Amazon is significantly broadening the reach of its Multi-Channel Fulfillment (MCF) service, now integrating sales channels from major e-commerce platforms like Shopify, Walmart, and Shein. This strategic move allows sellers to leverage Amazon's extensive fulfillment network for orders originating from these diverse marketplaces, aiming to streamline inventory management and enhance delivery efficiency across multiple sales fronts.
Key Takeaways
- Amazon's Multi-Channel Fulfillment now supports orders from Walmart, with Shopify integration live and Shein support coming later this year.
- The expansion enables sellers to manage a unified inventory pool across various sales channels, reducing stagnant stock.
- New services like Global Warehousing and Distribution and AI-powered customs clearance are also being introduced to bolster the seller ecosystem.
Enhanced Multi-Channel Fulfillment
Dharmesh Mehta, VP of worldwide selling partner services at Amazon, announced the expansion, highlighting that MCF already supports platforms such as Etsy, Temu, and TikTok Shop. The integration with Shopify is now active, and support for Shein is anticipated by the end of the year. This allows sellers to maintain a single inventory pool, reducing the need for excess stock across different warehouses and improving inventory turnover rates. Mehta noted that using MCF alongside Fulfillment by Amazon (FBA) can lead to approximately 19% fewer out-of-stock instances and a 12% increase in inventory turnover.
New Supply Chain Innovations
Beyond MCF, Amazon is rolling out several other services designed to create a comprehensive supply chain ecosystem for sellers. The new Global Warehousing and Distribution service will enable sellers to store products in bulk at lower costs near manufacturing sites, with goods deployable to destination countries as needed. Initial locations are being explored in China and Vietnam, with plans to expand to Europe, Indonesia, and India. Early tests showed a seven-day acceleration in moving products into Amazon's fulfillment network, improving stock availability for faster delivery.
Global Logistics and AI Advancements
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 FBA volume by the end of 2026, promising fewer handoffs and more predictable schedules. Furthermore, Amazon is implementing generative AI to simplify customs clearance. This technology pre-populates required fields, reuses information across documents, and flags potential errors, with early results indicating over a 50% reduction in customs paperwork time for sellers.
Key Takeaways
- Amazon adds Walmart, Shopify, Shein to Multi-Channel Fulfillment coverage, Supply Chain Dive.
