What are you going to read about in the article on Amazon Business?
Recent changes in e-commerce affected the preferences of more than just individual customers. In 2021, as many as 50% of companies were purchasing products to run their business via e-commerce platforms. A report by Forrester Consulting for Outreach says that one in five B2B contractors prefer to buy goods online instead of in person. This trend got stronger during the pandemic. The growing popularity of e-commerce among this customer group is not only related to changes in buying habits caused by lockdown, but also to a generational transformation in company structures.
Consequently, e-Commerce platforms have been adapting their services to the preferences of customers, including business ones.
As the undisputed leader among marketplaces, Amazon has its own offer aimed at companies that want to sell their products to other businesses but not to Amazon, i.e. operate under the Seller model. We are talking here about the opportunity to join the Amazon Business programme.
Wondering which model on Amazon to choose? Find out the differences between them and how you can combine their benefits here.
Amazon Business service was launched in 2015 as the platform’s next step in establishing a larger customer base. Currently, it is available in the Italian, French, German, Spanish, UK, United States, Indian, Canadian, and Japanese markets.
The idea behind the Amazon Business model was simple: let’s make one place where companies from different sectors and organizations can find the products they need for their daily operations. It is fair to say that Amazon has achieved this goal. The model makes it very easy to create orders for anyone who uses it. At the same time, shoppers can benefit from all the possibilities Amazon offers to private customers. Business customers can benefit from additional facilities not available to ‘ordinary’ shoppers. And the same applies to sellers who opt for this service.
So let’s start by discussing the advantages of Amazon Business for business customers. Why should they use this programme?
Firstly, thanks to the benefits offered by the platform, which include:
These solutions have encouraged more than 5 million businesses worldwide to use Amazon Business. Furthermore, more than 80 of them are listed on the Fortune 100 list.
According to Statista.com, Amazon Business was the most popular B2B e-commerce platform in 2022. Namely, 36% of all the respondents said that this marketplace was the best place to shop online.
Let us now discuss the topic of dedicated discounts in more detail. If a B2B buyer finds a suitable product and plans to purchase it in larger quantities, they can request an individual quote, i.e. Quotes. Subsequently, all the sellers who have the product in their inventory can respond by sending a quote. Then, all the responses are then collected and sent back to the buyer. In the next step, the buyer chooses the most attractive proposal from among them. It’s one of the biggest advantages available on Amazon for business customers.
Nowadays, it is not only the quality of the goods on offer that is important, but also the way in which they are sourced. That is why Amazon is committed to helping businesses that want to be transparent about their sourcing and purchasing decisions. Business customers have the option of filtering the results by the people running the company. As such, they can easily search for businesses managed by:
– disabled people.
– minorities / black people,
– LGBT+ persons.
In this way, the end customer is assured that they are buying from a company that takes social issues seriously and conducts its business responsibly. This is also an opportunity for the sellers who meet the above criteria. They can improve their position and align with the customer.
As we have already demonstrated above, Amazon Business offers several benefits to buyers. However, it is also worth discussing the numerous opportunities offered to sellers.
Sellers can take advantage of the following benefits offered by Amazon Business:
Let’s start with a simple piece of information: every seller listing their offers on the platform also makes them available to business customers. Currently, over one million buyers on Amazon are B2B customers, and this number is growing. It is important to ensure that our listings are attractive and highly visible. How can we do this?
It’s worth adding business prices to our listings to start the whole process. These prices will show up on our listing page when a B2B customer opens it. If we use Amazon VAT Calculation Services, this will be the net price. By simply signing up for VAT Calculation Services, you will be able to automatically invoice your business customers when they pay for their purchase. A benefit like this makes the offer more attractive as well.
Businesses can be attracted by offering them discounts when they purchase a certain number of items. On Amazon, sellers can make an offer that reduces the price by a certain percentage when an order is made for a minimum of five items. This encourages shoppers to buy larger quantities at a time. In turn, it also allows the seller to sell the item faster.
It is also worthwhile to regularly respond to the Quotes from buyers. If we submit a good offer, we increase the likelihood that our proposal will be chosen.
It is important to remember that not every seller will have the opportunity to fully make use of the B2B model on Amazon. If your product offering is personalised or your level of stocking does not allow you to handle bigger order volumes, it is worth focusing more on B2C sales. However, all other sellers should be interested in this opportunity and assess whether it suits their business objectives. Remember—it will enable you to establish a relationship with the business client.
Amazon Business is a solution that meets the needs of a growing B2B audience and the new trends in e-commerce.
Moreover, its skilful use within the Seller model brings great benefits to sellers. It allows them to obtain regular orders for bulk quantities without having to receive an invitation to the Vendor programme.
It is worth mentioning again that Amazon Business is the most popular B2B marketplace among buyers. For this reason, we recommend that businesses consider this option. If our business operates in a way that matches the model, this is a great opportunity to increase sales. We should not waste it!
Are you interested in starting to use Amazon Business, but require help? Fill in the form, and let’s talk!