How to Use Amazon FBA Multi-Channel Fulfillment (MCF) as a Third-Party Seller: A Complete Guide

For third-party sellers, managing fulfillment across multiple platforms can be time-consuming and costly. Enter Amazon FBA Multi-Channel Fulfillment (MCF)—a powerful service that allows you to leverage Amazon’s fulfillment network to manage orders not only from Amazon but also from other sales channels like your website, eBay, Shopify, and more. By centralizing your fulfillment with Amazon, you can streamline logistics, save time, and ensure fast, reliable shipping for all your customers.

In this post, we’ll explore what Amazon FBA Multi-Channel Fulfillment is, how it works, the benefits for third-party sellers, and step-by-step instructions on setting it up. Let’s dive in.

What is Amazon FBA Multi-Channel Fulfillment?

Amazon Multi-Channel Fulfillment (MCF) allows you to fulfill orders from multiple sales channels using Amazon’s fulfillment network. While FBA is primarily known for fulfilling Amazon orders, MCF enables sellers to store inventory in Amazon warehouses and fulfill non-Amazon orders, such as those from your own website or third-party platforms like Shopify, eBay, or Walmart.

With MCF, Amazon takes care of picking, packing, and shipping your orders to customers across the country or internationally, just like it does for Amazon orders. The key difference is that MCF fulfills orders placed outside of Amazon, providing flexibility and control for multi-channel sellers.

Benefits of Amazon MCF for Third-Party Sellers

Using Amazon’s fulfillment network to handle orders from multiple platforms offers several key benefits:

  1. Centralized Inventory Management: Manage all your inventory in one place, regardless of the sales channel. This reduces the complexity of managing stock across multiple platforms and helps avoid issues like overselling or stockouts.
  2. Fast and Reliable Shipping: Amazon is known for its fast and reliable shipping services. By using MCF, you can offer your customers the same high standard of fulfillment they expect from Amazon, whether they shop on your website or another platform.
  3. Improved Efficiency: With Amazon handling the logistics, you can focus on other aspects of your business, such as marketing and product development. This can significantly reduce the time spent on packing, shipping, and managing returns.
  4. Competitive Advantage: Offering fast shipping and seamless fulfillment through MCF can give you a competitive edge over sellers who handle fulfillment in-house. Customers expect fast delivery, and Amazon’s network allows you to meet (and exceed) those expectations.
  5. Scalability: As your business grows, MCF can scale with you. Whether you’re shipping a few orders per day or hundreds, Amazon’s fulfillment network can handle the demand without additional logistical headaches on your end.

Step-by-Step Guide to Setting Up Amazon FBA Multi-Channel Fulfillment

Here’s how you can start using MCF as a third-party seller:

Step 1: Set Up FBA in Seller Central

Before you can use MCF, you need to enroll in Fulfillment by Amazon (FBA) through your Seller Central account.

  1. Log in to Seller Central.
  2. Navigate to Settings > Fulfillment by Amazon.
  3. Enable FBA for your account and select the product categories you plan to fulfill through Amazon’s network.

Step 2: Create FBA Shipments

Once your FBA account is active, the next step is to send your inventory to Amazon’s fulfillment centers. This is a critical part of the MCF setup process because Amazon needs to store your products before it can fulfill any orders.

  1. Prepare Your Products for Shipment: Follow Amazon’s FBA packaging guidelines, including labeling each product with the appropriate FNSKU barcode.
  2. Create a Shipping Plan: Use Seller Central to create a shipping plan, specifying the products and quantities you’re sending to Amazon warehouses.
  3. Ship to Amazon Fulfillment Centers: Send your products to the designated Amazon fulfillment centers using Amazon’s partnered carrier or your preferred shipping service.

Step 3: Link Your Sales Channels

To start fulfilling orders from other sales channels, you need to link your e-commerce platforms (e.g., Shopify, WooCommerce, eBay) to Amazon’s MCF system.

  1. Integrate Your Sales Channels: Use a third-party app (e.g., Shopify’s Amazon Fulfillment Service or tools like ShipStation) to connect your external sales channels with Amazon’s MCF network. These apps sync orders and send fulfillment requests to Amazon automatically.
  2. Manual Order Creation: Alternatively, you can manually create MCF orders in Seller Central by navigating to Orders > Create MCF Order, then entering the order and shipping details.

Step 4: Configure Shipping Options

Amazon offers multiple shipping speeds for MCF, including Standard, Expedited, and Priority shipping. Depending on your customers’ needs and your shipping policies, you can choose the shipping speeds you want to offer on your external sales channels.

