If you want to scale your organisation through B2B marketplaces, Amazon Business should be part of your strategy. In this article you will learn what Amazon Business is, how it works and why it offers clear advantages compared to the standard Amazon platform.
What is the difference between B2B and B2C marketplaces
A marketplace is a digital environment where supply and demand meet. Platforms such as Bol.com or Amazon are traditionally B2C focused. Multiple sellers offer products to individual consumers who purchase for personal use.
Alongside B2C platforms there are also B2B marketplaces where businesses buy from other businesses. Historically this happened through physical wholesalers. Today these workflows move rapidly online. Amazon Business can be seen as the modern wholesale experience. It connects professional buyers with professional sellers and simplifies bulk purchasing.
What is Amazon Business
Amazon Business is Amazon’s dedicated B2B marketplace. It works similarly to the regular Amazon platform but is designed specifically for business needs. With a business account you gain access to hundreds of thousands of B2B sellers and a broad range of professional products.
Amazon Business has grown rapidly over the last years. In 2018 it already generated ten billion dollars in revenue and continues to scale quickly.
Business users benefit from
- bulk pricing and volume discounts
- multiple users within one business account
- professional product categories
- integrated reporting and budget management
If you want to understand how Amazon Business fits into your overall marketplace strategy, our consultants can guide you through the options.
Benefits of Amazon Business
Buying and selling through Amazon Business offers a wide range of advantages. Below you will find the most important ones.
Benefits compared to the standard Amazon platform
- Business pricing: Amazon Business provides special B2B pricing across millions of products which is especially relevant for companies purchasing in bulk.
- Professional product categories You will find items that do not appear on the consumer platform. Think of office supplies, medical equipment, tools or hospitality essentials.
- Seller profiles with specific attributes: You can filter for businesses with certain characteristics, such as local sellers or women owned companies.
- Business Prime: Subscribers receive fast and often free delivery, sometimes even on the same day.
- Reporting and analysis: All spending can be tracked and analysed within the platform. Ideal for procurement and finance teams.
- Invoices with tax information: Useful for accounting and essential for correct VAT reporting.
- Deferred payments: Amazon Business offers extended payment terms of forty five to sixty days which supports healthy cashflow management.
- Preferred supplier lists: You can save reliable sellers for future orders which speeds up the purchasing process.
- Business delivery: Amazon delivers large orders on pallets directly to your door, eliminating the need to visit physical wholesalers.
How Amazon Business helps you increase revenue
Amazon Business helps companies save money through bulk pricing and increases financial flexibility through deferred payments. It also saves time through pallet delivery and streamlined procurement workflows.
For sellers the platform unlocks a new type of customer. If your products are relevant to professional buyers, Amazon Business can help you reach a high value audience that purchases frequently and in larger quantities than consumers. This can lead to significant and predictable revenue growth.
How to sign up for Amazon Business
You can create a business account in five simple steps.
- Go to amazon.com/business.
- Select Create a free Amazon Business account.
- Enter your name, email and password or use your company details.
- Verify your business information such as address, VAT number and registration details.
- Amazon reviews your application which usually takes up to twenty four hours.
After approval you can start buying or selling on Amazon Business immediately.
Conclusion. Amazon Business is becoming the modern wholesale solution
Amazon Business is an efficient platform for companies that want to purchase in bulk, track spending and save operational time. With a wide assortment, professional suppliers and powerful business features it is a strong alternative to traditional wholesalers.
If you are a B2B seller, Amazon Business is also a valuable sales channel. You can reach professional buyers directly and grow your revenue with high intent customers.
Want to know how Amazon Business fits into your marketplace strategy? We are ready to help you.
