Amazon’s latest Multi-Channel Fulfillment (MCF) pricing overhaul is driving sellers to accelerate their expansion into alternative marketplaces, with Walmart and Target emerging as the primary beneficiaries of the e-commerce giant’s strategic shift away from external fulfillment services.
The new fee structure, which took effect May 1, 2026, has increased MCF costs by an average of 28% across product categories, according to data from marketplace analytics firm SellerMetrics. The changes affect over 180,000 Amazon sellers who use MCF to fulfill orders from their Shopify stores, eBay listings, and other sales channels.
“Amazon is clearly signaling that they want sellers focused on their marketplace first,” said Jennifer Martinez, director of marketplace strategy at Thrasio. “The MCF pricing changes aren’t just about profitability—they’re about forcing sellers to choose between Amazon’s ecosystem and true multichannel strategies.”
What’s Driving Amazon’s MCF Price Increases?
The pricing restructure introduces new “external order” surcharges ranging from $0.89 for standard-size items to $3.47 for oversized products. Additionally, Amazon has implemented dynamic pricing for peak seasons, with fees increasing by up to 45% during Black Friday and holiday periods.
Internal Amazon documents reviewed by Ecommerce Times reveal that the company views MCF as a “strategic lever” to drive sellers toward Amazon-first selling strategies. The move comes as Amazon faces intensifying competition from Walmart’s Fulfillment Services and Target’s growing marketplace platform.
“We’re seeing clear data that sellers using MCF extensively are often treating Amazon as just another fulfillment center rather than focusing on marketplace growth,” explained one former Amazon Seller Services executive who requested anonymity. “This pricing change realigns incentives.”
How Are Sellers Responding to the MCF Changes?
Marketplace intelligence platform Pattern reports a 73% increase in seller inquiries about Walmart Fulfillment Services since the MCF pricing announcement. Similarly, Target Plus applications have surged 156% over the past three weeks, according to marketplace consultancy firm Velocity Commerce.
Mid-market seller Sarah Chen, whose home goods brand generates $2.4 million annually across multiple channels, exemplifies the broader trend. “Our MCF costs jumped from $180,000 annually to $240,000 under the new structure,” Chen explained. “We’re now moving 60% of our non-Amazon inventory to Walmart’s fulfillment network and exploring Target Plus.”
“The economics just don’t work anymore for true multichannel brands. Amazon is forcing us to choose sides, so we’re diversifying our fulfillment options rather than staying dependent on MCF.”
This sentiment is reflected in broader market data. Walmart Fulfillment Services reported a 34% quarter-over-quarter growth in new merchant enrollments, while third-party logistics providers like ShipBob and Fulfillment by Amazon alternatives have seen increased demand.
Which Marketplaces Are Benefiting Most?
Walmart has emerged as the biggest winner from Amazon’s MCF pricing strategy. The retailer’s marketplace GMV increased 41% year-over-year in Q1 2026, with much of the growth attributed to sellers migrating from Amazon-centric strategies.
“Walmart Connect’s advertising platform is finally competitive with Amazon’s, and their fulfillment costs are now 15-20% lower for most categories,” noted Marcus Rodriguez, head of marketplace expansion at digital agency Tinuiti. “Sellers are discovering they can achieve similar reach without the Amazon tax.”
Target Plus has also benefited, though to a lesser extent due to its more selective merchant approval process. The platform’s focus on premium brands aligns well with sellers seeking alternatives to Amazon’s increasingly commoditized environment.
eBay has seen renewed interest from sellers, particularly in collectibles and refurbished electronics categories where MCF costs were historically more palatable. The platform’s managed delivery service has gained traction among former MCF users.
What Do Rising MCF Costs Mean for FBA Strategy?
The MCF pricing changes are forcing sellers to reconsider their entire Amazon strategy, particularly the relationship between FBA and external channel fulfillment. Many sellers are now questioning whether maintaining large FBA inventories makes sense if MCF is no longer cost-effective.
“We’re seeing sellers split their inventory strategies,” explained David Park, senior analyst at Marketplace Pulse. “They’re keeping fast-moving SKUs in FBA for Amazon sales but moving slower inventory to 3PLs for multichannel fulfillment.”
This inventory splitting strategy requires more sophisticated demand forecasting and creates operational complexity, but it allows sellers to optimize costs across channels. Advanced sellers are using tools like RestockPro and InventoryLab to manage split inventory strategies.
Some sellers are going further, reducing their FBA footprint entirely in favor of Fulfilled by Merchant (FBM) combined with third-party logistics providers. This approach sacrifices some Amazon Buy Box competitiveness but provides greater flexibility and often lower overall costs.
How Should Sellers Adapt Their Multichannel Strategy?
Industry experts recommend a three-pronged approach for sellers navigating the MCF pricing changes:
- Audit current fulfillment costs: Calculate true MCF costs including new surcharges and compare with 3PL alternatives
- Diversify marketplace presence: Establish strong positions on Walmart and Target to reduce Amazon dependence
- Implement inventory splitting: Maintain FBA for Amazon-only inventory while using 3PLs for multichannel fulfillment
“The sellers who will thrive are those who view this as an opportunity to build truly diversified businesses rather than Amazon-dependent operations,” advised Melissa Chang, principal at marketplace consultancy Prosper Strategies.
What’s Next for Amazon’s Marketplace Strategy?
Industry analysts expect Amazon to continue using pricing as a tool to shape seller behavior. Future changes may include preferential advertising rates for sellers who maintain higher percentages of Amazon-only inventory or additional restrictions on MCF service levels.
“Amazon is playing a long game here,” observed Tom Wilson, former VP of Seller Services at Amazon and current CEO of marketplace analytics firm SellerApp. “They’re willing to sacrifice some MCF revenue to strengthen their core marketplace ecosystem and reduce subsidization of competing platforms.”
The changes represent a broader shift in Amazon’s approach to third-party sellers, moving from growth-at-all-costs to strategic selectivity. Sellers who can adapt to this new reality while building strong alternative channel strategies are positioned to maintain growth despite the higher costs.
For the broader e-commerce landscape, Amazon’s MCF pricing changes may accelerate the long-predicted fragmentation of online retail, giving platforms like Walmart and Target the opening they need to capture meaningful marketplace share from the e-commerce giant.
