The Amazon marketplace is a popular destination for online sellers, business owners, and entrepreneurs. Regardless of the level of your skills and the size of your business, Amazon consistently provides opportunities for online sellers.
In addition to Amazon reselling and private labeling, business owners can also explore Amazon Business as an alternative. In this article, we will discuss some of the fundamental concepts of Amazon Business and some important insights that Amazon Business sellers should be aware of.
What Is Amazon Business?
In 2015, Amazon introduced Amazon Business. It is a business-to-business (B2B) marketplace that addresses the bulk purchasing requirements of businesses and organizations, including but not limited to office supplies and other goods. The eCommerce giant leveraged its considerable technology, infrastructure, and expertise to revolutionize the procurement landscape for business customers.
This transformation enabled the business platform to serve various business customers and organizations. Fast-forward to the present, Amazon continues to reach millions of business customers, evolving into one of the largest B2B platforms in the world.
Venturing into the Amazon Business marketplace requires sellers to enroll in the Amazon Business Seller Program. The Amazon Business Seller Program is designed to aid businesses in expanding their sales within the platform. It offers strategic features for business owners and entrepreneurs to capitalize on the vast potential of Amazon Business and drive their growth.
Amazon Business sellers can leverage the seller program’s resources and features to help them effectively tap into the B2B market and cater to the unique needs of registered business customers.
Why Should You Sell on Amazon Business?
Amazon is a well-known global brand that attracts millions of business customers worldwide. A small business, a distributor, or a larger organization can significantly benefit from Amazon’s established brand by participating in Amazon Business.
If you wish to expand your Amazon venture and explore B2B eCommerce, Amazon Business is an ideal platform you should consider. Here are some reasons why you should consider becoming an Amazon Business Selling Partner in 2023.
Millions of Business Customers
If you plan to venture into B2B eCommerce, consider Amazon Business because of its large following. As of 2023, it is reported that there are 6 million business customers purchasing products on Amazon Business, including ninety-six Fortune 100 companies.
Some popular registered Amazon Business customers include Intel, Citi, Red River Brewing Company, Johns Hopkins University, Seattle Children’s Hospital, United Service Organizations, and various U.S. governmental entities.
Fastest-Growing Venture of Amazon
Amazon Business stands out as Amazon’s most rapidly expanding venture. Since its inception in 2015, it generated 1 billion in sales within its inaugural year.
It has a forecasted 1.2 trillion B2B eCommerce opportunity size. Moreover, a clear testament to the immense potential for Amazon Business sellers is the recent report of an annualized sales figure of $35 billion.
Innovative Technology and Solutions
Amazon Business offers business sellers advanced features to help them manage and grow their business. Some of the Amazon Business features you can use to promote your products and improve your sale includes the following:
• Profile Editor
• Profile Display Quality & Diversity Certifications Editor
• Quote Requests
• Enhanced Product Content
• Pricing Customization Tools
• Tax Exemption on Qualified Purchases (for Amazon Tax-Exemption Program participating sellers)
Besides Amazon’s proprietary software and tools, Amazon business sellers can also use third-party software to improve their business performance further. In particular, sellers can use an AI business repricer to automate business pricing and discount offers.
In addition to the AI business repricer, Amazon consistently brings improvements to their B2B platform, enhancing procurement efficiency and streamlining operations. Some of the improvements that minimize manual tasks and expenses include integrating more than 100 other payment, procurement, and enterprise resource planning (ERP) systems.
Overview of How You Can Start Selling on Amazon Business
STEP 1: Start by enrolling as a Professional Seller on Amazon.com. If you are already an existing Amazon seller, simply add the Amazon Business features via Amazon Seller Central.
It is crucial to note that the Amazon Business Seller Program is accessible only to Professional sellers who meet the eligibility criteria. Amazon Business sellers are held to higher performance standards; hence a thorough evaluation of their performance history is conducted to determine eligibility.
In cases where certain Amazon sellers are not initially deemed eligible for the program, an option exists to request a review from the Amazon Business team for the possibility of obtaining a special exception.
STEP 2: Create a comprehensive Amazon business account profile utilizing the Profile Editor once registered. The said Amazon Business feature enables you to highlight your pertinent credentials and certifications.
STEP 3: Following profile creation, you can now set up your Amazon Business products with the help of the Amazon Business Central listing tool.
STEP 4: Once you have listed your products on Amazon Business, you can now start selling your products. Promote your products and tap into a global audience of millions of Amazon business customers.
Amazon Business Fulfillment Options
Once you start selling your products on Amazon Business, you are presented with three alternatives for order fulfillment. Orders placed on the Amazon Business marketplace can be fulfilled through the following methods:
Fulfillment by Amazon (FBA): Similar to Amazon Seller Central, FBA services are also available in Amazon Business. It means that Amazon will also be the one to fulfill business customers‘ orders on your behalf. You can leverage Amazon’s advanced fulfillment centers for your convenience.
