Walmart Officially Allows Amazon Multi-Channel Fulfillment (MCF)

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Last updated on June 09, 2025

3D illustration showing Amazon MCF boxes and a large blue Walmart shopping bag, symbolizing their cooperative ecommerce logistics.

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Big news for multichannel sellers: Walmart now officially allows Amazon Multi-Channel Fulfillment (MCF). Yes, you read that right. The retail giant has updated its policies, enabling sellers to use Amazon’s fulfillment network for Walmart orders, provided specific conditions are met.

What’s Changed?

Previously, Walmart prohibited the use of Amazon MCF for order fulfillment. However, as of May 15, 2025, Walmart’s updated Shipping & Fulfillment policy states:

“You may use Multi-Channel Fulfillment as long as you ship in neutral packaging using unbranded delivery vehicles, which means neither can display any logos, trademarks, or branding of the other retailer.”

This policy shift allows sellers to leverage Amazon’s robust fulfillment network to process Walmart orders, provided they adhere to the neutral packaging and carrier requirements (they don’t want Amazon logos on packaging, tape, trucks, driver uniforms, etc.).

Why Now?

Walmart’s decision reflects the evolving landscape of ecommerce, where flexibility and efficiency are paramount. By permitting Amazon MCF, Walmart acknowledges the need for sellers to streamline operations across multiple platforms. This move aligns with broader trends in retail logistics, emphasizing interoperability and seller convenience.

What It Means for Sellers

Pros:
  • Operational Efficiency: Sellers can consolidate inventory management by using Amazon’s fulfillment centers for both Amazon and Walmart orders.
  • Faster Fulfillment: Amazon’s extensive logistics network can expedite order delivery, enhancing customer satisfaction.
  • Cost Savings: Utilizing a single fulfillment service can reduce overhead costs associated with managing multiple logistics providers and additional inventory required to be staged across providers.
    • Cons:
  • Fulfillment Cost: Amazon MCF is substantially more expensive than FBA (2–3×, which can be cost-prohibitive in many low-margin categories).
  • Additional Fees: Blocking Amazon Logistics as a carrier incurs a 5% surcharge on MCF fees.
  • FBA Gets Priority: Amazon prioritizes FBA orders, so there’s a chance that MCF orders don’t ship on time or ship with a more expensive service to ensure on-time delivery.
  • Policy Compliance: Sellers must stay vigilant to adhere to both Walmart’s and Amazon’s fulfillment policies to avoid potential violations.

    • Pro Tips for Sellers

    1. Inventory Management: Maintain accurate inventory levels in Amazon’s fulfillment centers to prevent stockouts on Walmart orders.

    2. Carrier Settings: Configure your Amazon MCF settings to block Amazon Logistics for Walmart orders, complying with Walmart’s delivery requirements.

    3. Packaging Compliance: Ensure all shipments to Walmart customers are in neutral packaging, devoid of any Amazon branding.

    4. Cost Analysis: Regularly assess the cost-effectiveness of using Amazon MCF for Walmart orders, considering the additional surcharges and fees.

    5. Monitor Performance: Keep an eye on delivery times and customer feedback to ensure the fulfillment process meets Walmart’s standards.

    Final Thoughts

    Walmart’s policy update to allow Amazon MCF is a significant development for multichannel sellers. It offers an opportunity to streamline operations, reduce some overhead expenses, and enhance customer satisfaction with potentially faster delivery from distributed fulfillment. However, it’s crucial to navigate the associated requirements carefully to fully leverage the benefits of this new fulfillment option. And fulfillment costs will need to be monitored closely to make sure that it makes sense to use MCF. If not, it might make more sense to outsource Walmart fulfillment to another distributed fulfillment provider such as Cahoot.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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