May 11, 2019

Getting Started with Amazon Multi Channel Fulfillment (MCF): Discover the Business Advantage

Most of the time, Amazon is not only the best place to sell any kind of product. Now, it is more of having your online store. This means that Amazon never failed to open new opportunities for everyone, especially as it offers the Amazon Multi Channel Fulfillment (MCF).

If you have already engaged in different online selling activities, you might hear about Amazon MCF. For sure, you also want to be part of it. However, you want to know whether it is right for you or not.

Here, you can have a better understanding of Amazon Multi Channel Fulfillment (MCF) along with its pros and cons.

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What is Amazon Multi-Channel Fulfillment (MCF)

Amazon Multi Channel Fulfillment (MCF) is an extension of Fulfillment by Amazon (FBA) program which enables the sellers to fulfill their orders via Amazon platform even without separating the stock units for other sales channels.

Since Amazon MCF offers similar service with FBA but the only difference is that it can integrate with other platforms. Meaning, even you are selling through your eBay, Shopify, and other platforms, Amazon will still perform storing, packing, and shipping of your inventory.

Thus, apart from providing Amazon MCF in the United States, Amazon also offers the program in the UK, Germany, Canada, Mexico, Germany, France, Spain, Italy, and Japan.

Pros of  Amazon MCF

Many online sellers consider Amazon Multi Channel Fulfillment (MCF) as a new wave of creating more sales and opportunities. It also delivers easier stock management and control over shipping demands.

Through Amazon MCF, Amazon was able to extend its capabilities further to reach multiple-channel eCommerce. As for the sellers, they can concentrate more on their online business. So, it is better for you to discover the pros and cons of Amazon MCF to analyze whether it applies to your business needs.

  • Multiple Shipping Options.

The same way to FBA shipping options, Amazon MCF also offer three shipping options. These options include one-day priority shipping, two-day expedited shipping, and standard shipping (3 to 5 business days) shipping. Having multiple shipping options can help you become more flexible with your deliveries.

  • Inventory Storage Space.

With Amazon MCF, you are required to calculate how a room you will need. That is because Amazon will receive and stock the inventories at one or multiple Fulfillment centers in different parts of the world.

  • Full Control of Inventory.

Although Amazon is responsible for handling the logistics, sellers can still have the actual control over inventory. So, you are free to request to return the inventory to you any time you want.

  • Branding and Customization.

Amazon allows you to take advantage of brand promotion such as custom messaging on the packing slips and ship the products using plain brown boxes instead of boxes with Amazon’s logo.

  • Basic Returns Processing.

The Amazon in the event of product returns or replacement will provide tracking numbers. Then, they will handle these returns based on your preferences.

  • Exclusive Multi-Channel Listing for Pro Merchants.

If you have a Pro Merchant account, you can list your products exclusively for MCF even without listing them on Amazon for selling.

  • Managing Spikes in Orders During Peak Season.

With the help of Amazon MCF, you can easily manage your orders during peak season. That is because Amazon will be handling the bulk shipping.

Cons of Amazon MCF

On the other hand, Amazon MCF may cause disadvantages:

  • other marketplaces where you plan to sell your products may not support MCF;
  • strict restrictions on products that can be sold, therefore, many products Amazon will not allow to sell (for example, perishable products, Spray deodorants, Powerbanks and more);
  • Fulfillment Fee when using MCF is slightly higher compared to the same fee in FBA;
  • Fulfillment Fee does not change in different seasons (in the FBA, this commission is slightly lower in the October-December holiday season);
  • Amazon MCF is not ideal for your low-profit margin;
  • packaging of goods in boxes with the Amazon logo (if you do not have other packaging) may not like the buyer, if he ordered the goods, for example, in your online store.

But, overall, you can experience exciting advantages.

When Amazon MCF is profitable to use?

Amazon Multi-Channel Fulfillment Channel (MCF) is an excellent option if you belong to multiple e-Commerce platforms. Through the one-and-two-day shipping options, you have the opportunity to increase customer retention and satisfaction.

Using the program, your business operations will become more organized, less stressful, and more efficient. You can spend more time focusing on other business aspects, including product sourcing, marketing, and growing your brand.

How much does Amazon MCF cost?

If you enter Amazon MCF, you need to deal with two significant fees involved such as storage fee and fulfillment fee.

In the fulfillment fee, you will be charged monthly levied by the Amazon to stock the products in the Amazon FBA warehouse address. Thus, the fee is considered as commensurate to the cubic footage volume being occupied by the products. The fulfillment fee will depend on the total number of units you will ship, product volume, and shipping duration.

If you want to know more about the cost of fees, look at this page.

How to process returns?

Processing returns can be stressful especially if you have hundreds of orders to process while considering the deadline for each.

Through Amazon Multi Channel Fulfillment (MCF), sellers can choose between getting the customers to return the products to the Amazon FBA address and shipping them directly to you.

The former option is ideal in most situations Amazon can assist the sellers during the repacking as well as stocking the products for sale. On the other hand, if you are involved in selling perishables or products with short shelf life, it is better to return the products to the sellers’ address. This way, they can avoid paying an additional fee for removing the product.

Conclusions

Growing a business on multiple sales platforms can be challenging. However, Amazon Multi Channel Fulfillment (MCF) can help you grow and create new opportunities on multiple e-Commerce platforms while meeting the delivery expectations of your customers. Keep in mind that one way of satisfying your customers is through quick delivery. Thus, you can have the ability to scale your business up and continue to operate on Amazon.