  1. Set Shipping Speeds in Seller Central: Configure your preferred shipping methods in Seller Central under the MCF settings.
  2. Adjust Shipping Rates on Other Platforms: Make sure your non-Amazon platforms (e.g., Shopify, eBay) reflect the appropriate shipping speeds and costs.

Step 5: Monitor Inventory and Manage Orders

Once MCF is active and integrated with your external sales channels, Amazon will automatically fulfill orders from those platforms as they come in. Here’s how to manage the process:

  1. Monitor Inventory Levels: Use Amazon’s Inventory Dashboard in Seller Central to monitor stock levels and restock products as needed.
  2. Manage Returns and Customer Service: With MCF, Amazon handles returns for your non-Amazon orders. You can also track customer service requests related to fulfillment.

Costs and Fees Associated with MCF

While MCF offers immense value, there are specific costs you need to consider:

  1. Fulfillment Fees: MCF fulfillment fees are charged based on the size and weight of each item. These fees cover picking, packing, and shipping the order. Unlike FBA, MCF fulfillment fees are not subsidized by Amazon Prime benefits, so expect slightly higher rates.
  2. Storage Fees: Just like FBA, MCF sellers incur monthly storage fees for keeping their inventory in Amazon’s warehouses. These fees vary based on the time of year (higher during Q4) and the volume of inventory stored.
  3. Additional Costs: Fees for long-term storage, removal orders, and returns processing may apply depending on your inventory management and product sales volume.

To calculate your costs, you can use Amazon’s FBA Fee Calculator, which provides a detailed breakdown of storage, fulfillment, and other potential fees.

Best Practices for Optimizing MCF as a Third-Party Seller

To get the most out of Amazon’s Multi-Channel Fulfillment, follow these best practices:

  1. Consolidate Inventory: Centralize your inventory in Amazon’s fulfillment centers to reduce the complexity of managing stock across multiple platforms.
  2. Leverage Fast Shipping: Take advantage of Amazon’s fast shipping options to offer competitive shipping speeds on your external sales channels.
  3. Track Performance: Regularly monitor inventory levels and performance metrics to ensure you’re not overstocking slow-moving items or running out of popular products.
  4. Monitor Costs: Be mindful of fees like long-term storage and removal fees, and adjust your inventory levels accordingly to minimize unnecessary costs.

Conclusion: Is MCF Right for Your Business?

For third-party sellers looking to expand beyond Amazon, Amazon FBA Multi-Channel Fulfillment is a valuable tool that centralizes fulfillment, reduces logistical headaches, and offers fast, reliable shipping across all sales channels. While there are costs associated with the service, the benefits—such as streamlined operations and customer satisfaction—often outweigh the fees, making it a smart choice for scaling your e-commerce business.

By implementing MCF, you can focus on growing your business, improving your product offerings, and expanding your reach across multiple platforms while leaving the fulfillment logistics to Amazon.

If you’re looking to scale your e-commerce operations and need help managing your fulfillment strategy, Marketplace Valet can assist you with expert solutions to optimize your Amazon fulfillment and grow your business. Contact us today to get started!

FAQs:

  1. Can MCF fulfill international orders?
    Yes, Amazon MCF offers international shipping options, allowing you to fulfill orders for customers outside of the U.S.
  2. Do MCF orders qualify for Amazon Prime?
    No, only orders placed on Amazon qualify for Prime benefits. However, MCF orders still benefit from Amazon’s fast shipping speeds.
  3. How are returns handled for MCF orders?
    Amazon manages returns for MCF orders, providing customers with a seamless return experience similar to Amazon’s own returns process.

How to Make Money on Amazon With Multi-Channel Fulfillment

multi-channel fulfillment

 

The Internet is an endless sea of information, opinions, and sales–especially sales.

Emerging as the grand ship that can navigate all waters is, of course, Amazon.

Amazon has grown so vast that it is now the largest e-commerce retailer.

It is also currently one of the biggest search engines–and it’s still growing.

Try typing anything into Google.

“Tamagotchi,” for example.  Or “video games” or “guitar.”

If it’s a sellable good, you’re going to see an Amazon link on the first page of results.

Amazon’s just that powerful.

Luckily, it offers multi-channel fulfillment to the companies that use it to sell their wares.

Nowadays, exposure on Amazon is extremely valuable, and it’s no wonder why.

As such, companies need to take advantage of the opportunities that the marketplace site offers.

 

How to make the most of Amazon’s multi-channel fulfillment opportunity

First, you need to understand Amazon’s FBA policy.

“FBA?  What’s that?” you’re probably asking yourself.

