To simplify logistics for sellers, the Amazon Fulfillment for Competitor Marketplaces program enables brands to manage their off-Amazon orders, a strategy the company reports has boosted multi-channel sales by an average of 19% for merchants.
Amazon just made a move that would have seemed unthinkable a few years ago: opening its world-class fulfillment network to its biggest competitors.
With an 83% household penetration rate reaching an estimated 121.8 million American households, Amazon is now offering Walmart, Shein, and Shopify sellers access to the same logistics infrastructure that built its empire.
The message is clear – Amazon would rather collect fulfillment fees from competitor sales than risk losing sellers entirely.
Amazon Fulfillment for Competitor Marketplaces Marks Major Step in Multi-Channel Logistics
"Amazon MCF made inventory management software obsolete."
A report from Supply Chain Dive written by Hugh Cameron says Amazon has unveiled a major change to its third-party logistics services. At the annual Amazon Accelerate conference in Seattle, the company announced it is expanding its Multi-Channel Fulfillment (MCF) service to support sellers on Walmart, Shopify, and Shein.
This integration means merchants can now use their single Amazon inventory pool to fulfill orders across multiple platforms. The stated goal is to help sellers simplify their logistics, increase sales, and manage their businesses more efficiently without needing separate packing and shipping channels.
Third-party sellers are a critical part of Amazon’s business, accounting for over 60 percent of the company’s retail sales. These independent merchants generated $156.1 billion in services-related revenue for Amazon in 2024.
The MCF program, originally launched in 2013, allows sellers to use Amazon’s vast logistics network for orders placed on external sales channels. This gives merchants access to Amazon’s established storing, packing, shipping, and customer service infrastructure.
The company stated the expansion helps brands reach customers wherever they shop while relying on Amazon’s fast and reliable delivery. This removes the significant time and cost sellers would otherwise invest in building their own fulfillment operations.
The program’s expansion will bring several key changes and reported benefits:
- New Marketplace Integrations
Merchants on Shopify and Walmart Marketplace can now use Amazon MCF, with the Shein U.S. Marketplace being added by the end of the year.
- Existing Channel Support
The service already supports other major channels, including eBay, Etsy, Temu, and TikTok Shop.
- Reported Seller Growth
Amazon claims that merchants who have previously used MCF have seen an average sales increase of 19% and a 12% improvement in inventory turnover.
Amazon Repositions as Infrastructure Provider Rather Than Retail-Only Competitor
Allison Smith explained in her ModernRetail article that a certain “gravitational pull” now guides Amazon’s logistics strategy. During a rare appearance at the Accelerate conference, CEO Andy Jassy compared the company’s original decision to allow third-party sellers to an unstoppable force, a principle that now extends to fulfilling orders for direct competitors.
The company’s logic is pragmatic and defensive, as merchants increasingly want to sell across multiple platforms like Walmart, Shein, and Shopify. For Amazon, refusing to service these channels risks losing sellers to other logistics providers, so it is better to supply the infrastructure and collect fees.
This expansion is also a direct response to seller demand for operational simplicity, a common pain point every Amazon agency addresses for its clients. Merchants have consistently asked to use their single pool of FBA inventory to fulfill all their off-Amazon orders.
For competitors like Walmart and Shein, the arrangement is equally practical. Building a world-class fulfillment network is an incredibly expensive and time-consuming endeavor, making it more efficient to use Amazon’s existing infrastructure.
While helping competitors could cost Amazon some retail sales, industry analysis suggests the risk is limited due to different customer appeals. This is supported by key data on shopper overlap.
- According to a November 2024 CIRP survey, 93% of Amazon customers have also shopped at Walmart.
- The same survey found 22% of Amazon customers have also shopped at Shein.
- For customers under the age of 35, that overlap with Shein increases significantly to 53%.
The strategy is also a clear acknowledgment of Walmart’s growing marketplace power. Walmart Marketplace now hosts over 200,000 active sellers and lists more than 420 million products online.
This move signals Amazon’s continued reframing of itself as a logistics company first, a strategy that mirrors its Amazon Web Services (AWS) cloud-computing unit. The company is betting that even if sales happen elsewhere, merchants will still pay Amazon to store, pack, and ship their goods.
Still, some guardrails remain in place to protect competitor branding. For example, Walmart’s policies require that orders fulfilled by Amazon arrive in unbranded boxes and are often routed through third-party carriers, not Amazon-branded vans.
FedEx Steps Up to Support Amazon’s Expanding Logistics Network
According to a Supply Chain Dive article by Max Garland, FedEx is advancing its onboarding with Amazon and celebrating new customer wins as part of this growth. FedEx’s large-package delivery deal with Amazon will be fully ramped up by the company’s fiscal third quarter, a critical phase in FedEx’s expansion strategy.
FedEx executives highlighted Best Buy’s designation of FedEx as its primary national parcel carrier, improving customer order communication with advanced tracking technology. This service is expected to reduce support calls, cancellations, and reship costs, enhancing overall customer experience.
FedEx also reported a revenue increase of over 10% year-over-year in Q1 from U.S. small- and medium-sized businesses. To stay competitive, FedEx leverages targeted sales execution, a strong loyalty program, and close collaboration between sales and operations teams.
The company is undergoing a major operational overhaul with its Network 2.0 plan, which combines its Express and Ground networks to improve efficiency. So far, about 140 facilities have been closed and 360 stations converted to support the new model, which handled 18% of daily U.S. volume at the end of Q1.
This logistic expansion by FedEx closely ties into Amazon’s strategy to broaden its Multi-Channel Fulfillment (MCF) services.
Amazon’s and FedEx’s intertwined strategies signal a shift toward a more integrated, multi-platform logistics ecosystem that supports both large retailers and independent sellers, driving efficiency and growth across the e-commerce landscape.
Amazon Adds Delivery Photos to Boost MCF Transparency
Retail-Outsource shared another important update about MCF on LinkedIn.
Eligible orders shipped via Amazon Logistics will now include delivery photos as proof of delivery.
This update is designed to give buyers more confidence by providing visual confirmation for unattended deliveries. For sellers, this feature helps improve customer support and can reduce the number of delivery-related disputes.
Sellers can make this feature available to their customers in several ways.
- Automated Email – By adding a buyer’s email address when creating an MCF order, a tracking link with the delivery photo will be shared automatically through Swiship.
- Direct Link – Sellers can also send the Swiship tracking link directly to buyers, which requires the tracking number and postal code.
- API Access – For those using Selling Partner APIs, delivery photos can be accessed through the getFulfilmentOrder API call.
Amazon has noted that all photos must meet specific quality standards. The images are required to be clear and high-quality, and they cannot have any people visible in them.
Will Haire, Co-founder at BellaVix"Amazon Logistics has a new way to flex: delivery photos for Multi-Channel Fulfillment orders. Think of it as a “proof of life” shot for your packages, minus the ransom note."
