you use Amazon MCF, your orders are shipped in unbranded packaging, meaning there’s no visible Amazon branding on the boxes or packaging materials.

For businesses selling across multiple channels, it’s crucial to maintain a consistent brand image. You might not want your customers to know that their orders are being fulfilled by Amazon, particularly if they’ve placed them on another platform like your website or other marketplaces. This unbranded packaging feature allows you to leverage Amazon’s robust and efficient fulfillment infrastructure while maintaining the illusion of self-fulfillment.

The website interface of eCommerce with Amazon Multi-Channel Fulfillment (MCF), showcasing various features and options for sellers.


How to Create an MCF Order on Amazon?

Creating an MCF order is straightforward. Navigate to the “MCF Order Creation” page. There are two paths you can take:

After selecting the “Create Fulfillment Order” option from the top menu, you will be required to provide your customer’s shipping address, the items to be fulfilled, and your preferred shipping speed.

This simplified order creation method is ideal for businesses new to MCF, those with a modest order volume, or those keen on exploring the system.

Conclusion

In the intricate ecosystem of eCommerce, effective inventory management and order fulfillment play pivotal roles. Amazon Multi-Channel Fulfillment (MCF) emerges as an innovative solution, addressing these challenges by converging various sales channels into a consolidated, easily manageable platform.

Embracing solutions like Amazon MCF is not just about streamlining logistics; it’s about positioning your business to flourish in the digital age. Whether you’re an existing Amazon seller or a company exploring new avenues to expand your online presence, Amazon MCF might be the key to unlocking your eCommerce potential.

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