Multi Channel Fulfillment Fee Updates/Program Changes

July 14th, 2021

What is Multi-Channel Fulfillment (MCF)?
How Does it Multi-Channel Fulfillment Work?

With Amazon dominating the eCommerce sector, the term “multi-channel fulfillment” is largely associated with the retail giant. Multi-Channel Fulfillment (MCF) is a program in which Amazon handles the storage, fulfillment, and shipping of a seller's products sold on a variety of online channels (not just Amazon exclusively). Through MCF you are limited to only selling media products (books, movies, video and DVD) internationally.

This program allows a seller to centralize resources while branching out to multiple eCommerce markets. Not surprisingly, MCF is one of most attractive solutions that sellers are faced with because it promises to alleviate the burdens that multi-channel eCommerce can pose.

You can now signup to be put on the waitlist for the beta test of the unbranded packaging and international shipping features.

Amazon Multi-Channel Fulfillment vs. Amazon FBA

As we discussed above, Amazon Multi-Channel Fulfillment is related to Fulfillment by Amazon (FBA), as Amazon takes charge of storage, fulfillment, and shipping for both programs.

One of the main differences is that Amazon MCF is specifically open to products that are being sold on online channels outside of Amazon. Whereas, FBA is specifically intended for items that are being sold on Amazon directly.

One of the biggest upsides of using Amazon’s MCF program is the sheer convenience of consolidating resources and having one destination for monitoring inventory, sales, and fulfillment.

If you are already using FBA, then joining the MCF program is particularly convenient as you can simply send MCF and FBA inventory to Amazon at the same time without worrying about separate shipments for each program. However, being an FBA seller is by no means a prerequisite for using the program, as MCF is available with or without the Fulfillment by Amazon (FBA) service.

Go International with MCF

If you are selling internationally or planning to sell internationally, then Multi-channel Fulfillment can be a powerful resource for your business. MCF orders can be exported to the following European countries supported by FBA:

United Kingdom, France, Belgium, Luxembourg, Netherlands, Spain, Italy, Portugal, Ireland, Austria, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, Sweden, Argentina, Australia, Bahrain, Bermuda, Brazil, Canada, Chile, China, Colombia, Costa Rica, Ecuador, Egypt, Guadeloupe, Hong Kong, Iceland, India, Indonesia, Israel, Japan, Jordan, Kazakhstan, Kenya, Korea, Kuwait, Liechtenstein, Macao, Malaysia, Mexico New Zealand, Nigeria, Norway, Oman, Panama, Peru, Philippines, Saudi Arabia, Serbia, Singapore, South Africa, Switzerland, Taiwan, Thailand, Trinidad & Tobago, United Arab Emirates, United States, Uruguay, Venezuela.

MCF is only available for media products (books, movies, video and DVD) internationally. It's important to also note that export orders have separate fulfillment fees.

2021 Updates to Amazon’s Multi-Channel Fulfillment Fees and Program Changes

In December 2020, Amazon postponed the annual fee adjustments and absorbed costs to help sellers get through the challenging winter. Beginning on June 1, 2021, Amazon’s US Multi-Channel Fulfillment (MCF) fee adjustment will take place as previously planned.

You can visit Amazon’s 2021 US Multi-Channel Fulfillment fee changes page which outlines these new changes, which include the following:

  • Amazon will implement moderate increases in fulfillment fees (about 3% on average) to reflect changing fulfillment, transportation, and storage costs. This increase is in line with the industry average increases for fulfillment services.
  • Amazon is also adding the option to block orders from being shipped by Amazon Logistics, for a 5% surcharge. Because sales channels like eBay and Walmart prohibit the use of Amazon Logistics, you will be able to block this shipping method at the account level within your FBA settings or for individual orders.
  • Amazon is aligning most MCF product size tiers to the Fulfillment by Amazon tiers and adding a new small standard size: 2 oz or less tier.
  • Amazon will remove expedited and priority shipping speeds on large oversize and special oversize products.

In other exciting news, Amazon has also recently launched many of the top-requested MCF features:

  • On-time shipping for customer orders has been improved and standard-speed orders for in-stock inventory are now going to be shipped out within two business days of order creation. For expedited and priority-speed orders, you can expect them to be shipped out within one business day. For more information, go to Amazon’s MCF Help page.
  • Amazon has also added the ability to track through AfterShip to ensure Amazon Logistics shipments are trackable on popular channels such as Etsy and Wish. Tracking numbers can be accessed on your Seller Central order details pages. You can have the number sent to the customer automatically if you provide their email address when you submit the customer order.
  • Amazon will use your MCF volume to calculate your Inventory Performance Index (IPI) score, which may help you qualify for unlimited storage. To view your IPI score, go to your Inventory Performance dashboard.
  • You can now sign up via Seller Central to be put on the waitlist for the beta test of the unbranded packaging and international shipping features.
    • Unbranded packaging: Allows you to shop orders in unbranded packaging. Join the waitlist.
    • International packaging: Allows you to ship media and non-media orders using your US inventory to over 100 countries. Join the waitlist.

Are you ready to explore more options for selling on and beyond Amazon? Let our Amazon experts lead the way as you expand your selling network utilizing Multi-Channel Fulfillment. Get started with a free consultation today.