“FBA” is short for “Fulfilled by Amazon.”

Essentially, it’s a status given to a company selling on Amazon.

That status guarantees customers that buying from you will be like buying from Amazon.

An item from you counts towards their “buy X amount of items and get free shipping” policy.

 

The perks of being Prime

And more importantly, an item from you is eligible for their Prime program.

Amazon Prime acts as a kind of “subscription.”

Customers pay an up-front fee but then get a bunch of benefits regular customers don’t.

For example: free two-day shipping.  

That’s something only someone who participates in their Prime program gets.

Imagine a customer seeing one of your items listed as “Prime.”

Imagine how tempted they’d be to buy it.

Ah, the beauty of multi-channel fulfillment!

 

Reduced shipping and handling costs

A company that sells through Amazon also gets a huge discount on shipping and handling charges.

When you partner with Amazon, you stop being rivals with it.

You stop fighting it for pageviews and sales.

You learn to use it to grow your business.

And here’s how to start:

 

Save up some money

Multi-channel fulfillment selling through Amazon may be cost-efficient, but it still costs!

Goods, shipping supplies, account fees–these are all things you’ll need to spend money on.

It’s a good idea to save a little bit of money ($500.00 should do) before diving right into any e-commerce.

 

Sign up for a Professional account

Professional accounts on Amazon are targeted at businesses.

This kind of account is how businesses get access to Prime status.

They’re $39.99 a month, but with a Professional account, you don’t have to pay a listing fee.

Meanwhile, people with regular accounts are charged a buck per listing.

So if you sell 40 items a month, you’re breaking even with the cost of regular listings.

And if you sell over 40, you’re actually saving money.

So is the Professional account worth it?

Absolutely!

 

Determine what you’ll list on Amazon

Go through what you have and pick out what you feel would sell the best.

Once you’ve settled on your items, send Amazon the item information and suggested price.

(It’s a good idea to set the price somewhere around the price Amazon is selling it for.)

Make sure Amazon accepts the goods that you want to sell through it.

Some items, such as food and make-up, have more stringent policies.

 

Choose what’s on sale to sell

Otherwise, a good of thumb is “choose what’s on sale to sell.”

Your local mall might be selling Larry’s Lazy Leather Loafers for $4.00 to get rid of them.

Meanwhile, Amazon might be selling the same pair of loafers for $30.00.  

If you buy the loafers for $4.00, sell them for around $30.00, and account for shipping fees to Amazon…

Well, that’s about $24.00 that you just made off of $4.00 loafers!

You can always check Amazon’s FBA Revenue Calculator if you’re unsure.

Also: it’s best to try only a few items at a time–to make sure you get the process.

Multi-channel fulfillments involve navigating, well, multiple channels, so it can be a bit confusing at first.

But don’t worry: you’ll get this multi-channel fulfillment thing down in no time!

 

Ship the items to Amazon

A huge advantage to multi-channel fulfillment through Amazon is shipping and storage.

If Amazon is storing your items, they’ll ship them, too.

Which means you don’t have to deal with the hassle of shipping the items yourself!

Amazon’s multi-channel fulfillment will take care of them for you!

One downside to storing via Amazon, though, is that your items need to sell, and sell quickly.

If not, they end up waiting in Amazon’s warehouse.

If that happens and they set there for too long, Amazon will charge you a fee for the storage space.

Either that, or you’ll end up storing the items yourself.

That’s not too bad, as long as the items are small and you have the space.

The good news is, whether or not you store at Amazon doesn’t affect whether or not you sell through it.

You can store your items and ship them yourself and still get all the perks of selling through Amazon.

 

Buy shipping supplies

Regardless of where you store items, you’ll need to buy shipping supplies.

If you’re not storing through Amazon, you’ll be spending quite a bit more on them.

Keep that in mind when creating your business’s budget.

 

Talk with others who’ve participated in Amazon’s multi-channel fulfillment program

Taking part in a multi-channel fulfillment can seem daunting and challenging at first.

But there’s no need to worry!  Loads of companies have done it!

Google forums.  Chat up your fellow businessmen and -women.

Find people who’ve also partaken in Amazon’s FBA.

They can provide you with advice and tips for making the most of your selling experience on Amazon.

They can also give suggestions when you’re not sure of something or have a question.

Plus, talking with other professionals opens the flood gates and lets in the networking.

And we all know how important networking is nowadays!

 

The Bottom Line

Now you have all the basic tips and tricks you need to get started in Amazon’s multi-channel fulfillment program.

Get out there and sell, sell, sell! Your business can only gain from a partnership with Amazon!