Amazon is significantly expanding its Multi-Channel Fulfillment (MCF) service, now enabling merchants to leverage Amazon's vast logistics network for sales made on platforms like Shopify, Walmart, and Shein. This strategic move aims to provide sellers with a unified inventory pool across various sales channels, reducing stagnant stock and improving delivery efficiency.
Key Takeaways
- Amazon's Multi-Channel Fulfillment now supports sales from Walmart, with Shopify integration live and Shein support coming later this year.
- The expansion allows sellers to manage a single inventory pool across multiple sales channels, leading to fewer stockouts and increased inventory turnover.
- Amazon is also introducing new services like Global Warehousing and Distribution and enhancing its Global Logistics capabilities.
- Generative AI is being implemented to streamline and accelerate customs clearance processes for sellers.
Enhanced Multi-Channel Fulfillment
Dharmesh Mehta, VP of worldwide selling partner services at Amazon, announced the expansion, highlighting that MCF already supports orders from Walmart and is enhancing its partnership with Shopify. The service will extend to Shein later this year. MCF handles the picking, packing, and delivery operations for sales across various channels, including Etsy, Temu, and TikTok Shop. This integration allows brands to reach customers wherever they shop, utilizing Amazon's fulfillment network for deliveries.
Mehta noted that when MCF is used in conjunction with Fulfillment by Amazon (FBA), sellers experience, on average, 19% fewer out-of-stock rates and a 12% increase in inventory turnover. This unified approach helps sellers maintain less inventory and ensures products are available to customers more consistently.
New Supply Chain Ecosystem Features
Beyond MCF, Amazon is rolling out several other upgrades to its supply chain offerings:
- Global Warehousing and Distribution: This new service will allow sellers to store products in bulk at lower costs near manufacturing sites. Goods can then be shipped to destination countries as needed. Amazon plans to launch these facilities in major manufacturing locations globally, including China, Vietnam, Europe, Indonesia, and India, with initial launches expected later this year.
- Amazon Global Logistics (AGL): Amazon is expanding direct shipping routes from manufacturing hubs to popular destination countries. AGL currently offers ocean and air freight from China and Hong Kong to several countries in North America and Europe. By the end of 2026, AGL aims to cover 96% of the inbound volume sent to FBA, promising faster, more reliable shipping with fewer handoffs.
- GenAI Customs Clearance: Amazon is leveraging generative AI to simplify and expedite customs clearance. The technology pre-populates required fields, reuses information across documents, and flags potential errors, helping sellers reduce customs paperwork time by over 50%. The AI-generated information is presented to sellers for verification and modification before final submission.
These advancements underscore Amazon's commitment to building a comprehensive end-to-end supply chain ecosystem for its sellers, aiming to improve efficiency, reduce costs, and enhance the customer delivery experience across all sales channels.
Sources
- Amazon adds Walmart, Shopify, Shein to Multi-Channel Fulfillment coverage, Supply Chain Dive.
