Amazon to increase fees for Multi-Channel Fulfillment programme

Friday 23 December 2022 10:20 CET | News

Amazon has announced that on 19 January 2023, it will be raising fees for online merchants that use its Multi-Channel Fulfillment (MCF) programme.


MCF is Amazon’s third-party logistics (3PL) programme that enables online merchants on platforms such as BigCommerce, Wix, and Adobe Commerce (Magento), to integrate Amazon’s massive network of fulfillment centres to deliver orders in unbranded boxes to their customers.

According to eSeller365, Amazon explained that the fee adjustment by saying that it will improve its standard delivery speed from 7 days to 5 days and continue to invest in its 3PL service to be more efficient and with more features.


Amazon has announced that on 19 January 2023, it will be raising fees for online merchants that use its Multi-Channel Fulfillment (MCF) programme.

Amazon’s Multi-Channel Fulfillment – plans for 2023

Over the course of 2023, Amazon MCF will continue to have three speed tiers: 5-day delivery, 3-day delivery, and 2-day delivery. But still no next-day delivery option.

The company will reportedly let go of its lightweight pricing for items weighing under 2 ounces that will now be merged into the same group of items weighing 6 ounces or less. In addition, 5+ unit order pricing is also going away, with the new pricing starting at 4+ unit orders for larger shipments.

Additionally, These are massive increases Amazon is implementing for merchants in 2023, above the shipping rate adjustments of 5.5% by USPS and 6.9% by UPS and FedEx that will go into effect over the coming weeks.

Amazon market penetration in the US

According to Statista, as of June 2022, Amazon accounted for 37.8% of the US ecommerce market, making it effectively the largest online retailer in the country. Second place was occupied by the ecommerce site of retail chain Walmart, with a 6.3% market share, followed in third place by Apple, with 3.9%.

Moreover, data from Insider Intelligence indicates that Amazon will account for 39.5% of all US retail ecommerce sales by the end of 2022, or nearly USD 2 in 5 spent online. Altogether, the next 14 biggest digital retailers will make up just 31.0%, with the remaining 29.5% of the ecommerce pie going to everybody else.

In 2022, Amazon will pocket more than USD 400 billion of the country’s roughly USD 1 trillion in ecommerce sales. The retail giant will also rake in more than five times the digital sales of its closest rival, Walmart, and see those sales grow by 14.6%, faster than the overall US ecommerce market, which will expand by 14.1%.

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Keywords: product upgrade, ecommerce, scheme fee, online shopping
Categories: Payments & Commerce
Companies: Amazon
Countries: United States
This article is part of category

Payments & Commerce


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