Magento Amazon Fulfillment: Features & Best Practices
Looking to provide the best customer experience for your business? Magento Amazon fulfillment is the integration of your Magento 2 store with Amazon's fulfillment services.
In this article, we will explore the offerings and best practices for Magento Amazon fulfillment.
Key Takeaways
-
Integrate Magento 2 with Amazon for seamless order processing and fulfillment.
-
Use Amazon FBA extension to manage inventory, packing, and shipping for your Magento store.
-
Optimize shipping methods by syncing your Magento 2 store with Amazon's network.
-
Handle returns and customer service efficiently through Amazon’s fulfillment services.
-
Start selling on Amazon by connecting your Magento 2 store with Amazon's multi-channel platform.
-
How does Amazon Multi-Channel Fulfillment (MCF) work with Magento 2?
-
How does Amazon Fulfillment handle returns for Magento orders?
What is Magento 2 Amazon Fulfillment?
Magento 2 Amazon Fulfillment is the integration of Magento 2 with Amazon's Fulfillment by Amazon (FBA). It also includes Amazon's Multi-Channel Fulfillment (MCF) services. This integration allows stores to use the extensive logistics network to manage Magento orders efficiently.
Magento 2 can be connected to Amazon's fulfillment services through extensions or plugins. Amazon takes care of picking, packing, and shipping the products to your customers. It allows businesses to scale operations without significant investments in warehousing and logistics.
How does Amazon Multi-Channel Fulfillment (MCF) work with Magento 2?
MCF is an extension of Amazon's fulfillment services. It allows sellers to use Amazon's warehouses and shipping network for orders from other sales channels. It includes orders from Magento 2 stores. Here is how MCF works with Magento 2:
-
Integration: Sellers set up an integration between their Magento 2 store and Amazon MCF. It is achieved through API integration or using Magento extensions.
-
Inventory Sync: Products are sent to Amazon's fulfillment centers. Inventory levels are synced between the Magento store and Amazon.
-
Order Processing: When an order is placed on the Magento ecommerce store, it's sent to Amazon automatically.
-
Order Fulfillment: Amazon picks up, packs, and ships the order to the customer. Orders fulfilled through MCF are shipped in Amazon-branded packaging. It can impact the branding experience for customers receiving the products.
-
Order Updates: Shipping information and tracking details are sent back to Magento 2. Amazon offers various shipping options, including different delivery speeds.
-
Returns and Customer Service: The seller is responsible for managing returns and customer service for MCF orders. It requires the seller to establish their policies and handle customer queries.
Top 3 Amazon Fulfillment Connectors for Magento 2
| Extension Name | Key Features | Pricing |
|---|---|---|
| 247 CloudHub MultiChannel Connector | - Connects with Amazon, eBay, and other marketplaces - Real-inventory management across channels - Automated order management and fulfillment - Repricing features for Amazon ASINs - Comprehensive reporting and KPI analysis |
Free |
| Amazon Integration by CedCommerce | - Many-to-one product category mapping - Bulk product uploads - Notifications for low stock, new orders, and rejected products - Synchronizes with over 50 marketplaces - Centralized order and inventory management - Automated workflows and product listing creation |
Starts from $899 + $99 optional installation fee |
| Amazon Sales Channel by Adobe Commerce | - Integrates with multiple Amazon marketplaces - Real-time product listing synchronization - Flexible fulfillment options (FBA, independent, or both) - Supports B2B volume-tiered pricing - Currency conversion tool |
Free |
Costs Involved in Using Amazon Fulfillment with Magento 2
| Cost Type | Description | Cost |
|---|---|---|
| Fulfillment Fees | - Fees cover the cost of picking, packing, and shipping products - Standard-size fees range from $2.70 to $5.68 per unit. | $2.70 to $5.68 per unit |
| Storage Fees | - Monthly storage fees based on the volume of inventory - Higher rates during peak seasons (Oct-Dec); - Long-term fees apply after 365 days. | Off-peak (January to September): $0.78 per cubic foot for standard-size products. Peak (October to December): Up to $2.40 per cubic foot |
| Referral Fees | - Referral fees for each item sold are typically around 15% of the product's selling price. - It can vary based on the product category. For example, electronics might have a referral fee of 8%, while clothing could be 17%. | 5% for items priced below $15, 10% for those priced between $15 and $20 |
| Subscription Fees | - Monthly fee of $39.99 for Professional sellers and $0.99 per item for Individual sellers. | Professional sellers: $39.99 per month. Individual sellers: $0.99 per item sold. |
| Additional Fees | - Includes removal fees for unsold inventory, disposal fees for unsellable items, and optional service fees. | Removal fees: $1.04 to $2.89 per item, depending on weight Disposal Fees: $0.80 to $10.00 per item, depending on size and weight |
Challenges of using Amazon Fulfillment with Magento 2
| Challenge | Description |
|---|---|
| Steep Pricing | Amazon's pricing for Multi-Channel Fulfillment (MCF) can be substantial. It is especially for bulky for large products. The fee structure is complex. It makes it difficult to estimate expenses and profit margins accurately. |
| Limited Inventory Visibility | Sellers have partial insights into inventory quantities and locations. It complicates stock management. It can lead to excess or insufficient inventory. It results in missed sales or unused resources. |
| Shipping Delays | Shipping delays can occur due to natural disasters, adverse weather, or unforeseen circumstances. These delays can harm a seller's reputation and customer satisfaction. |
| Branding Limitations | Amazon MCF offers limited customization for packaging and branding. It poses challenges for sellers who want to differentiate their brands and offer a unique customer experience. |
| Customer Service Issues | Some sellers report delayed responses and a need for personalized assistance from Amazon's customer service. It can be frustrating when dealing with MCF orders or navigating the platform. |
Best Practices for Using Amazon Fulfillment with Magento 2
1. Pricing Strategy
-
Pricing is necessary for profitability. It affects competitiveness and sales volume. A good strategy balances costs and market demand.
