Amazon B2B has changed the way businesses operate in the marketplace by responding to the specific needs of B2B merchants and customers. The essence of selling on Amazon B2B is that sellers can offer products to both retail customers and business buyers.
By 2023, Amazon Business gross sales will exceed $52 billion, according to sources. Also, according to their financial reports, it is Amazon’s fastest growing business unit.
With over a million customers, Amazon Business has become a viable option for manufacturers, merchants, and distributors.
As a seller or brand owner, you should explore this opportunity and develop a B2B strategy to scale your Amazon business.
What is Amazon Business?
Amazon Business is the B2B version of the retail giant’s e-commerce platform. It is primarily aimed at business customers who require multiple user accounts, additional payment and credit options, as well as Amazon’s low prices, wide product selection, and expedited shipping options.
Amazon Business aims to create a business-friendly version of its standard marketplace. Amazon wants sellers to sell products to both consumers and businesses using the same platform. In addition, merchants have the flexibility to offer different products and prices for business buyers.
Should you consider Amazon B2B opportunities?
With a huge share of customer base and web traffic, Amazon Business attracts business owners. Along with that, Amazon offers a great user experience and fast shipping, which are great additions to your own B2B online store.
If you look closely, it may not be so simple. Amazon Business can be a great choice for some sellers and not a great option for some. It depends on the Amazon niche you’re selling in, the competition in your industry, your business model, and the flexibility to comply with Amazon’s limits on sellers.
I have an active B2B business. Do I need Amazon Business?
Making more money from sales is a game for most Amazon sellers. You may be successfully selling to both consumers and companies right now. However, Amazon Business will give you a wider reach for your business.
In general, some businesses may only use Amazon Business for their products, while some may have no choice but to buy from Amazon B2B, as their companies offer. So if you’re selling in a B2C marketplace and business owners love your products, you shouldn’t be missing out on sales.
Amazon Marketplace is a popular destination for most consumers. Similarly, their B2B platform is suitable not only for SMBs, but also for Fortune 100 companies. Therefore, before jumping on the bandwagon, you should carefully weigh the pros and cons of selling on Amazon Business for B2B. I’ll explain this in a minute.
How to start selling on Amazon B2B?
Getting started with Amazon Business is easy, whether you’re an existing marketplace seller or a new one.
- Register your professional seller account with the Amazon sales center. If you’re already selling on Amazon, add business features through the seller’s central platform.
- Pay pay account fees, FBA fees, referral fees, etc.
- Create a business profile. Describe your business, add credentials, certificates, and other important information relevant to your business customers.
- Add your product portfolio. With Amazon Business, you can add information such as brochures, how-tos, white papers, and other security certifications.
You are now set to sell your products with promotional ads, customized discounts, and activate additional services such as installation if applicable.
- Upon registration, you must agree to maintain higher performance levels than Amazon’s standard requirements.
- You also need to process the relevant Amazon tax credits, provide a shipping tracking number for each order, and include a packing list with each package with a customer-provided purchase order number.
Advantages of Amazon B2B sales
The main benefit of signing up with the Amazon B2B platform is that you get more sales from the business. Along with this, you have many benefits.
Huge market opportunities
Amazon Business has a notable customer base. In 2019, it included Fortune 100 companies. In addition, by 2023, the company is expected to reach $31 billion in revenue and $52 billion in gross sales (source). Small and medium B2B businesses can see the information almost instantly and increase their visibility once they become part of an Amazon Business.
Companies prefer to buy the entire range of products in one place. It ranges from furniture and electronics to stationery and toys and more.
Recurring orders
Typically, business buyers regularly purchase a set of items over time. With Amazon Business, the company supports this practice with the Business Prime feature. Thus, it encourages buyers to create repeat orders. For example, if you sell tool replacement parts, personal protective equipment, or recurring items, Amazon Business will continue to ship those orders to you.
Ease of use
You can start your B2B business in just a few hours by registering your seller account with Amazon Business. You do not need to have your own infrastructure or website, which requires a significant upfront cost in terms of money and time.
Amazon business support
Amazon Business provides the necessary support that B2B buyers are looking for. It includes multi-user support, business account payment options, account management, and more. Amazon Business also supports merchants with fulfillment options such as return management, customer service, product shipping and warehousing, complaint management, and more. Amazon also offers technical support. during setup. While any B2B e-commerce provider will offer the same, Amazon offers great content and the community of big sellers will be able to solve the problems other sellers are having.
Alternatively, you can also take advantage of Amazon’s advertising efforts.
The best part about selling on Amazon is that Amazon is a trusted brand for shoppers, whether B2B or B2C.
In particular, business buyers are always wary of dealing with new suppliers due to large orders and the associated uncertainty. However, with the Amazon brand, customers are willing to buy through the platform. Thus, you will benefit from the Amazon brand.
Summing up
B2B selling is a huge benefit for Amazon sellers of any size, especially if businesses only buy from Amazon. If you’re already a B2B seller and qualify for Amazon, signing up for Amazon Business is easy.