Amazon Broadens Fulfillment Reach to Walmart, Shopify, and Shein

Amazon is significantly expanding its Multi-Channel Fulfillment (MCF) service, now extending its powerful logistics network to support sales on major platforms like Walmart, Shopify, and Shein. This strategic move allows third-party sellers to leverage Amazon's vast fulfillment infrastructure for orders originating from these diverse sales channels, aiming to streamline inventory management and enhance delivery efficiency across the e-commerce landscape.

Key Takeaways

Amazon's Multi-Channel Fulfillment now supports sales from Walmart, Shopify, and soon Shein.
This expansion allows sellers to manage a single inventory pool across multiple sales channels.
New services like Global Warehousing and Distribution and AI-powered customs clearance are also being introduced.
The goal is to create a comprehensive end-to-end supply chain ecosystem for sellers.

Expanding Fulfillment Capabilities

Dharmesh Mehta, VP of worldwide selling partner services at Amazon, announced the expansion, highlighting that MCF will now manage picking, packing, and delivery for orders from Walmart, with Shopify support growing and Shein integration planned for later this year. Previously, MCF supported channels like Etsy, Temu, and TikTok Shop. This integration enables sellers to maintain a unified inventory across all their sales platforms, reducing the amount of stagnant stock in warehouses and ensuring products are available wherever customers choose to shop.

Mehta noted that combining MCF with Fulfillment by Amazon (FBA) has led to an average of 19% fewer out-of-stock rates and a 12% increase in inventory turnover for sellers. This expansion is part of Amazon's broader strategy to offer an end-to-end supply chain ecosystem.

New Global Warehousing and Distribution Service

Amazon is also launching its Global Warehousing and Distribution service. This new offering will enable sellers to store products in bulk at lower costs closer to their manufacturing sites. Goods can then be dispatched to destination countries as needed. This service builds upon Amazon's existing warehousing and global logistics capabilities. Amazon plans to establish facilities in major manufacturing locations, with initial launches expected in China and Vietnam later this year, followed by expansion into Europe, Indonesia, and India.

Enhancements to Amazon Global Logistics

The e-commerce giant is continuing to develop direct shipping routes connecting manufacturing hubs with popular destination countries. Amazon Global Logistics (AGL) currently provides ocean cargo and air freight from China and Hong Kong to several countries, including the U.S., UK, France, Germany, Italy, and Spain. 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, ultimately speeding up inventory availability for Prime delivery.

Generative AI for Customs Clearance

Amazon is leveraging generative artificial intelligence to simplify and accelerate customs clearance processes. This AI-powered service will pre-populate required fields, such as product classification, and reuse information across documents. It also helps flag potential errors, reducing delays. Early results indicate that sellers have reduced customs paperwork time by over 50%. The AI generates information that sellers can review and verify, allowing for corrections before final submission.