An Introduction to Multichannel Fulfillment and Buy With Prime: Which Program Is Best for Your Business?
November 21, 2024Managing multiple sales channels and meeting customer expectations for fast shipping can be challenging. Whether you’re selling on your own website, social platforms, or marketplaces, keeping up with logistics and maintaining a seamless customer experience is key to increasing sales and reducing cart abandonment.
Amazon offers two powerful solutions for eCommerce brands: Multichannel Fulfillment (MCF) and Buy With Prime (BWP). These programs allow you to tap into Amazon’s logistics and customer base without sacrificing control of your brand or customer data. In this post, we’ll explore the benefits of both MCF and BWP, explain how they work, and help you determine which one is the best fit for your business.
What Is Multichannel Fulfillment (MCF)?
Multichannel Fulfillment (MCF) lets you use Amazon’s fulfillment network to ship orders from your other sales channels—your website, social media, or other marketplaces. You store your inventory in Amazon’s warehouses, and Amazon handles the logistics of picking, packing, and shipping your products no matter where the order is placed.
Key Benefits of MCF
- Meet Customer Expectations for Fast Shipping: Customers expect fast delivery, and 63% of consumers will switch retailers if delivery takes longer than two days. MCF lets you offer 1- or 2-day shipping across all your sales channels, not just on Amazon. This can help you retain customers who might otherwise abandon their carts due to long shipping times.
- Increase Conversions with 2-Day Shipping: Offering fast, reliable shipping isn’t just a perk anymore—it’s what customers expect. 80% of consumers wish more brands offered 2-day shipping, and when you use MCF, you can meet this demand across your entire eCommerce ecosystem.
- Simplify Returns: Managing returns can be a significant pain point for eCommerce businesses, especially with return rates ranging from 6% to 23% for online purchases. MCF allows you to take advantage of Amazon’s streamlined returns process, making it easier for your customers to return products without complicating your operations.
- Reach New Audiences on Social Media: Amazon is launching Prime badging on TikTok next month. Products with Prime shipping can now be showcased directly on TikTok, opening the door to a massive audience. With fast shipping as a key selling point, you can attract and convert more customers who discover your products through social media.
What Is Buy With Prime (BWP)?
Buy With Prime (BWP) brings Amazon’s fast shipping and trusted checkout experience to your own website. It allows Prime members to shop on your site and get the same perks they expect from Amazon—1- or 2-day shipping and free returns—all while you keep full control over your customer data and the relationship.
Key Benefits of BWP
- Convert More Prime Members: Prime members are loyal customers who value convenience. 40% of Prime members are more likely to make a first-time purchase from a direct-to-consumer (DTC) brand that features the Prime logo, and 50% of Prime members are likely to make repeat purchases when they see Prime benefits offered on a DTC site. By adding BWP to your website, you can tap into this large, engaged audience.
- Encourage Repeat Purchases: Customers who use BWP are likely to come back. 95% of shoppers who used Buy With Prime indicated they are likely to use it again. This makes BWP a great tool for building long-term relationships with customers, increasing their lifetime value.
- Build Trust with Amazon Reviews: Shoppers often look for reviews before making a purchase, and Amazon reviews are a reliable source of social proof. When you use BWP, you can display Amazon reviews on your site, which can lead to a 38% increase in conversion rates. The trust built through authentic customer feedback helps turn browsers into buyers.
MCF vs. BWP: How Do They Compare?
Which Program Is Right for You?
Choosing between MCF and BWP depends on your business model and goals. Here’s how to decide which is right for you:
- Use MCF if you’re selling on multiple platforms and need a way to centralize your inventory and offer fast, reliable shipping across all your channels. This is ideal if you’re juggling sales on your website, social media, and other marketplaces and want to simplify logistics.
- Use BWP if you’re focused on growing your DTC site and want to tap into Amazon’s loyal Prime customer base. BWP is perfect if you want to boost conversions and build trust by offering Prime benefits directly on your website without giving up control of your customer data.
- Combine Both for Maximum Impact: If you sell on multiple platforms and also have a strong DTC presence, you can use MCF to handle your shipping logistics across all channels and BWP to drive conversions and repeat purchases on your DTC site.
Conclusion
Whether you need to streamline fulfillment and logistics with Multichannel Fulfillment or boost trust and conversions with Buy With Prime, both programs can help you grow your eCommerce business. MCF helps you meet customer expectations for fast shipping and simplifies returns across multiple channels, while BWP lets you leverage the power of the Prime logo and Amazon reviews to drive sales on your own site.
Need help deciding which program is the best fit for your business? Contact us today, and we’ll guide you through setting up MCF, BWP, or both to help you increase sales, reduce cart abandonment, and boost customer loyalty.