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What is Amazon Multi-Channel Fulfillment(MCF)? Multi- Channel Fulfillment(MCF) is an Amazon-operated fulfillment service for vendors who sell on eBay, online marketplaces other than Amazon, as well as through third-party channels. For instance, you might sell items on eBay. Merely one section of that site could be e-commerce, with sales order buttons, shipping choices, and payment options such as PayPal, Google Checkout, or other online payment solutions.

In contrast, third-party e-commerce fulfillment centers may not have inventory on-site. Rather, they have a warehouse and receiving and distributing space. Their job is to keep tabs on their inventory, as well as ensure that all of the items sold by their eBay vendors are delivered by their designated shippers. While those organizations may make money by selling items on eBay – and possibly other marketplaces – through their own websites and accepting payments via electronic transfer, there is no chance for those eBay vendors to have items on their premises – only in their warehouses. Thus, it makes little sense to sell physical merchandise through a website and have buyers pick up their purchases at a local store.

So what is the advantage of shopping through multi-channel fulfillment? It’s all about the cost savings. Say you’re a seller who sells on eBay. You list a number of items for sale. When you receive an order, it will be necessary to fulfill orders by contacting your customers by telephone, by mailing catalogs, and by visiting locations in your home where customers can physically visit the products. If you want to be cost-effective with your multi-channel fulfillment efforts, you have to minimize the number of trips you have to make to fulfill orders.

The best way to save money on multi-channel fulfillment is to use an amazon-branded drop ship provider. These organizations send out resellers’ equipment and supplies to your customers. Rather than having to maintain inventories at your home or business, your resellers’ equipment and supplies will be delivered to them through amazon’s online portals. You don’t even have to hire additional employees to man your drop shipping facility. Amazons offer the best and most complete return of investment for your business.

How does multi-channel fulfillment work? The process begins when your customer or consumer orders from your website. Your drop ship provider then stores the order information and then forwards it to your suppliers so they can ship it directly to the customer. Then your suppliers just need to take care of the inventory of the ordered item(s). You don’t have to worry about inventory control, stocking, storage fees or returns.

This multi-channel fulfillment strategy is ideal for traditional brick and mortar businesses and small online businesses that have limited sales channels. But it’s also very useful for medium and large size companies that are expanding and do not currently have fulfillment centers in their possession. Many sellers choose to partner with fulfillment companies that specialize in a particular product, such as electronics. However, many sellers also find that it’s advantageous to partner with a seller who specializes in a broad variety of products such as books, furniture or sports equipment. A seller with a wide variety of products to fulfill provides faster turnaround times for orders and significantly reduced storage fees.

Another great benefit of this multi-channel fulfillment strategy is the reduction in international shipping costs. When you partner with an international shipping company, you’ll eliminate the need for extra storage spaces and you don’t have to pay exorbitant international shipping fees. Many sellers do not have an appropriate location in their home country to ship their inventory to because the weather conditions there may not be suitable for storage. By partnering with a multi-channel fulfillment company, sellers eliminate the need to ship their items individually and they eliminate the risk of paying excessive international shipping fees.

The mcf process offers the advantages of increased sales channels and reduced international shipping costs for sellers with limited sales channels and inventory turnover. In addition, it enables the use of multiple methods of payment including credit cards, electronic checks and Paypal. This is ideal for multi-national companies with employees all over the world. The mcf process is also ideal for businesses that have been in operation for several years because it helps reduce paperwork and reduces delays and mistakes.