Amazon is significantly expanding its Multi-Channel Fulfillment (MCF) service, now enabling merchants to leverage Amazon's vast logistics network for sales made on Walmart, Shopify, and Shein. This strategic move aims to provide sellers with a unified inventory pool across multiple sales channels, reducing stagnant stock and enhancing delivery efficiency.
Key Takeaways
- Amazon's Multi-Channel Fulfillment now supports sales from Walmart, with Shopify and Shein integration coming soon.
- The expansion allows sellers to manage a single inventory pool across various e-commerce platforms.
- New services like Global Warehousing and Distribution and AI-powered customs clearance are also being introduced.
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 will soon include Shein later this year, building on existing partnerships with platforms like Etsy, Temu, and TikTok Shop. This integration allows sellers to utilize Amazon's fulfillment infrastructure for orders originating from these external marketplaces. Mehta emphasized that this helps brands reach customers wherever they shop, relying on Amazon's network for reliable delivery. When MCF is used in conjunction with Fulfillment by Amazon (FBA), sellers have reported approximately 19% fewer out-of-stock instances and a 12% increase in inventory turnover.
New Supply Chain Ecosystem Features
Beyond MCF, Amazon is rolling out several other supply chain enhancements. The new Global Warehousing and Distribution service will allow sellers to store products in bulk at lower costs near manufacturing sites, facilitating easier distribution to destination countries. Amazon plans to establish these facilities in major manufacturing locations globally, with initial launches expected in China and Vietnam, followed by Europe, Indonesia, and India. Early pilots showed a seven-day acceleration in moving products from this service into Amazon's fulfillment network, improving stock availability for faster delivery.
Amazon Global Logistics (AGL) is also expanding its direct shipping routes from manufacturing hubs to popular destination countries. Currently offering ocean and air freight from China and Hong Kong to several European countries and the U.S., AGL aims to cover 96% of inbound volume for FBA by the end of 2026, promising fewer handoffs and more predictable schedules.
Generative AI for Customs Clearance
To streamline international trade, Amazon is implementing generative AI for customs clearance. This technology will pre-populate required fields, reuse existing information across documents, and flag potential errors, significantly reducing delays. Early results indicate that sellers have cut customs paperwork time by over 50%, as the AI assists in ensuring data consistency and accuracy, with sellers retaining the ability to review and approve all generated information.
Sources
- Amazon adds Walmart, Shopify, Shein to Multi-Channel Fulfillment coverage, Supply Chain Dive.
