Amazon has a B2B (Business to Business) subsidiary called Amazon Business, one of the fastest growing B2B platforms in the world. The latter offers the same seamless service as its consumer branch, with additional features tailored to business needs.
To give a sales team access to hundreds of millions of products on the Amazon Marketplace, you need to create an account on Amazon Business. This platform offers the possibility to set spending limits, monitor purchases, access discounts on multi-unit purchases, obtain pallet deliveries. This article explains everything you need to know to outperform the competition and sell B2B through Amazon Business.
Amazon Business: overview
Amazon Business is a B2B version of Amazon’s consumer business. That is, instead of a company that sells to the public, it presents itself as a market for companies of all sizes. Indeed, this space offers access to “hundreds of millions” of commercial products from “hundreds of thousands” of professional sellers. Amazon Business was launched in the spring of 2015. In 2018, Amazon said it was already generating $ 10 billion in sales on an annual basis.
Joining this service is free. In addition, it offers a number of unique features that can meet the needs of organizations, entrepreneurs and startups. These features include multi-user accounts and volume discounts, among others.
Amazon Business also has aSubscription and Business Prime which, for an annual fee, unlocks additional benefits for subscribers. It works the same way regular Amazon users have Amazon Prime.
Companies that use Amazon Business
Amazon Business has several types of customers among its ranks, including:
- 80% of the top 100 educational organizations in the enrollment phase;
- 55 of the Fortune 100 companies;
- More than half of the 100 largest hospital systems;
- Over 40% of the 100 most populous local authorities.
Additionally, Amazon Business is now available to companies registered in the following countries:
Amazon Business: main features
Prices reserved for companies
Amazon Business allows you to take advantage of it discounts on over five million products. Including quantity discounts on purchases of multiple units.
Products only for companies
Amazon Business provides specific products for businesses, regardless of whether:
- concierge services,
- office supplies,
- supplies for restaurants,
- health care or hotels.
Amazon Business allows you to search and do business with professional salespeople with specific characteristics (small businesses, women, minorities, etc.).
Once you have created a free Amazon Business account, it becomes possible to connect an entire team. Therefore, purchasing groups can be created based on the structure of the company.
With this feature, Amazon Business allows not only to manage business purchases, but also to have better visibility on how funds are spent.
The acquisition cards are a payment methods that can be shared by a few users or by the whole team. It is also possible to obtain Amazon Corporate credit, with the possibility of paying by purchase order.
Integrate purchasing systems
Customers are interested in Amazon as a perforation option. Amazon Business is catalog-enabled on over 90 systems.
This formula offers a free same day deliveryin a day or two for eligible items and other benefits.
If an order is eligible for combined shipping, one of Amazon’s couriers will deliver on a pallet to the receiving dock.
Reports and analysis
Thanks to practical graphics, the user can follow and control their expenses.
Tax free purchases
Amazon Business makes it easy to check your VAT and credit with automated VAT invoicing and displaying VAT-free prices.
Amazon Business: how to join this platform?
To join Amazon Business, you must go to www.amazon.com/business. Then, click the “Create a Free Amazon Business Account” button. To do this, you need to enter an email address, username and password.
Additionally, Amazon requires company information to facilitate verification. Here are some of the required documents:
- The federal tax code
- A valid credit card
- A commercial license
- A telephone number
- bank account number
- An electricity bill.
Amazon will then check for up to 24 hours. Please note that for any Amazon Business registration with an email address already linked to a standard Amazon account, you will be prompted to do so update this account.
FBA or FBM: which model to choose?
The logistics management Shipping is one of the first important decisions you need to make when running an Amazon Business business. There are two basic methods: the Fulfillment by Amazon (FBA) model and the Fulfillment by Merchant (FBM) model.
Fulfillment by Amazon – Fulfillment by Amazon
With this method, Amazon does most of the work. The company stores, packages and ships the products and also takes care of customer service.
However, FBA sellers must ship the inventory to Amazon, which takes care of the rest. The Fulfillment by Amazon option it costs much more than the FBM optionwith a monthly subscription of 35.66 euros.
FBM – Merchant fulfillment
This method of selling on Amazon allows the customer to take full control of their order. With FBM, the seller stores, packages and ships their inventory.
This option is especially popular with sellers, as they have full control over how items are packed and shipped. FBM sellers pay fixed amount of € 0.88 for each sales transaction.
Amazon Business: How Does It Work?
Amazon business it does not have a front window accessible from a web address in the browser. As mentioned above, you need to create a free account and then log in to see Amazon Business and all the items available there. The process to get started is very simple, as Amazon Business looks and works almost like the classic Amazon site.
Account and activity settings
To access the free Amazon Business account, simply click on the button representing the user’s name. This action provides access to a drop-down menu containing the account settings. Note that Amazon Business users have additional settings, specifically:
- business settings, including adding members, configuring approval flows, managing payment options, and entering tax exemption information.
- business analytics include viewing reports, invoices and item details
- the ability to manage suppliers, the latter allows you to search and save your favorite suppliers.
Browse and buy
Once logged into your Amazon Business account, the familiar Amazon search bar appears at the top. To find a specific article, simply enter a keyword or product number. When trying to search for an item, such as a printer, you can also filter the results to the left, like on classic Amazon. However, as this is Amazon Business, items can also be filtered based on Business Prime eligibility, vendor type, and vendor certification.
The Amazon Business checkout process is almost identical to the regular Amazon checkout process. Just add an item to your cart, choose if it is a recurring shipment. Then, you need to go to the shopping cart to confirm the shipping details, payment method and place the order.
To review your order after placing it, go to your account settings. Next, you need to click directly on the Orders menu option or select Business Analysis. This option allows you to get a detailed information report related to shipping, product and seller.
Amazon Business Prime: what is it?
Business Prime is a paid subscription program for Amazon Business customers who want free shipping on over 100 million items, plus other benefits. Enhance the procurement experience, with the ability to analyze spending patterns and create policy rules that guide employees towards approved products. There is also a 30-day free trial.
Business Prime functionality
Business Prime includes:
- Fast turnaround times: same day shipping, one and two day shipping, and consolidated shipping options.
- Access to exclusive first day offers.
- Detailed analysis of spending trends to help plan and increase market share.
- Extended terms for payment by invoice (extended payment terms to 45 or 60 days).
- Guided purchases (some suppliers and products can be marked as favorites).
- The Amazon Business American Express card (credit card with no annual fee).
When it comes to payments and credit checking, there is another completely free option for account holders. The new payment method “Pay by invoice” provides billing invoices for orders. The company then has access to terms like Net30, which gives them more time to pay their invoices (30 days after the invoice date in the case of Net30).
Amazon Business: its importance
Develop B2B business and increase market share
Wholesaling is an obvious way to increase revenue. Amazon Business provides access to a broad platform to practice wholesaling to other businesses.
Thanks to the huge volume of traffic that comes with it, the company benefitsgreater visibility for its commercial offers. Setting up this type of sales profile can take years. But with the potential number of shoppers visiting Amazon Business, you can instantly connect with the steady stream of customers on the platform.
All sales come with payments, but one of the main problems for all businesses, regardless of size, is cash flow. With Amazon Business, the credit check feature eliminates wasted time searching for invoices or waiting to be paid.
Amazon Business pays instantly. This eliminates the need to chase customers for payments, see reminders, and generate unwanted extra documents and emails.