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Amazon’s Multi-Channel Fulfillment (MCF) service has reported a remarkable 70% year-over-year increase in orders fulfilled for off-Amazon sales channels. 

This surge, reported on by Marketplace Pulse and predominantly driven by the meteoric rise of TikTok Shop, outpaces Amazon’s on-platform sales growth and underscores the company’s evolving role as a cornerstone of e-commerce infrastructure.

MCF, an extension of the well-established Fulfillment by Amazon (FBA) service, empowers sellers to use Amazon’s sophisticated logistics network to fill orders placed across a diverse array of platforms. This includes major players such as eBay, Etsy and TikTok, as well as countless direct-to-consumer websites.

The service’s reach is substantial, with Amazon revealing at its recent Accelerate conference in Seattle that MCF now serves over 200,000 U.S. sellers.

TikTok Shop: The Catalyst for Growth

The explosive growth of MCF can be largely attributed to TikTok Shop’s aggressive expansion in the U.S. e-commerce market. Despite being a relative newcomer, having launched just a year ago, TikTok has set an ambitious target of growing its U.S. e-commerce business to a staggering $17.5 billion this year. This trajectory far outstrips the growth rates of established industry giants like Amazon and Walmart, as well as traditional direct-to-consumer channels.

Strategic Positioning in a Changing Landscape

Amazon’s strategic positioning of MCF as a pivotal service comes at a time when the e-commerce landscape is undergoing rapid transformation. The company’s move to strengthen its off-platform capabilities demonstrates a shrewd recognition of the evolving nature of online retail, where consumers increasingly engage with brands across multiple touchpoints and platforms.

Improvements and Challenges

In response to this shifting paradigm, Amazon has implemented significant improvements to MCF, addressing historical pain points that had previously limited its appeal. These enhancements include more competitive pricing structures, expanded branding options to allow sellers greater control over their customer experience, and notably faster shipping speeds. The reduction of standard shipping times from 5 to 3 business days marks a significant leap forward in meeting the expectations of today’s speed-obsessed consumers.

Despite these advancements, it’s worth noting that MCF often serves as a secondary or transitional fulfillment solution for many sellers. This suggests that while the service has made substantial strides, there remains room for further refinement and expansion to fully capture the market’s potential.

Beyond Direct Sales: Amazon’s Broader Strategy

Amazon’s strategy extends far beyond merely increasing direct sales on its platform. The company is positioning itself as the fundamental backbone of retail infrastructure, even for transactions that occur outside its immediate ecosystem. This comprehensive approach encompasses not only fulfillment services but also innovative payment solutions such as Buy with Prime and Amazon Pay.

Market Share and Expansion

With an estimated 40% share of the U.S. e-commerce market, Amazon is aggressively working to capture a portion of the remaining 60% through its suite of services. The 70% growth in MCF orders serves as a powerful indicator of the success of this approach and signals Amazon’s expanding influence across the broader e-commerce ecosystem.

Competition and Industry Trends

Interestingly, Amazon’s push into multi-channel fulfillment has not gone unnoticed by its competitors. Walmart introduced an expansion to its own Walmart Fulfillment Services (WFS) in August 2024. This development points to a broader industry trend, with major retailers increasingly leveraging their logistics capabilities to serve multiple sales channels and capture a larger share of the e-commerce fulfillment market.

The Future of E-Commerce Fulfillment

As the e-commerce landscape continues to evolve, the role of fulfillment services like MCF is likely to become increasingly critical. These services not only provide logistical support but also enable brands and sellers to maintain a consistent, high-quality customer experience across multiple platforms. This consistency is crucial in an era where brand loyalty is often fragmented across various shopping channels.

Implications and Interdependence

The success of MCF highlights the growing interdependence within the e-commerce ecosystem. Even as platforms like TikTok Shop emerge as formidable competitors to Amazon in terms of direct sales, they rely on contemporary strategies such as social commerce and influencers.

Still, they ultimately depand on Amazon’s infrastructure to fulfill their orders efficiently. This symbiotic relationship underscores the complexity of the modern e-commerce landscape, where competition and cooperation often coexist.

How Canopy Management Can Help

Is Amazon’s MCF service – and its impressive new numbers – a testament to the company’s foresight and adaptability, or is it simply on the receiving end of TikTok’s explosive growth? In either case, by positioning itself as a crucial infrastructure provider across multiple sales channels, Amazon is not just participating in the evolution of e-commerce – it’s actively shaping its future. 

Want to position your own Amazon (or Walmart) brand for success? Consider doing what increasing numbers of top e-commerce sellers have done and reach out to the team at Canopy Management. 

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation