Good news, Amazon sellers: Those of you who use Amazon to fulfill orders on multiple channels will soon see a significant dip in fees.
What is Amazon’s Multi-Channel Fulfillment (MCF) Program?
For those of you who are not familiar with MCF, the program provides sellers the option of shipping to all of their channels through Amazon. In other words, all merchandise is stored at an Amazon facility, and Amazon then fulfills orders placed through channels such as Shopify and your own website.
In a recent Feedvisor webinar, Amazon product manager Sunjay Josyula outlined the benefits of using MCF and the new fee changes that may tempt you try it.
What Are the New MCF Fee Changes?
Here’s a quick summary of the changes being made to US fees, which go into effect this August 30:
Reduced 2-Day and 1-Day Shipping
All MCF shipping prices will be reduced, but you’ll be able to see significant drops in Expedited and Priority shipping, which will drop by as much as 15% to 32%.
The Order Handling, Pick & Pack, and Weight Handling fees will be consolidated into a single per-unit fee. In addition, size and weight calculations will be aligned with the fees for FBA.
Discounted Fees for Multi-Unit Orders
Discounts will be offered for multi-unit orders. The more you send, the greater the discount per item.
How Much Will I Actually Save?
Here’s an example of the difference in prices that you’ll see: After August 30, a standard-size mobile device case will ship for $7.90 with Expedited Shipping, compared to $9.05 prior to that time. If shipped Priority, it will cost $12.80, compared to $17.00 before August 30.
Larger items will realize even more savings. Shipping a small oversize baby cot with Priority Shipping will cost $23.92, compared to the $35.00 it would have cost before August 30.
Why is Amazon Doing This?
Josyula says that Amazon expects that customers are moving toward the expectation of 2-day and next-day shipping, and the reduced fees are a nod to that trend.
“We’re really trying to simplify fees for sellers,” he explained in his webinar. “For a while, MCF fees were actually structured differently than FBA…. In a sense, it was a complicated math equation that we are now trying to simplify for sellers by having a single per-unit fee.”
For more information about Amazon’s new MCF fee changes, click here.
Want to learn about how Feedvisor can help you reprice your inventory across multiple channels? Schedule a demo here.