This article describes the opportunity of Amazon Business for vendors to sell B2B. As we all know, Amazon is a great place for Vendors to reach end customers. While building this business to consumer marketplace Amazon developed relationships with many different vendors. Well, just like end consumers, businesses need to buy things to keep their operations running. This is where Amazon Business comes in.
What is Amazon Business
Amazon business is an Amazon account designation that allows users to buy products from Amazon with additional benefits suited for the workplace. You can order almost anything with the peace of mind that is inherent with Amazon's quick and reliable shipping. In this article we will look at how Amazon business is beneficial to the customer as well as how a seller can take advantage of this opportunity.
Key Benefits to an Amazon Business Account as a Shopper
As an employee of a company, there are many benefits that come with signing up for an Amazon Business account.
Familiar Amazon Benefits
Employees are used to the workflow and how to easy and conveniently make purchases on Amazon through their home personal accounts. Now they are able to enjoy those same familiar processes at work. Enjoy free 2-day shipping on orders $49.99 and up
Sellers have the ability to set special pricing for those who have an Amazon business account. When you are shopping you will be able to see the specific dollar savings on your purchases. This can be for specific items or bulk discounting pricing if you are purchasing more.
Manage one Supplier
With Amazon Business, you no longer have to track multiple different suppliers for business purchases. Amazon has the world's largest selection of products under one roof. So, whether you are buying paper, pens, office supplies, desks, computers, or anything to keep your business running; everything is managed through the one supplier of Amazon's system with one easy to use order tracking systems. With the ability to assign PO numbers to purchases, it is easy to see where orders are and for the accounting department to audit spending.
Assign Roles and Approvals
Amazon Business allows customers to assign roles and permissions. The office admin is able to buy pens and paper for the office as easily as the Chief Operating Officer is able to buy new desks and laptops for the whole office. With groups and roles, anyone can make requests that can then be pushed to the administrator to approve or deny these purchase orders.
Amazon Sellers Should Take Advantage of Amazon Buisness
There is a huge opportunity for Amazon sellers to take advantage of by taking their existing selling of business to consumer and applying it to business to business selling. Here are some reasons why Amazon seller should take advantage of the Amazon Business Program.
The market for business to consumer sellers is very fragmented. Currently, sellers may purchase their computer directly from Apple or Microsoft and their office supplies from another vendor. Now, Amazon, the everything store, has all of these products under one roof which as we mentioned above is valuable component for company purchasers to utilize one familiar platform
The size of the business to business market is staggering. It is estimated that by 2020 the market for business to business purchasing can reach the trillions. This is more than two times the size of the business to consumer market. With Amazon's ability to market and attract customers, this means that more business purchasers will be transitioning to the Amazon Business purchasing model and increasing the customer base you can potentially reach.
Increased Sales on Amazon as a Whole
Offering your products on Amazon Business will get you immediate access to the current businesses enrolled in the Amazon Business program. With more impressions, there will be more sales and reviews. With more sales and reviews comes an increased organic rank on Amazon. By enrolling as an early adopter in the program you have the ability to take advantage of this process at an early stage.
Selling on Amazon Business in Practice
Now that we have reviewed the benefits of Amazon Business from the business buyer side, as well as the market opportunity from the seller side; let's look at how to sell on Amazon Business in practice and the opportunities that are available for a seller on seller central or a vendor through vendor central.
Seller Central Amazon Business
On your Seller Central Account navigate on the top bar to Pricing and then to the Manage Pricing drop down.
From there you are presented with a list of ASINs. On this screen you are able to change change your individual product purchase discounts.
If you want to offer a quantity discount the first thing you need to decide is whether you want to offer a fixed or a percentage discount on quantity orders. Click quantity discounts below the discount price and indicate the order quantity in which you want the discounts to kick in. You are able to add up to 5 price breaks based on minimum order quantities you set.
Remember to hit set prices to save your progress.
Vendor Central Amazon Business
For vendors selling through Vendor Central, the Amazon Business process requires you to download an excel sheet to be re-uploaded.
By navigating from Vendor Central home page to Merchandising > Business Pricing Discounts. You are able to download the form to input your cost functions.
Similar to seller central, you are able to discount your products based on a fixed or percentage discount with associated amount discounts.
Input the ASINs you want to offer and the discount you want to offer. Once you are done, save and re-upload the file to Amazon.
How to Succeed Selling on Amazon Business
Here are three ways in which you can improve your chances of being successful by selling on Amazon Business. These strategies also apply to selling directly to consumer but it should be worth thinking in terms of a business buyers profile.
Offer products on Amazon that fit within the profile of a business buyer. This may mean offering different products not currently in your catalog. Take a look at your current business and put yourself in the shoes of another business that may want to buy something in your catalog and offer it on Amazon at a discounted price.
Amazon Marketing Services
Just offering your product isn't always enough. If your product does not rank on the first page for the desired keyword, it may be worthwhile running Amazon Marketing Services to pay to get your products in front of potential customers. If your discount is strong enough, the campaign could have a low ACoS due to the quantity in which they are purchasing the product.
Product Detail Pages
Be sure to include images that clearly show what the business buyer is receiving. Have well written marketing copy that not only describes in detail what the product is but is also persuasive in making decision to make a purchase. Utilize A+ or enhanced brand content to share your company's message and story and other lifestyle shots. Think of how you can merchandise your product in terms of a business buyer.
Contact Us For Help
We at Goat Consulting can help you get your products offered on Amazon Business. If you need help deciding discount pricing, writing detailed product listing pages, getting your products seen on search result pages or managing Amazon Marketing Services; please reach out.