Amazon has a B2B (Business to Business) branch 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 offer products to a sales team access to hundreds of millions of products in the Amazon Marketplace, an account must be created on Amazon Business. In fact, this platform offers the possibility of setting spending limits, monitoring purchases, accessing discounts on multi-unit purchases, obtaining deliveries by pallets. This article explains everything you need to know to get ahead of 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 selling to the public, it presents itself as a marketplace for businesses 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 established in the spring of 2015. In 2018, Amazon said it was already generating $10 billion in sales on an annual basis.
Membership in this service is free of charge. In addition, it offers a set 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 ae Business Prime Membership which, for an annual cost, unlocks additional benefits for subscribers. This works the same as regular Amazon users on Amazon Prime.
Companies using Amazon Business
Amazon Business has different types of customers in its ranks, including:
- 80% of the top 100 educational organizations in the process of enrolling;
- 55 of Fortune 100 companies;
- More than half of the 100 largest hospital systems;
- More than 40% of the 100 most populous local authorities.
Additionally, Amazon Business is now available to businesses registered in the following countries:
Amazon Business: Key Features
Amazon Business allows you to benefit from discounts on more than five million products. Including quantity discounts on multiple unit purchases.
Amazon Business provides specific products for businesses, whether:
- concierge services,
- office supplies,
- restaurant furniture,
- healthcare or hotels.
Amazon Business allows you to search and make deals with professional sellers with specific characteristics (small businesses, women, minorities, etc.).
Once a free Amazon Business account is created, it becomes possible to connect an entire team. Thus, purchasing groups can be created according to the structure of the company.
With this feature, Amazon Business not only makes it possible to manage company purchases, but also to have better visibility on how the funds are spent.
Acquisition cards constituting a means of payment which can be shared by a few users or by the whole team. In addition, it is possible to obtain Amazon Corporate credit, with the possibility of paying by purchase order.
Integrate purchasing systems
Customers are required by Amazon as a punching option. Amazon Business is catalog-enabled on over 90 systems.
This formula offers a free same day deliveryin one or two days for eligible items, plus other benefits.
If an order qualifies for combined shipping, one of Amazon’s carriers will deliver on a pallet to the receiving dock.
Reports and Analytics
Thanks to graphic practices, the user can follow and control his expenses.
Amazon Business simplifies VAT and credit control with its automated VAT invoicing and display of VAT-free prices.
Amazon Business: how to join this platform?
To join Amazon Business, you must go to www.amazon.com/business. Then, click on the button “Create a free Amazon Business account”. To do this, you must enter an e-mail address, a user name and a password.
Additionally, Amazon requests company information to facilitate verification. Here are some of the required documents:
- The federal tax identification number
- A valid credit card
- A commercial license
- A phone number
- Bank account number
- An electricity bill.
Amazon then verifies for up to 24 hours. Note that for any Amazon Business registration with an email address already linked to a standard Amazon account, you will be asked to upgrade this account.
FBA or FBM: which model to choose?
The logistics management shipping is one of the first important decisions to make for running business on Amazon Business. There are two basic methods namely the Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) model.
Fulfillment by Amazon – Fulfilled by Amazon
With this method, Amazon does most of the work. The company stores, packs and ships products, and also takes care of customer service.
However, FBA sellers must ship the inventory to Amazon, which takes care of the rest. The FBA Option costs significantly more than the FBM optionwith a monthly subscription of 35.66 euros.
FBM – Fulfillment by Merchant
This method of selling on Amazon allows the customer to take full control of their order. With FBM, the seller stores, packs and ships their inventory.
This option is especially popular with sellers, as they have full control over how items were packaged and shipped. FBM sellers pay fixed fee of 0.88 euro for each sale transaction.
Amazon Business: how does it work?
Amazon Company does not have a front window accessible from a web address in the browser. As mentioned earlier, one must create a free account and then log in to see Amazon Business and all the items available there. The process of getting started is very simple, as Amazon Business looks and functions the same as 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 account settings. Note that Amazon Business users have additional parameters, in particular:
- business settings including adding members, setting up approval flows, managing payment options, and entering tax exemption information.
- business analytics include viewing reports, invoices and item details
- the possibility of managing suppliers, the latter makes it possible to search for and save favorite suppliers.
Browse and buy
Once logged into the 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, it is also possible to filter the results on the left, as on classic Amazon. However, since this is Amazon Business, items can also be filtered based on Business Prime eligibility, seller type, and seller certification.
The Amazon Business checkout process is almost identical to the normal Amazon checkout process. Just add an item to the cart, choose if it’s a recurring delivery. Then, you have to go to the shopping cart to confirm the shipping details, payment method and place the order.
To review the order after placing it, just go to the account settings. Thereafter, you must click directly on the Orders menu option or select Business analysis. This option allows you to get a detailed information report relatives to shipping, product and seller.
Amazon Business Prime: what is it?
Business Prime is a paid membership program for Amazon Business customers who get free shipping on over 100 million items, plus other benefits. It improves the procurement experience, with the ability to analyze spending patterns and create policy rules that guide employees to approved products. There is also a 30-day free trial.
Business Prime Features
Business Prime includes:
- Fast delivery times: same-day, one- and two-day shipping, and consolidated shipping options.
- Access to exclusive day one offers.
- Detailed analysis of spending trends to help plan and increase market share.
- Extended conditions for payment by invoice (extended payment terms of 45 or 60 days).
- Guided purchases (it is possible to mark certain suppliers and products as preferred).
- 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 such as 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 activities and increase market share
Wholesale is an obvious way to increase revenue. Amazon Business provides access to a vast platform to practice wholesale sales to other businesses.
Thanks to the resulting huge volume of traffic, the company benefits fromgreater visibility for its commercial offers. Setting up this type of sales profile can take years. Or with the number of potential buyers visiting Amazon Business, one can instantly connect with the constant flow of customers on the platform.
All sales come with payments, but one of the main issues 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 get paid.
Amazon Business makes the payment instantly. So there’s no more chasing up customers for payments, seeing reminders, and filing up extra paperwork and unwanted emails.