-
Amazon charges various fees. These include fulfillment fees, storage fees, and referral fees. Each fee impacts your bottom line. Know these fees thoroughly.
-
Add up all costs associated with each product, including manufacturing, shipping to Amazon, and Amazon fees. Remember overhead costs. It gives you the break-even point.
-
Invest in repricing software. These tools automatically adjust prices. They consider competitor prices and your set rules. It keeps you competitive 24/7.
2. Real-Time Inventory Synchronization
-
It ensures that inventory levels are consistently updated across platforms. It prevents issues such as overselling or stockouts.
-
Use specialized extensions and connectors for automatic syncing. These tools connect Magento 2 and Amazon in real time. They update inventory levels instantly when changes occur.
-
Implement a buffer stock system. It provides a safety margin against sync delays. It helps prevent overselling during high-traffic periods.
-
If using multiple warehouses, ensure proper allocation. Your sync system should account for inventory across all locations. It includes Amazon's fulfillment centers.
3. Shipping Settings
-
Align Magento shipping options with Amazon's. It ensures consistency across platforms. It prevents customer confusion.
-
Understand Amazon's shipping options. These include Standard, Two-Day, and One-Day shipping. Familiarize yourself with Prime shipping requirements.
-
Set up corresponding shipping methods in Magento. Create rules that match Amazon's offerings.
-
Set realistic handling times in both systems. It affects the estimated delivery date. Be conservative to avoid disappointing customers.
-
Split shipments occur when an order is divided. Items ship from different locations. It is common with Amazon Fulfillment. Configure settings for split shipments. Ensure Magento can handle and communicate split shipments properly.
-
Set up automated emails for split shipments. Inform customers when part of their order ships. Explain why the order is split.
How does Amazon Fulfillment handle returns for Magento orders?
Amazon Fulfillment handles returns for Magento orders through its Fulfillment by Amazon (FBA) service. Here’s how it works:
1. Return Process
-
Customer Initiation: When a customer returns a product, they initiate the return through the Returns Center. This platform provides help pages and contact details to guide customers through the process.
-
Amazon Management: Amazon manages the entire return process, including customer inquiries, refunds, and logistics. It means that sellers can handle these aspects without having to handle them directly. It allows them to focus on other business areas.
-
Refund Processing: Amazon processes customer refunds according to its returns policy and the terms of the FBA service. Refunds are documented in the seller's Amazon account. It provides transparency and ease of tracking.
2. Handling Returned Products
-
Assessment: Once a product is returned, Amazon assesses its condition. If the product is still sellable in the same condition, it is automatically placed back into the seller's inventory for sale.
-
Unfulfillable Inventory: If a returned product is deemed unsellable, it is flagged as damaged. Sellers can choose to have these items returned to them or disposed of by Amazon. If no action is taken within 90 days, Amazon may decide to dispose of or return the item at its discretion.
FAQs
1. How does the Amazon MCF integration work with a Magento 2 store?
The Amazon MCF module integrates the Magento 2 store with Amazon’s Multi-Channel Fulfillment (MCF) service. It allows seamless order processing. Through this integration, your Magento admin can manage orders, shipping methods, and inventory.
2. Can I use my FBA inventory to fulfill non-Amazon orders on Magento?
Yes, you can use your FBA inventory to fulfill non-Amazon orders via the Magento Amazon integration. The FBA fulfillment module enables the admin to process orders from your Magento store. It is done using the inventory stored in Amazon’s fulfillment network.
3. What steps are required to start selling on Amazon from a Magento 2 store?
To start selling on Amazon, map the Magento 2 store to your Amazon account. You’ll need to install the Amazon Magento 2 integration extension. Define your Amazon account settings, and configure your store’s products for Amazon FBA or FBM fulfillment.
4. How does Amazon handle returns for orders processed through Magento?
When a return is initiated, Amazon’s order fulfillment service manages the entire process. It includes assessment and refund. The Magento admin can view the return status via Amazon. It ensures transparency in managing customer returns.
5. What are the benefits of using the Amazon Connector for Magento 2?
The Amazon Connector allows seamless integration of your Magento 2 store with Amazon. It enables easy management of products, orders, and shipping methods. It supports both FBA and FBM, helping you streamline your e-commerce operations across platforms.
Summary
Magento Amazon fulfillment integration is key for providing the best customer experience in ecommerce. In this article, we explained the costs, best practices and working of Amazon fulfillment for Magento. Here is a quick recap:
-
Magento 2 Amazon MCF module integrates your store with Amazon's fulfillment services. It streamlines order processing and shipping methods.
-
Amazon FBA extension allows Magento sellers to manage orders, packing, and shipping. It is whether they belong to an Amazon account or any other platform.
-
Admin can define the Amazon account as an FBA or FBM product. It fulfills non-Amazon orders efficiently.
-
Magento Open Source users can map their two stores to the Amazon multi-channel network. It enhances their e-commerce reach.
-
Follow the easy steps to start using Amazon services. It includes setting up Magento 2 store shipping methods.
Expand your store with managed Magento hosting and Amazon fulfillment for the best performance and quick deliveries.
