The growth of B2B e-commerce projected to increase to $1.2 trillion by 2021, and currently, Amazon Business has focused on providing a convenient way supplying businesses with the items that may not have suppliers or predictable budget lines attached. The B2B market is responsive to the broad selection, robust product pages, and convenient online experience as consumers. Amazon Business provides suppliers to access over 85,000 sellers with hundreds of millions of products. Amazon Business gives them the features, such as payment methods and shipping addresses, approval workflows, and reporting options, depending on the business needs.
Amazon Business sells all types of products from industrial supplies to the lab and medical equipment. Amazon ease of use and familiarity makes it easy for buyers to perform transactions. CEO Jeff Bezos has made it evident that Amazon Business is a priority as they look to continue to expand and see it as direct competition with the competitors.
Companies registered on Amazon Business have eligibility to get discounts on a wide variety of items. With a full suite, all sizes of businesses can find new ways to engage professional customers in supply chain relationships. It allows companies to cater to the specific requirements of business by providing features optimized for B2B transactions, such as:
1) Exclusive Business SKUs: Suppliers could create listings only for companies and visible only to business buyers.
2) Business Pricing and Quantity Discounts: Discounted business prices and tiered quantity discounts are available for the suppliers in the Amazon Business Seller Program.
3) Tax Exemption: Amazon has extended the tax exemption program to sellers. Suppliers could provide tax exemption for qualified purchases.
4) Seller Credentials: As a seller, suppliers could also add credentials such as ISO 9001certified, small business, women, minority, and veteran to the profile.
5) Business Product Identifiers: Suppliers can provide manufacturer and distributor part numbers (MPN/DPN) to make the products easily discoverable by customers or National Stock Numbers (NSN) for purchases from government procurement.
One of the biggest roadblocks is to adopt B2B e-commerce is the complexity of B2B purchases, such as discounts, bulk packaging, invoicing, size variations. With Amazon Business, suppliers could restrict offers to businesses that are deemed by Amazon Verified Business Customers, and suppliers could configure product selection and offers. If suppliers need help with logistics or fulfillment, Amazon Business can be partnered with to assist, and it will provide analytics and customer support.
Amazon Business is critical for any B2B supplier’s toolkit for increasing revenue, growing market share and finding new customers. It has been developed to adopt B2C experiences while tackling the challenges and complexities of the B2B purchase. Besides, there are lessons within the business model for any supplier looking to sell directly to a business buyer online: provide an easy-to-use, compelling online experience that supports complex purchases, and suppliers can emphasize on the shift in purchasing behavior.