Amazon Multi-Channel Fulfillment Fees (MCF) Are Going Down A LOT in 2020March 3, 2020 in Blog
Amazon has announced changes to its fees for multi-channel fulfillment (MCF). And there’s good news: they’re going down a lot.
If you have any type of off-Amazon presence, the chances are good that you use Amazon Multi-Channel Fulfillment at least in some capacity so this will be a positive impact for many sellers.
Just how much are MCF fees decreasing? We’ll break it down in plain English for you.
Note, we’ve shown charts for expedited shipping only. Expedited and Standard Shipping rate percentage decreases/increases are almost identical. Priority shipping (1-day) rates are almost universally unchanged.
External Link: Amazon MCF Changes for 2020 (Seller Central login required)
Related Reading: Amazon Fee Calculator 2020
Summary of Changes
Here’s a summary of the major fee changes:
- Every product size and speed of shipping is getting a fee decrease or no changes; There are no fee increases.
- Standard size items 16 ounces or less for expedited shipping will see fee decreases of approximately 20% to 35%.
- Standard size MCF orders now have less than 10oz and 10–16oz categories which are consistent with the FBA fee categories used for non-MCF orders
- Priority shipping (1-day shipping) fees for most size tiers remain unchanged.
- Small Oversize MCF fees for expedited shipping are going down approximately 15%; Other oversize tiers remain unchanged.
Changes to Standard Size Items
Amazon has now standardized size tiers for MCF orders instituting 10oz and10–16oz categories that are used for regular FBA fees.
- Standard size items weighing 1–2 lbs for expedited shipping will see fee decreases of approximately 17%
- Standard size items 16 ounces or less for expedited shipping OR standard shipping will see fee decreases of approximately 20%-35%.
- Standard size items of all weights for priority shipping (1 day) will see minimal to no decreases
Changes to Oversize Fees
Oversize multi-channel fulfillment fees are mostly unchanged except for small standard size items which will see fee decreases of approximately 15%. This will apply to both expedited and standard shipping speeds. There are no decreases for priority shipping.
Why is Amazon Decreasing Fees?
Amazon Multi-Channel Fulfillment fees have traditionally been much higher than regular on-Amazon FBA fees. These new decreases eliminate the price gap between these two tiers of fulfillment fees although MCF fees are still 30%+ higher than regular Amazon FBA fees.
Ultimately, it would seem Amazon is trying to encourage more businesses to use Amazon for their fulfillment from other channels. Perhaps it is some indication that Amazon’s network of carriers, specifically their network of in-house Amazon carriers, now have more capacity than demand.
How will the new FBA fee increases affect your business? If you run your own warehouse or you use a 3PL for the fulfillment, will you consider using Amazon for fulfilling orders? Let us know in the comments section below.
Dave Bryant has been importing from China for over 10 years and has started numerous product brands. He sold his multi-million dollar ecommerce business in 2016 and create another 7-figure business within 18 months. He’s also a former Amazon warehouse employee of one week.