Originally published on December 19, 2016, updated October 30, 2020
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Since business to business (B2B) sales is an industry worth trillions of dollars, it comes as no surprise that Amazon is entering this market. While it is early days for Amazon with their Amazon Business B2B program, this side of the business will only grow as they gain greater knowledge of the industry and creates awareness that they are now players in the B2B world.
The B2B market is still quite traditional in its set up and way of working. Many companies at present are still purchasing resources for their business by placing manual orders over email or phone and even using hard copy catalogs to refer to. That is not to say that everyone is doing it this way, as there are of course some businesses selling B2B via transactional websites.
The exciting part about Amazon tapping into the B2B market is that it can help transform and modernize the industry. Not only is the Amazon Business program offering businesses discounted prices and great delivery options, it is also reducing time spent on paperwork such as managing invoices, dealing with tax exemption requests and sending product specific documentation to customers. Amazon manages all this information on the buyer and seller’s behalf, creating efficiency and simplicity in the overall buying process.
I am often asked whether the Amazon Business program is worth the investment and in most cases I say “go for it if you have the right products." There are no additional fees apart from offering the buyer a further discount and there is no fixed contract. What is there to lose? It is a great way to test the water with minimal risk. Most importantly, because the Amazon Business program is currently small, there is less competition for sellers and greater potential for them to gain market share in their categories before the rush comes.
So how does it work? The process is simple. The Amazon Business program works using your existing Seller Central account; it does not require a separate account and there is currently no additional fee. I use the word "currently" as I am sure that a fee will be introduced as the number of sellers grows. The only fees paid are the monthly subscription, referral fees and any FBA fees, which already apply to non-business sellers. However, the Amazon Business platform has reduced some referral fees in certain categories depending on the value of the order.
Within the Seller Central dashboard, sellers can elect into this program; but before they do so, they need to ensure they are eligible, as with all services Amazon offers. Being eligible means you must be a Professional Seller, have good account health and be achieving all Seller Performance metrics. (FeedbackFive, a feedback management tool from eComEngine, can help you keep your account in good standing.) You must be able to apply a tracking number and packing slip and there must be a purchase order number with every business order package.
Once enrolled in the program, the seller will need to take the following steps:
Once you have taken all of the above steps, it then time to understand what products perform well on the B2B platform. If you already sell B2B, you should have a good understanding as to what items sell well in this industry. If you are new to B2B, you will need to find out which products are your stars and cash cows to ensure you are investing in the right inventory moving forward.
Despite the Amazon Business platform being small compared to Amazon retail, the number of business customers and B2B sellers will continue to grow. It is an industry worth trillions of dollars that is following the steps of online retail where companies, not just individuals, want simplicity. My advice is to get in early before the rush starts to reach an audience you might have never thought to target.
Originally published on December 19, 2016, updated October 30, 2020
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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