Amazon’s Multi-Channel Fulfillment (MCF) program is a third-party logistics solution intended for businesses that want to scale their operations without increasing their fixed costs. This solution is not just for Amazon Sellers; e-commerce businesses of any size can use it. Read on to learn all about the Amazon MCF program!
Amazon’s Fulfillment Network
Amazon has a robust network of fulfillment centers that enables it to quickly pick, pack, and ship customer orders. Any business, whether on or off Amazon, can send inventory to these centers. This means that any inventory sent to Amazon and consequent orders are treated like Fulfillment by Amazon (FBA) orders.
FBA vs. MCF
The key difference between FBA and MCF is that FBA is for Amazon Seller orders only, while MCF uses Amazon’s fulfillment network to fulfill orders on any e-commerce sales channel. This includes Shopify sites or a business’s direct website. Multiple integrations already exist to make connecting off-Amazon sales channels to MCF easier.
The advantage of using MCF is that a business can still control its sales and inventory across all of its e-commerce platforms while using Amazon’s fulfillment network as a single source of inventory storage and order fulfillment. According to Amazon, “shipping with FBA costs 70% less per unit than comparable premium options,” which is helpful for small to mid-sized businesses that wish to scale without significantly increasing their fixed costs.
Any Size E-Commerce Business Can Use Amazon’s MCF Program
Businesses that already have an Amazon Seller Central account don’t need to go through an additional enrollment process to use the MCF program. It is as simple as sending inventory to Amazon’s fulfillment centers (FBA) and routing orders from an off-Amazon sales channel, such as Shopify, to Amazon. Businesses that do not have an Amazon Seller account simply need to enroll via a form through Amazon’s Supply Chain site.
Advantages of Using MCF
One of the advantages of using MCF is that orders fulfilled by Amazon reach customers faster due to their expansive fulfillment network. Businesses can also expand where they sell their products (such as social media shops and other online platforms, like Etsy or eBay) while having one inventory source.
Then, routing orders to Amazon from various sales channels is simple. Businesses can submit orders individually via a bulk upload sheet or use an API integration to automatically send orders to Amazon to use their FBA inventory. Another benefit of using MCF is that businesses can take advantage of this program without committing to selling on Amazon directly.
Disadvantages of Using MCF
Since orders are fulfilled at Amazon’s centers, shipping boxes and tape will be Amazon-branded. What is inside the shipping boxes will still be the businesses’ products with their branding. Businesses will still need to handle customer service for these orders through MCF, so they will still need to invest in a customer service solution. Meanwhile, the returned products will go back to Amazon’s fulfillment centers.
Businesses are also unable to proactively communicate with their customers who order through MCF since Amazon does not make customer data available – even though they are not necessarily Amazon customers. Also, MCF is only available for orders within the U.S. If an e-commerce business plans to scale to other countries, it will need to find another 3PL that allows international shipping.
Transforming Online Retail with Amazon MCF
What it boils down to is that Amazon’s MCF program simplifies fulfillment, providing a predictable means for businesses of all sizes to scale. This enables e-commerce businesses to also not be limited to just the Amazon marketplace and pursue omnichannel selling in earnest. Check out Amazon’s MCF fees to see if this 3PL is right for your business!
