Many consumers prefer to support small businesses when it's an available option. In fact, research from ActiveCampaign shows that 56% of consumers prioritize shopping with small businesses.
In comparison, consumers often favor Amazon because of the built-in convenience it offers. If they could take advantage of Amazon’s shipping speeds while also supporting small businesses, it would combine the best of both worlds.
Of course, as many Amazon sellers know, a lot of the brands on the platform are small businesses. Customers just need some way to identify them. Let's explore how to get an Amazon Small Business Badge on your listings.
The Amazon Small Business badge gives Amazon a way to highlight companies on the platform that qualify as small businesses.
The Small Business badge shows up both on the search results page, at the bottom of each relevant listing, and on the listing page itself beneath the product details.
Amazon uses the Gartner definition of small business to determine who qualifies for the Small Business badge: businesses with fewer than 100 employees and less than $50 million in annual revenue. In addition to meeting the definition of a small business, a brand must be registered in the Amazon Brand Registry or participate in the Handmade program.
According to Amazon's 2022 Small Business Empowerment Report, more than 60% of sales in that year came from independent sellers, most of whom are small and medium-sized businesses.
For small businesses selling on Amazon, there are a few main benefits to getting a Small Business badge.
Many consumers want their spending choices to match their values (at least some of the time). A Small Business badge gives your listings a small way to stand out in search results and attract the interest of customers who care about supporting small businesses.
If a customer is debating between two similar products and notices one has the small business badge, that could be the tipping point in their decision.
In addition to getting the badge itself on your listings, once Amazon knows to identify your brand as a small business, you could be included in any small business promotions it offers.
For example, Prime Day 2022 included a Support Small Businesses to Win Big sweepstakes, which led to more than $3 billion in sales for small businesses on the platform.
Amazon also has a section on its website called "Support Small" which is solely devoted to promoting small businesses. Customers wanting to specifically seek out small businesses on the platform can use the main search bar to quickly and easily find them.
For customers who also care about shopping local, the section also groups product listings by region.
The customers that make their way to this part of the website are likely to be those that care most about supporting small and local brands. Making sure your products show up there means reaching more people likely to buy.
Related reading: Amazon Business Planning: Forecasting to Fulfill Your Goals
You’re probably used to most Amazon programs requiring extra fees, but the Small Business badge is a nice exception. You don’t have to pay anything to get it, you just need to demonstrate that you qualify.
If you’re confident that you qualify as a small business and are ready to start taking advantage of the Small Business badge, signing up is easy. Simply contact Selling Partner Support to let them know you’re interested. Provide them with your:
The Amazon team will review the information to determine your eligibility. You can expect a reply within 10 business days.
Consumers don’t just feel good about supporting small businesses, many prefer spending money with black-owned businesses as well. In another ActiveCampaign survey, 60% of consumers said they give priority to black-owned brands.
In addition to the Small Business badge, Amazon also offers a Black-Owned Business badge for relevant brands that shows up right below the Small Business badge.
To get a Black-Owned Business badge, your business must have a minority-owned business registration or certification (such as one from the National Minority Supplier Development Council, U.S. System for Award Management, or U.S. Small Business Administration). Just upload your registration or certification to your account in Seller Central and choose Black American Owned as a sub-group.
So much of the time, it feels like the odds are stacked against small businesses. The Amazon Small Business badge is one small way to take advantage of your status to reach more customers and get an edge in the marketplace.
If you're a black-owned business, you should also be taking advantage of this opportunity to stand out and potentially earn more.
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