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Multi-Channel Fulfillment (MCF) is the method by which sellers can sell items through various sales channels and have Amazon handle the packaging and shipping aspects for them. Any items that are stored at an Amazon fulfillment center can be sold through this process assuming that fulfillment center is subject to this service.
Multi-Channel Fulfillment should not be confused with Fulfillment by Amazon (FBA) services, though both appear to have similar results, as these are two entirely separate services that a seller can choose from.
Fulfillment by Amazon orders are made by buyers on the Amazon marketplace, while Multi-Channel Fulfillment orders are placed on third-party websites not connected to Amazon. This is the major and important differentiator that separates the two services.
Multi-Channel Fulfillment is a convenient option for sellers who already have their own active websites because it allows them to utilize the expedience, experience, and corporate-level business dealings of Amazon to store and ship products all over the world. This service is available for both individual orders and for bulk listings.
In order to take advantage of the Multi-Channel Fulfillment services, the seller must have a Fulfillment by Amazon account. When a Multi-Channel Fulfillment order is processed, the order will be billed to the credit card attached to the seller’s Amazon account. Alternatively, the amount can be subtracted from the total funds being transferred if there are any such funds at the time of the transactions.
Professional seller account holders can also use the Multi-Channel Fulfillment service without any Amazon listings involvement. This is done by following the steps outlined below:
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When an order is placed through the alternate sales channel, the seller must use a web form in order to inform Amazon of the arrangement.
The shipping process is almost completely subject to the buyer’s preferences and not the seller’s. In other words, Multi-Channel Fulfillment provides three shipping options for the buyer to choose from, and the seller merely passes the chosen information along to Amazon for fulfillment. The three options are:
Note: Shipping address cannot be changed after the order has already left the fulfillment center. If the buyer has provided incorrect information, it will have to be dealt with personally between the buyer and the seller.
While the shipping method is solely within the parameters of the buyer, the shipping aspect that the seller is involved in is the packing slip. Sellers have the option of sending individualized branded packing slips to each of their customers at the time of purchase. This beta service is meant to help businesses personalize orders to increase exposure. The name of the company, as well as a small informational section, can be added to the packing slip also. Once again, this is to give these Multi-Channel Fulfillment orders a more personalized appearance than the standard Amazon shipments.
While all of the shipping and packaging is done by Amazon for a Multi-Channel Fulfillment order, all returns are handled by the seller. It is up to the seller’s discretion whether or not to honor a return, assuming all conditions and terms have been followed and met according to Amazon standards and the Participation Agreement, and within the seller’s responsibility to process these claims accordingly.
A Multi-Channel Fulfillment order can only be cancelled within the first 15 minutes after it has been placed, while the status of the order is in the Planning stages. After this, Amazon reserves the right to decline a cancelation.
To cancel an order:
Canceling an order for an item that is out of stock is handled differently. If an order cannot be fulfilled because it is not in stock, the status will be labeled as Unfulfillable. The order will stay that way until the item has been restocked, at which point a new order can be placed and will be fulfilled accordingly.
In a Feedvisor webinar, Amazon product manager Sunjay Josyula outlined the benefits of using MCF and the fee changes that Amazon rolled out that may tempt you try it. A summary is available below:
All MCF shipping prices were reduced, and Amazon revealed significant drops in Expedited and Priority shipping, up to 32%.
The Order Handling, Pick & Pack, and Weight Handling fees were consolidated into a single per-unit fee. In addition, size and weight calculations were aligned with the fees for FBA.
Discounts are now offered for multi-unit orders. The more you send, the greater the discount per item.
Here is an example of the difference in prices that now see: Now, a standard-size mobile device case will ship for $7.90 with Expedited Shipping, compared to $9.05 previously. If shipped Priority, it will cost $12.80, compared to $17.00 previously.
Larger items now realize even more savings. Shipping a small oversize baby cot with Priority Shipping now costs $23.92, compared to the $35.00 it would have cost before these updates went into effect. 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 fees for Multi-Channel Fulfillment, click here.