Amazon Multi-Channel Fulfilment Fees Explained
Nowadays online sellers have access to various fulfillment options to handle their products. One popular option is Amazon Multi-Channel Fulfillment (MCF), which allows sellers to use Amazon’s world-class logistics network to fulfill orders from other sales channels beyond Amazon. However, it is essential to understand the fees associated with this service to avoid unexpected costs and maximize profits.
In this post, we will explore everything you need to know about Multi- Channel Fulfillment fees on Amazon, including an overview of the service, a breakdown of l fees, and tips on calculating and minimizing them.
What is Amazon Multi-Channel Fulfillment?
Amazon Multi-Channel Fulfillment (MCF) is a service offered by Amazon that enables sellers to fulfill orders from other sales channels, such as their own website, eBay, or Walmart, using Amazon’s logistics network. Essentially, sellers can store their products in Amazon’s fulfillment centers, and when an order is placed on another sales channel, Amazon picks, packs, and ships the item to the customer on the seller’s behalf.
The benefits of using Amazon MCF are numerous. First and foremost, it allows sellers to take advantage of Amazon’s vast logistics network, which includes state-of-the-art fulfillment centers, advanced shipping technology, and fast delivery options. Additionally, using Amazon MCF can help sellers save time and money on fulfillment operations, allowing them to focus on other aspects of their business, such as product development and marketing.
It’s essential to note that Amazon MCF fees differ from Amazon Fulfillment by Amazon (FBA) and Amazon Pick and Pack fee. FBA is a service that allows sellers to store their products in Amazon’s fulfillment centers and sell them on Amazon’s marketplace. In contrast, Amazon MCF is designed for sellers who want to fulfill orders from other sales channels using Amazon’s logistics network.
While FBA and MCF share some similarities, such as fast and reliable shipping and access to Amazon’s customer service, they have different fee structures and requirements. Understanding these differences is important before choosing a fulfillment option for your business lest you face shipping cost increases.
Amazon Multi-Channel Fulfillment Fees
Amazon Multi-Channel Fulfillment Fees can be broken down into three main categories: fulfillment fees, storage fees, and shipping fees.
Fulfillment fees are charged per unit and cover the costs of picking, packing, and shipping the product to the customer. These fees vary based on the size tier and weight of the item, as well as the shipping method used. For example, standard-sized items shipped via standard shipping have a fulfillment fee of $3.45 per unit, while oversized items shipped via expedited shipping have a fulfillment fee of $137.32 per unit.
Storage fees are charged monthly based on the volume of space your products take up in Amazon’s fulfillment centers. These fees vary based on the time of year, with higher fees during the holiday season, and whether the products are standard-size or oversized. Standard-size products incur a monthly storage fee of $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December. Oversized products incur a monthly storage fee of $0.48 per cubic foot from January to September and $1.20 per cubic foot from October to December.
Shipping fees are charged based on the shipping method chosen by the seller, such as standard or expedited shipping. These fees vary based on the weight and size of the item, as well as the shipping destination. Amazon offers discounted shipping rates for Multi-Channel Fulfillment orders, which can help sellers save money on shipping costs.
Several factors can impact the fees associated with Amazon Multi-Channel Fulfillment, including the size and weight of the item, the shipping destination, and the shipping method chosen. Also, sellers can incur additional fees for labeling, removals, and returns processing. It’s essential to understand the various fees and factors that can impact them to accurately calculate the costs of using Amazon Multi-Channel Fulfillment and avoid unexpected costs.
How to Calculate Amazon Multi-Channel Fulfillment Fees
If you’re an Amazon seller, understanding Amazon Multi-Channel Fulfillment fees is critical to your success. We encourage you to learn more about Amazon Multi-Channel Fulfillment and its associated fees to help you make informed decisions and optimize your sales strategy. And that begins with knowing how to calculate MCF fees. Don’t worry though, there is a method to doing it right.
Calculating Amazon Multi-Channel Fulfillment fees can be a complex process, but it’s important to understand how to do it accurately to avoid unexpected costs. Here’s a step-by-step guide on how to calculate the fees for a specific product:
- Determine the size and weight of the product.
