Amazon MCF, known as Multi-Channel Fulfillment, is a program of Amazon Logistics (FBA), an omni-channel logistics solution provided by Amazon Supply Chain that relies on the Amazon distribution network.
Amazon MCF definition
The outsourcing of order fulfillment to Amazon from channels outside of Amazon, including its branded websites, other e-commerce sites, and social media stores. Sellers can send all or part of their inventory to an Amazon operations center, which Amazon will help store and manage.
When a seller sends inventory to an Amazon Operations Center, Amazon will help you consolidate that inventory into an “inventory pool,” an inventory management system that allocates goods across the Amazon Operations Center network based on factors such as demand forecasts and historical sales data, and distributes them strategically so they are closer to customers.
Amazon MCF main advantages
① Amazon MCF realizes the centralized management of orders from different sales channels, which reduces the need for sellers to switch between different platforms and repeat operations, thus improving order processing efficiency.
② With Amazon MCF, merchants only pay for fulfillment and storage costs and are not charged for peak services. The allocated cost fully covers pickup, packing and shipping.
③ Through automated integration with back-end systems, a seller’s order management, inventory management, and order delivery systems can be automatically connected and synchronized, reducing a great deal of manual work and lowering the risk of human error.
④ Automated inventory management allows companies to bring products closer to customers and scale up to meet seasonal peaks without increasing fixed costs.
⑤ Amazon MCF enables sellers to expand their global customer base by extending Amazon FBA’s premium logistics services to other sales channels, including independent sites and social media stores.
⑥ Merchants have full control over customer shipping costs and can replace them with flat rate or free shipping options. The pricing system is transparent, with no additional surcharges, and full tracking codes are provided within 1 minute of the order being shipped.
⑦ Through faster delivery and efficient operations, MCF helps improve the customer shopping experience and increase customer satisfaction.
⑧ Sellers can choose whether to use Amazon’s standard boxes or ordinary boxes for order fulfillment, with flexible adjustments based on demand.
⑨ The updated Amazon Logistics warehouse capacity is based on a combination of the seller’s Inventory Performance Index (IPI) score, projected sales, the time it takes for shipments to arrive in the warehouse, and other factors.
⑩ The combination of FBA and MCF, using one account on one platform to solve the warehousing and logistics of omni-channel cross-border orders, consumers can receive the product in as fast as 1 day, increasing the rate of positive feedback and repurchase rate.
Sellers use MCF and FBA to improve faster and more accurate delivery will make it easier for sellers to win the “buy button”, promotional volume!
According to statistics, sellers who utilize both MCF and FBA can increase their chances of winning the “buy button” by an average of 15%*. They can also increase their Amazon sales by an average of 20-30%!
If you want to know more about it, click on Amazon Seller Center.
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