How Does Multi Channel Fulfillment by Amazon Work?
Amazon Multi Channel Fulfillment (MCF) is an advanced logistics and fulfillment service offered by Amazon that enables sellers to extend their reach beyond the Amazon marketplace to other sales channels. With MCF, sellers can list their products on multiple platforms like their own websites or other eCommerce marketplaces, and when a sale is made, Amazon's fulfillment centers take over the tasks of packing, shipping, and providing customer service for these orders. This makes MCF a compelling option for sellers who want the expansive and efficient logistics capabilities of Amazon, even for orders that are not originating from Amazon's own marketplace.
How Does Multi Channel Fulfillment Work?
For those sellers who already have their own eCommerce platforms or are selling through multiple venues, Multi Channel Fulfillment is a godsend. It enables these sellers to take advantage of Amazon's global reach, reliability, and operational expertise for shipping products worldwide. This offering is adaptable to both single and bulk orders. The process is relatively straightforward: sellers must first have a Fulfillment by Amazon (FBA) account, and once an MCF order is processed, the associated costs are either billed to the credit card linked to the seller's Amazon account or subtracted from any funds pending transfer to the seller at that time.
Understanding the Distinction Between MCF and Fulfillment by Amazon (FBA)
While both Multi Channel Fulfillment and Fulfillment by Amazon (FBA) offer similar end-results in terms of logistics and fulfillment, the key difference lies in the sales channel. FBA is geared toward sellers who are focused solely on Amazon's marketplace; all order, handling, and fulfillment processes for FBA originate and culminate within Amazon's platform. In contrast, MCF is an expansive approach that caters to orders placed on third-party websites and sales channels not directly connected to Amazon. This distinction is critical for sellers who are looking to diversify their sales channels but still want to capitalize on Amazon's robust fulfillment network.
Order Processing Under MCF: A Step-By-Step Guide
Processing an order using Multi Channel Fulfillment involves several steps. Upon receiving an MCF order through an alternative channel, specific steps must be taken to inform Amazon about the arrangement:
1. Inventory Management: Access the “All Inventory” section on your Seller Account page.
2. Initiate Fulfillment: Select the “Create Fulfillment Order” link.
3. Input Information: Provide necessary transaction details such as shipping address, shipping method, and any other relevant data. This is also the platform where sellers can submit bulk orders.
This is also the stage where sellers have the opportunity to include any special customization options, like beta customizable packing slips, to offer a more personalized experience to the buyer.
A Closer Look at MCF Shipping Options
MCF offers an array of shipping options to accommodate various customer needs:
Standard Shipping: Includes a one-day processing time and a delivery window of three to five days.
Two-Day Shipping: Faster delivery but at an increased cost.
Next-Day Shipping: For urgent deliveries.
Sellers play a role here by relaying the selected shipping option to Amazon for the final fulfillment process.The choice of shipping is largely in the hands of the buyer, who selects their preferred method at the point of purchase. It's essential to note that the shipping address is locked in once the order leaves the fulfillment center and cannot be changed thereafter.
Utilizing MCF Without Amazon Listings
Interestingly, MCF can be used even if a seller doesn't want to list their products on Amazon. Here’s how:
1. Create an Amazon Listing: First, list the product on Amazon without making it immediately available for purchase.
2. Set a Future Selling Date: Opt for a 'Fulfilled by Amazon' selling status and set a future selling date. This provides ample time for inventory to be shipped and stored in Amazon’s fulfillment center. (The idea is to set the availability date weeks into the future, allowing enough time for the inventory to be shipped and processed at an Amazon fulfillment center.)
3. Inventory Management: Once the inventory reaches Amazon, it is tagged exclusively for MCF. This means your products will not be displayed on Amazon but will still benefit from its fulfillment services, visible solely on your third-party site.
Navigating Returns and Cancellation Policies in MCF
When it comes to product returns, the responsibility lies entirely with the seller, not Amazon. MCF only covers the shipping and packaging aspects, leaving return policies and their execution up to the individual seller. Regarding cancellations, MCF orders can only be canceled within the first 15 minutes after being placed, while the order status is still in the planning stages. After this brief window, Amazon reserves the right to decline any cancellation requests.
Recent Changes in Multi Channel Fulfillment Fees: What You Need to Know
In an effort to make MCF more appealing to sellers, Amazon has recently made significant adjustments to its fee structure. For example, shipping prices for expedited and priority options have been reduced by up to 32%, which could be a game-changer for businesses that rely heavily on fast shipping. Additionally, Amazon has consolidated various fees like Order Handling, Pick & Pack, and Weight Handling into a single per-unit fee, making it easier for sellers to understand their cost structure. Plus, tiered discounts are now offered for multi-unit orders, giving sellers another incentive to use this service for larger shipments.
The Added Touch: Customizable Packing Slips
One of the more unique features of MCF is the ability for sellers to include customizable, branded packing slips with their shipments. This additional layer of personalization can serve as a touchpoint for customer engagement and brand building. Not only does it offer the customer a tailored unboxing experience, but it also serves as a tool for businesses to convey their brand message and information directly to their customer base.
Understanding the complexities and advantages of Amazon's Multi Channel Fulfillment service is crucial for any seller looking to diversify their sales channels while benefiting from Amazon's world-class logistics and fulfillment capabilities. With options ranging from branded packing slips for a personalized touch to various shipping methods tailored to customer preferences, MCF offers a suite of features designed to streamline operations and enhance customer experience. However, it's essential for sellers to also consider factors like return policies, fee structures, and their own multi channel strategies when deciding if MCF is the best fit. As the eCommerce landscape continues to evolve, leveraging services like MCF could be a pivotal strategy for sellers aiming for scalability, efficiency, and customer satisfaction in an increasingly competitive market. We hope this article helped you understand the complexities of Amazon Multi Channel Fulfillment!
Thank you,
Commerce Canal Team
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