- Use the Amazon MCF Fee Preview tool to estimate the fulfillment fees for the product based on its size and weight. This tool allows you to select the product’s category, shipping method, and destination to get an accurate estimate of the fees.
- Use the Amazon MCF Revenue Calculator to estimate the product’s shipping fees and commission fees based on its category, price, and shipping destination.
- Add the estimated fulfillment, shipping, and commission fees together to get the total cost of using Amazon MCF for the product.
Here are some examples of how to calculate the fees for different product types:
Example 1: Standard-sized t-shirt priced at $15 with standard shipping to a US address
- Fulfillment fee: $3.45
- Shipping fee: $3.09
- Commission fee: $2.25
- Total cost: $8.79
Example 2: Oversized book priced at $25 with expedited shipping to a UK address
- Fulfillment fee: $7.92
- Shipping fee: $19.99
- Commission fee: $6.25
- Total cost: $34.16
To minimize fulfillment fees, here are some tips:
- Optimize your packaging to minimize the size and weight of your products.
- Use Amazon’s free FBA Inventory Placement service to consolidate your products in one fulfillment center and reduce shipping costs.
- Monitor your inventory levels and avoid long-term storage fees by regularly replenishing popular products and removing slow-moving items.
- Consider using Amazon’s Multi-Channel Fulfillment for high-volume sales channels and a different fulfillment option for lower-volume channels to maximize cost-effectiveness.
And that’s it. You will now be able to do complex calculations for your multi- unit orders. Online merchants can even make use of automated tools that can do it all for you.
Frequently Asked Questions
How is the storage fee calculated for Amazon Multi-Channel Fulfillment?
The storage fee is calculated based on the volume (in cubic feet) of the space your inventory occupies in Amazon’s fulfillment centers. Standard-size items are charged a monthly storage fee of $0.75 per cubic foot, while oversized items are charged a monthly storage fee of $0.48 per cubic foot.
How are the shipping fees calculated for Amazon Multi-Channel Fulfillment?
The shipping fees for Amazon Multi-Channel Fulfillment are calculated based on the weight and dimensions of your product, the destination, and the shipping method. You can use Amazon’s FBA Revenue Calculator to estimate the shipping fees for your product.
Can I use my own carrier for Amazon Multi-Channel Fulfillment?
Yes, you can use your own carrier for Amazon Multi-Channel Fulfillment, but you will need to provide Amazon with the carrier name, tracking number, and any other required information. Note that using your own carrier may impact your shipping fees and delivery times.
Are there any additional fees for multi-channel orders?
Yes, if you fulfill orders from other sales channels using Amazon Multi- Channel Fulfillment, you may be charged an additional multi-channel fulfillment fee. This fee is in addition to the standard Amazon Multi-Channel Fulfillment fees and varies based on the item size and destination.
Can I change the fulfillment method for a product after it has been
listed?
Yes, you can change the fulfillment method for a product after it has been listed, but it may impact your fees and delivery times. If you switch from Amazon Multi-Channel Fulfillment to another fulfillment method, you may incur a removal fee for any remaining inventory in Amazon’s fulfillment centers. If you switch from another fulfillment method to Amazon Multi-Channel Fulfillment, you may incur a storage fee for the inventory you send to Amazon’s fulfillment centers.
Conclusion
Understanding Amazon Multi-Channel Fulfillment Fees is essential for any seller who wants to maximize profits and minimize costs. In this post, we defined Amazon Multi-Channel Fulfillment and discussed its benefits, differences from Amazon FBA, and the breakdown of fees associated with it. We also provided a step-by-step guide to calculating the fees, examples of how to calculate fees for different product types, tips for minimizing fees, and common questions and scenarios related to fees.
It’s crucial to review and understand Amazon Multi-Channel Fulfillment fees and policies before listing your products to avoid any unexpected fees that can impact your profits. Regularly monitoring your inventory levels, optimizing your packaging, and choosing cost-effective shipping methods can also help you minimize your costs.
