Amazon Business - Get in Early Before the Rush

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.

Modernizing B2B Practices

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, but 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.

Test a New Market

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.

Eligibility Requirements

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.

Getting Started

Once enrolled in the program, the seller will need to take the following steps:

1. Pricing - Set up pricing either via a bulk upload or directly in the Manage Inventory section in your account. You will see a column called Business Pricing where you can manually add in this data and apply quantity discounts. Note that you can set products up solely for Amazon Business customers if you feel certain products are only applicable to the B2B market.
2. Seller Profile - Customize your seller profile, a page where you can add in all the important information about your company that a customer may preview before selecting you as a supplier. This information could include company values or mission statement, seller logo, a featured image showcasing the business or product range, type of business activity, annual revenue, year established, and the number of employees.
3. Company Credentials and Certifications - Add in any company credentials or certifications you may have. For example, maybe you are a veteran-owned business and have an ISO certification. Under Settings, Your Info, and Policies, you will have a section with a list you can choose from.
4. Enhanced Content - Make use of the enhanced content option where you can upload content for user guides, spec sheets, and other relevant product-specific documentation for the business customer to view and download.
5. Amazon Tax Exemption Program - To easily manage tax exemptions, you can enroll in the Amazon Tax Exemption Program (ATEP). The program applies for eligible tax exemptions at the point of sale as opposed to having to make a refund after the sale. You as a seller will be able to obtain any tax exemption certificates directly from Seller Central.

Plan for B2B Success

Once you have taken all of the above steps, it is then time to understand what products perform well on the B2B platform. If you already sell B2B, you should have a good understanding of 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.