Amazon multi channel fulfillment vs FBA multi channel fulfillment
If you have been selling products online for quite some time now, or you wish to sell products online, you might have come across the term Fulfillment-by-Amazon (FBA) program or an Amazon multi channel fulfillment. Here is everything you need to know about the two.
Amazon Multi-Channel Fulfillment (MCF) program is one of the most familiar fulfillment options offered by Amazon to the sellers. As a seller, you will be able to store your inventory at the Amazon warehouses. Amazon fulfillment experts will then take care of the fulfillment for your brand across selected channels. For shipping, the Amazon Multi-Channel Fulfillment (MCF) program uses a different type of shipping speeds along with the usual 2 day shipping service.
On the other hand, Fulfillment by Amazon (FBA), fulfillment service is offered exclusively for Prime orders from the Amazon marketplace. The fulfillment by amazon only offers 2 day delivery service.
Using Amazon’s Multi-Channel Fulfillment program has its own advantages over the Fulfillment by Amazon program but it does come at a cost.
Here are the major differences between the Amazon Multi-Channel Fulfillment (MCF) and Fulfillment by Amazon. These differences will help you in making an informed decision on what to choose for your products.
Factors
Fulfillment by Amazon Program
Multi-Channel Fulfillment Program
Fees
The fees in the FBA program depend on the size and weight of the product per unit.
In addition, you will have shipping, storage and handling fees.
Also, there will 15% fee on sales
Amazon multi-channel fulfillment fees include FBA fees on all the prime orders of Amazon and additional fees for the orders that are placed on websites other than Amazon.
The fees levied will depend on the order size and weight.
Shipping service
As mentioned above FBA offers the familiar 2 day shipping as well as next day shipping
MCF offers different shipping options for the sellers. From 3 to 5 day shipping, 2 day shipping to next day shipping. All options are available.
Channel
Amazon marketplace
As a seller, your website as well as other websites
Working of FBA multi channel fulfillment
Send the products to Amazon.
Store the products in Amazon warehouses.
When your customer places an order for one of the products, the team at Amazon picks an order, packs it, ships and tracks it for you.
Amazon will also take care of refunds and returns.
Advantages of FBA
● Effortless logistics and shipping: based on their experience, FBA allows you to outsource the complete process
● Discounted shipping rates: Amazon has contracts with major shipping carriers which give them amazing discounts on shipping costs. These discounts are passed on to sellers in the form of reasonable shipping prices while sending your inventories to Amazon
● Management of returns: Managing returns can be tiresome. FBA offers the benefit of handing over the responsibility to Amazon. You do not have to worry about anything
● Better management of customer service: On choosing an FBA program your customers will receive the best customer service through the Amazon customer service team
Advantages of Amazon Multi-Channel Fulfillment
● Amazon offers the best Multi-Channel Fulfillment in terms of inventory efficiency. As a seller, you can leave your stock with Amazon, everything in one place, and fulfill both Amazon as well as non-Amazon orders with a single dashboard. You will be able to track orders placed on other websites as well as Amazon through a Seller Central platform. Also, your inventory will be stored with just one provider
● Along with an integrated tracking system, multichannel also offers simple pricing that is easy to understand. Calculate your storage fees, fulfillment fees from Amazon tables, and simply estimate the expenses. This will compute your Amazon multi channel fulfillment fees
● Also, Amazon is a reliable partner with a vast network of resources. Since Amazon operates in almost every city, the service does come with credibility
Conclusion
Amazon MCF definitely provides great benefits but has restrictions on branding as well as items. Also, the higher fees involved in the program may not be a cost effective choice for products that do not qualify. Depending on the products you want to sell online and the budget you can select the programs beneficial for your business.