When selling on Amazon and your own DTC site, do you find it challenging to manage logistics and inventory on two separate platforms? Utilizing Amazon’s Multi-Channel Fulfillment could help reduce the complexity, improve shipping times, and likely save money.
What is it?
Amazon’s Multi-Channel Fulfillment is a simple, streamlined option for warehousing and fulfillment of your non-Amazon website orders.
1) Customers select items on your Direct-to-Consumer website and check out.
2) Order data and shipping details are transmitted to Amazon via a secure API connection.
3) Amazon picks and packs the order from your FBA inventory and ships the order to the customer. There is an option to use a white box instead of an Amazon-branded box. However, they do not offer custom shipper boxes at this time.
Why is this valuable?
Amazon’s Multi-Channel Fulfillment is streamlined, scalable, and faster for less (usually).
1) MCF enables brands to hold one consolidated block of inventory for both Amazon and DTC sales. There is no need to separately forecast demand and maintain two warehouses or pay costly fees and freight to move inventory where you need it.
2) Amazon’s FBA network has virtually unlimited capacity and the ability to scale on-demand. There is no need to staff up and ramp down seasonally – or the risk of getting deprioritized in peak season as traditional 3PLs try to keep up with demand.
3) Multi-Channel Fulfillment fees are typically less than most traditional 3PLs and package carriers, and the program gives you the option of offering affordable, accelerated delivery options to your customers.
How do you set it up?
Set up Amazon Multi-Channel Fulfillment and start fulfilling orders in about 5 minutes. If you’re already selling on Amazon and Shopify (or several other compatible platforms), set up is a breeze.
Log in to both admin accounts, install the plugin and accept the connection request, make sure your Shopify and Amazon SKUs match, and you’re off! MFC is also compatible with several multi-channel listing platforms as well as social media marketplaces.
How does it work?
Amazon Multi-Channel Fulfillment Costs – Storage and Fulfillment:
1) MCF orders are fulfilled from your general FBA inventory, so the same monthly storage fees apply.
2) For standard (non-oversized) products, the rate is $0.75 per cubic foot Q1-Q3 that jumps to $2.40 in Q4.
3) Long-term storage fees can be significant and kick in after 365 days.
4) Fulfillment fees are based on weight and dimensions and the delivery time selected by the customer.
Amazon Multi-Channel Fulfillment Fees as of June 1, 2021
1) Products ship in standard Amazon packaging.
2) Branding and customization of the packaging slip can be done through your ASC account.
3) A public waitlist is forthcoming for brands interested in ‘white-label’ packaging.
Customer Service and Returns:
1) Customer service is managed by the seller or brand like any other order placed on your DTC site.
2) Tracking information by the order is supplied via API and available once orders ship.
3) Brands can elect to have returns sent to Amazon for resale or directly to their own locations.
To learn more about whether or not Amazon Multi-Channel Fulfillment is right for your business, check out our webinar, “What is Amazon Multi-Channel Fulfillment (or Amazon MCF) and Why Use It?”.