GLOBAL SELLING BLOG

What is Merchant Fulfilled Network (MFN) on Amazon and how does it work?

Amazon Global Selling gives Indian sellers and exporters the option to choose their international shipping mode – Merchant Fulfilled Network (MFN) or Fulfillment by Amazon (FBA). Here's a guide on how to handle your own shipping and delivery while exporting from India.

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One of the key steps that impacts customer experience is product delivery. When exporting from India, it is important for sellers to plan their inventory and international shipping to ensure products reach customers on time without an impact on quality. Once registered with Amazon Global Selling, sellers have the option to opt for Fulfillment by Amazon (FBA) and let Amazon handle shipping or they can opt for self-ship or Fulfillment by Merchant (MFN).

While self-shipping your orders, as a seller, you need to take care of the entire process of shipping – from printing of shipping labels and bills to packing, shipping and delivering the product on or before time.

What is Amazon MFN?

Fulfillment by Merchant is a shipping method where sellers list their products on Amazon international marketplaces and choose to ship their products by themselves to each customer. In this shipping method, Amazon is not involved in any of the logistics steps like packing, returns, etc. Amazon MFN usually means you have to find a third-party delivery partner for transport and deliver the product to the customer’s address from the warehouse.

How does Amazon MFN work?

The process of MFN is simple – you manage end-to-end fulfillment once the customer places the order. Either you can use your own logistics or work with third-party logistics or carrier provider to ship and deliver your products.

Once you’ve registered on Amazon Global Selling, you can submit the required documents and complete your launch on any or all of the 18 international marketplaces of your choice. You can then list your products following Amazon's recommended suggestions on the selected marketplaces. Once listed, your products are visible to international customers for purchase.

When the customer places an order for your product, you can then initiate shipping and delivery. An important step in Amazon MFN is planning inventory in different regions depending on your product demand among customers and your business goals. You can distribute your products to strategic locations as per your analysis of product demand, thus, saving last-minute shipping costs and also reducing your average shipping time. If your business is small, you can also choose to store your products at your local store or manufacturing unit.

For a seamless customer experience, you are required to share shipping updates for the customer to track delivery. Providing an estimated delivery date and ensuring products reach customers on or before it, enhances their experience, which can lead to brand loyalty and positive reviews.

When to choose Amazon MFN for fulfillment?

You can choose Amazon MFN if:
• You have a reliable logistics partner or your own setup for shipping
• You have enough space to store your inventory
• You are able to mitigate the expenses involved in fulfilling your own products
• You have a team to handle customer service.

What are the pros and cons of MFN?

Pros

• More control over inventory and fulfillment:
This gives you control over your inventory and fulfillment processes.

• Direct involvement with customers:
As an MFN seller, you have to interact with your customers directly and thus, you will get a better understanding of their requirements and complaints.

Cons

• Customer service and returns:
With MFN, you have to handle your customer service and returns. This will require a dedicated team and more manpower.

• Increased expenses:
With MFN, you will need your own warehouse to store your inventory, pack it and meet all the required shipping documents and compliance. This means extra effort, time and more expenses due to increased space.

Tips for Amazon MFN sellers

Easy-Ship Benefits - Pickup from your address

Manage your delivery time

With Amazon FBA, customers get quick delivery – sometimes, as fast as 2 days. To match this, it is suggested you also provide a logical yet quick delivery date.

Provide valid tracking information

Amazon customers depend on tracking numbers to find where their orders are. As an MFN seller, you need to provide valid tracking details.

Set your default return instructions

Mention clear return instructions to avoid any bad customer experience and negative reviews.

While you can choose to manage your own shipping via MFN, with Amazon partner carrier service, you can focus on your business expansion and goals while Amazon takes care of delivering your products to international customers.

Fulfillment by Amazon (FBA): A seamless international shipping model

FBA enables Indian sellers to reach international customers and deliver their products across the globe in a hassle-free manner. When you choose FBA to ship your products, here’s what you get:

- Amazon stores your products in the Amazon fulfillment center.
- Amazon handles quick delivery to destinations across the globe with the Prime shipping option.
- Amazon offers 24/7 customer service
- Amazon FBA takes care of the returns
- Amazon FBA notifies you when you need to restock the products (if needed).

To support you for hassle-free logistics, Amazon has also launched SEND, enabling you to ship directly to international fulfillment centers at competitive prices. All you have to do is book, pay and track shipments without any hassles from India to the world.

Explore Amazon SEND

Ready to export?

Frequently Asked Questions

Can I ship with FBA and MFN together for different products?

Yes. If you have a large variety of products to sell, you can opt for MFN and FBA.

Who is eligible for MFN fulfillment?

Fulfillment by Merchant or MFN is when Amazon sellers take full responsibility for storing inventory and shipping orders. It does not require any eligibility. A seller has the freedom to opt for FBA or MFN.

Is Amazon MFN option available for international shipping?

Yes. When customers outside the country purchase your products, you can fulfill your orders by yourself.

What are the shipping documents required for Amazon MFN?

Commercial invoice, packing list, GST Letter of Undertaking and Shipper's Letter of Instruction are some of the mandatory document requirements, irrespective of your shipping mode.

Visit Exports Compliance Dashboard to meet your documentation requirements

Published on March 31, 2022.

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