Merchant Fulfillment: As an alternative to FBA, you can fulfill orders directly from your own warehouse facility. However, you should take note of Amazon’s packaging requirements to avoid any order fulfillment issues.
Hybrid Approach: This fulfillment strategy combines the two methods mentioned above. You have the option to utilize Amazon FBA for shipping specific products while opting for the Merchant Fulfillment method for others.
What Is Business Pricing?
Amazon defines business pricing as “offers that are lower than your retail prices.” This price offer is intended to encourage buyers to purchase items in bulk. Thus, business prices cannot be set higher than the retail or consumer price.
These business prices are exclusively visible to registered Amazon Business buyers, which helps avoid confusion among retail shoppers. The listing remains accessible to retail shoppers, but they cannot view the business pricing. Ordinary Amazon shoppers will see only the consumer price you have established for the product, not the business price.
For a more streamlined and effective pricing strategy, it is highly suggested that Amazon Business sellers utilize a business repricing software.
Amazon Business Repricer vs. Traditional Repricer
Effective pricing strategies and tiered discounts are crucial for Amazon Business selling partners, as their listing prices must not exceed the consumer price. In view of such a need, Seller Snap introduces the world’s first AI Business Repricer tailored for Amazon Business sellers.
This particular Amazon Business tool is primarily developed to assist Amazon sellers targeting B2B customers on Amazon. The AI Business Repricer offers advanced algorithms to adjust prices in real-time, ensuring optimal profitability for Amazon Business sellers, differentiating it from the traditional repricing software.
To give you a better understanding of these latest Amazon e-business tools, here are some critical differences between the AI Business Repricer and traditional repricing software:
Target Users
The Amazon Business Repricer is exclusively available to sellers who are registered with the Amazon Business Seller Program. However, existing Amazon sellers with a Professional Selling Account can join the program at no extra cost, allowing sellers to access and utilize the full capabilities of the newly developed advanced Amazon e-business tool.
Technology
Seller Snap’s AI Business Repricer utilizes advanced algorithms and machine learning technology to analyze extensive data sets in real-time, providing highly accurate and targeted pricing recommendations for Amazon Business sellers. The approach of this Amazon Business tool differs from traditional repricing software, which primarily relies on static rules and manual price inputs to facilitate changes in Amazon listing prices.
Speed and Efficiency
As mentioned above, the AI Business Repricer can analyze data in real-time due to its sophisticated features. Consequently, using advanced AI technology results in significantly faster and more efficient price adjustments than traditional repricing software. The advanced algorithm used by this Amazon Business tool enables business sellers on Amazon to monitor competitor prices and identify changes in market conditions more conveniently than a traditional repricer.
Accuracy
Another key feature that sets the AI Business Repricer apart from traditional Amazon repricer is its accuracy. Since this Amazon Business tool can analyze large amounts of data in real-time and continuously adapt to market changes, it can provide more accurate pricing recommendations that help sellers avoid the adverse effects of overpricing or underpricing their listings.
Having the right tools for online Amazon business is crucial. If you want to gain a competitive edge in the market and improve your Amazon Business performance, consider using the AI Business Repricer today.
Amazon Business Seller Program Frequently Asked Questions (FAQ)
What is the Difference Between Amazon Business and Amazon Business Program?
The Amazon Business refers to the B2B marketplace serving the procurement needs of businesses, government entities, and various organizations. On the other hand, the Amazon Business Program is designed to help companies or businesses sell their products on Amazon’s B2B platform. The Amazon Business Program provides tools and benefits specific to B2B selling.
Who Manages Amazon Business Post-Purchase Customer Support?
The responsibility varies based on the type of fulfillment method you choose to fulfill orders. Amazon oversees customer service for purchases that are fulfilled and shipped using Amazon FBA. On the other hand, customer support for orders fulfilled by the merchant is the responsibility of the business seller.
What is Enhance Product Content?
Enhanced Product Content is a feature within Amazon Business that aids business sellers in accurately detailing their products. This, in turn, assists business customers in making well-informed buying decisions. Some of these enhanced contents include user guides, CAD files, safety information, spec sheets, a comparison chart, and an installation manual.
What Are Business-Only Offers?
Business-only offers refer to the option of limiting specific product offers to be exclusively visible to verified business customers in categories such as healthcare, industrial, lab equipment, and more.
What Are Quantity Discounts?
The Amazon Business platform allows sellers to establish up to five pricing levels for each product. This feature enables sellers to provide targeted price discounts for business customers based on the quantity of their orders.
Enroll in Amazon B2B Today
Amazon Business presents an excellent opportunity for sole proprietors, small enterprises, and even corporations to participate in B2B eCommerce. If you aim to expand your Amazon business while serving the needs of business customers worldwide, consider becoming a part of Amazon’s rapidly expanding B2B platform. Enroll in Amazon Business today!
