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Amazon B2B Services: What Sellers Need to Know
Business e-commerce is growing exponentially every year and is expected to surpass the $1 trillion mark by 2021. With online buying taking precedence over how American businesses function, the scope of B2B procurement in the e-commerce space is huge. Just take a look at Amazon Business. The marketplace, geared toward corporate buyers, is on pace to generate more than $10B in sales volume this year. Riding on the heels of its B2C success, Amazon rolled out B2B services back in 2015. Since then, it has attracted over one million customers and now dominates a large portion of the B2B market. With so many transactions taking place on the platform, sellers and brands looking to accelerate their business need to seriously consider using Amazon’s B2B platform.
What Is the Amazon B2B Platform?
Amazon B2B, also known as Amazon Business, provides purchasing solutions for registered businesses to buy business supplies on Amazon. Through the platform, businesses of any size, wholesalers, and manufacturers can buy and sell to each other and receive discounts based on quantities ordered. The platform facilitates the management of business operations, giving administrators control over account users and features. The primary administrator can manage authorized users, payment methods, shipping addresses, workflows, and reporting options according to the business’s needs.
Who Is Amazon B2B Suitable For?
Amazon’s B2B services give users access to over 85,000 business sellers and business-only pricing on approximately nine million products. As Martin Rohde, director of the commercial vertical at Amazon Business notes, “we provide easy access to hundreds of millions of products – everything from IT equipment to janitorial supplies – to businesses of all sizes and across industries.” Verticals across the board like retailers with appealing inventory, manufacturers, wholesalers, and distributors seeking to expand their B2B marketing and sales repertoire, as well as government, education, healthcare professionals, and NGOs looking to become more profitable, can leverage Amazon B2B for their gain.
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What Services Does Amazon B2B Offer?
Amazon B2B is continuously entering new segments and growing its purchasing and selling services, streamlining the online transaction process. “We’re trying to reduce the time it takes to buy and sell supplies,” says Prentis Wilson, VP of Amazon Business. How exactly does this translate in terms of service offerings for buyers and sellers?
Key features of Amazon B2B services include:
Business accounts: A seller can add thousands of individual buyers or groups of buyers authorized to place orders under the same account to monitor spending patterns and behaviors of each buyer.
Buy through procurement software apps: A seller can buy from Amazon B2B through 31 procurement software apps. This allows a seller to link from such apps directly to a “punchout” catalog of authorized products on Amazon B2B.
Approval workflow: A seller can manage the workflow process better by routing order approvals among a buyer’s superiors.
Where Does Amazon B2B Operate?
Amazon B2B is expanding globally and currently operates in eight different countries:
Is Amazon B2B Right for Your Business?
Amazon B2B services are a very good fit for sellers and brands who have the ability to scale their sales volume and the need to increase profits strategically. By signing up to the Amazon B2B services program, sellers can gain more exposure to potential customers who buy in large volumes and in turn achieve more buying power with their suppliers. Amazon B2B is the ultimate realm for B2B e-commerce, once exclusive to only large enterprises, now accessible to sellers of all sizes. To sign up for the program, click here.
At Feedvisor, our pricing optimization solution includes Amazon Business repricing. Given that Amazon Business offers corporate businesses discounts based on quantities of products ordered, our solution allows you to set up six different discounts based on quantity. Additionally, MAP restrictions — which are enforced by the manufacturer or brand in a given scenario — may not need to be adhered to in certain instances with Amazon Business, which allows for more intricate pricing optimization and the opportunity for sellers to be more competitive. Given that Amazon is a price-driven platform, it is definitely worthwhile for sellers on Amazon Business to ask their brand or manufacturer supplier if they can sell at a discount on the specific marketplace.
Learn what Feedvisor can do for your business.
When you partner with Feedvisor, you automatically receive access to our true, AI-driven technology and hands-on team of e-commerce experts. Contact one of our team members today to learn more about our end-to-end solution for brands and large sellers on Amazon, Walmart, and e-marketplaces.