B2B e-commerce has been experiencing an exponential rise in popularity. It is now much easier to find B2B principles in many top marketplaces, including Amazon. The Amazon B2B website, as the name suggests, is specifically built for the business buyers and sellers. While Amazon itself focuses on online retail, the Amazon B2B is quite different, as it provides a platform for companies or parties who only sell to businesses rather than to individual end-users.
The Growth Of Amazon B2B
Back in 2015, Amazon launched its Amazon Business platform. Since its establishment, Amazon Business has been a significant tool for businesses looking to globally expand their sales. Businesses who join with Amazon Business can now get multiple accounts, quantity discounts, shipment promotions, and many other perks that the conventional Amazon online platform does not offer. In its first year, its sales generated around one billion dollars, showing the potential for its nearly unlimited prospective growth.
Amazon Business is an Amazon B2B e-commerce platform. It is crucial to have the common ground of B2B as the abbreviation of business-to-business, which denotes the true intent of this platform to conduct transactions between existing members.
This platform was created by Amazon to fill the need of business customers who were looking for more advanced features such as the multiple account users through one Amazon B2B account, a wide selection of payment options, credit options, discounted prices for bulk orders, fast and reliable shipment, and many others. Therefore, the Amazon Business platform is the premium destination for business users who are looking to sell to or purchase necessary products or services from other businesses. In a nutshell, it is a much better platform for B2B users because they can make use of the more flexible features with regards to content, pricing, and product variation.
Why Amazon B2B Is Worth Consideration
Amazon has done a lot of things to tweak their Amazon Business to be more B2B-friendly to all businesses as it has evolved. Unique B2B features, which are not commonly found in the conventional Amazon e-commerce platform are easily noticeable. These features are more relevant to the needs of business consumers, giving them ample reason to switch to Amazon Business:
- Quantity discounts: Allowing the business to conduct bulk orders at cost-effective prices.
- Business-only prices: Special prices available only for business buyers, can provide a better buying value than those up for individual sale.
- Multi-user accounts eligibility after a qualification approval process.
- Detailed reports connected to purchasing systems to help better track purchases
- Invoice payments
- Amazon’s business version of Prime permits free, rapid delivery.
You might see a different version of the Amazon website if you join as a buyer or a seller. Regardless, the platform works in a similar way. If you have been using an e-commerce platform for a while, there might be a small learning curve while you adjust to the features and nuances of the Amazon Business platform. When you arrive on a page for a particular product, you will get a familiar interface to the standard version of Amazon.
Amazon Business’s Benefits For Sellers
The main benefit of the Amazon Business for sellers is the expanded ability to make sales from your business customers, regardless of their geographical location. In this platform, the target business customers who want to buy through the Amazon business can be more easily reached. While some business customers may be content to buy products from the traditional Amazon marketplace, many prefer to deal with another business directly through a medium such as the Amazon Business platform.
Some products or product packages found through the Amazon Business platform are available exclusively. Sellers are able to offer certain products which are either unlikely to sell through the traditional platform’s means, or are cost-effective when sold to another business in bulk.
For business customers the reasons are obvious. Getting the supplies from a conventional Amazon platform costs a lot of their money because the purchases would be made at retail prices. On the other hand, the Amazon Business platform offers the benefit of business prices (the discount of purchases to business consumers, regardless of purchase quantity), as well as quantity discounts (tiered discounts that are offered for purchases of large quantities). Brick-and-mortar stores, retailers, resellers, and other kinds of businesses tend to purchase supplies in large quantities at once in the form of bulk orders and to get the best price they can for their purchase. With the features in Amazon Business, sellers will be able to enjoy the total profit for a large order, even with the volume discount, leading to the optimal solution for both sides of the transaction.
Getting Started With Amazon Business As A Seller
Registering as a seller on Amazon Business is not as direct as in the traditional Amazon platform, as certain qualifying standards must be met. This happens through an enrollment process.
The first term to meet is to create a Professional Seller account, something that is a non-issue to most business sellers. There are some standard requirements that business sellers also need to uphold in order to be accepted into and maintain their business with Amazon Business. The application will be reviewed by Amazon officials. If requirements are met and the seller and particular criteria issued by Amazon Business is maintained, the ability to use the B2B platform can continue.
The standards in question deal with keeping the cancelation rates, late shipments, and the order defect rates of sold products to a minimum. The minimum is different from the traditional Amazon seller accounts, however. The following table denotes the notable differences:
Additionally, there is a monthly $39.99 subscription cost to keeping a professional seller account on the Amazon B2B platform active. For most businesses, this is a low price to pay for the ability to reach such a wide seller’s market as can be achieved by utilizing the platform.
Amazon Business is still relatively new, and therefore, it is not yet available across the globe. Launched in the United States in 2015, it has gradually grown to be adopted by more members of the world community on an annual basis. There are currently nine countries that are participating in the Amazon Business platform, however. These include the United States, the United Kingdom, Canada, Germany, Spain, Italy, France, India, and Japan. Being such a young platform though, becoming a part of it early on adds the benefit of not merely acquiring many new customers, but also gathering good reviews. Once more countries join Amazon Business in the years to come, the positive reviews with current or past customers will be a great asset in attracting the attention of many new ones.
Should I Use Amazon Business to Sell My Products?
There are many suppliers, wholesalers, manufacturers, as well as distributors who have turned their premises to the e-commerce site. While they are eager to bring their inventory to Amazon and leverage its power and reach to sell their products, they quickly learn that Amazon Business has more features that are favorable to them. The B2B marketplace is tailored for business consumers and sellers. Therefore there is little reason to back off from the opportunities afforded by it. It is even more enticing to find out that some businesses will solely purchase products for their business through the Amazon Business platform. That along makes the consideration for using Amazon Business worthwhile.
Amazon Business Pros and Cons
Just like many other sites, there are pros and cons to weigh before deciding on using the Amazon Business marketplace. Here are a few to consider:
- Reach buyers who only want to purchase from the Amazon B2B platform
- Reach buyers who prefer to purchase products at a high volume
- Build mutually beneficial, long-term business partnerships with fellow businesses
- Increase visibility and conversions in Amazon search
- Offering opportunity for brands who would not typically sell on the standard Amazon marketplace to reach many new customers
- Amazon Business is only available for some countries (for now)
- Business buyers typically require quotes, so more customer service is naturally called for
- Stricter performance metrics to abide by in order to maintain an active account
Is Amazon Business A Good Fit For Your Business?
The answer is different for everyone, but if you can fulfill high volume orders of products you sell at competitive prices, offer products of value to businesses, can issue quotes and field customer questions, and meet the margin requirements while accounting for tax exemptions, fees, and shipping charges, then you could stand to greatly benefit from the Amazon Business marketplace.