Expanding beyond B2C, Amazon Business offers a robust platform for B2B entities to sell their products online, streamlining bulk purchasing for clients while enhancing business profitability.Is Amazon Business a viable long-term strategy? Explore insights on this and other key questions, including:
Is Amazon Business a viable option?
What is Amazon Business (B2B)?
What does the Amazon Business Sellers Program entail?
Which companies can participate in the Amazon Business Sellers Program?
What are the costs associated with Amazon B2B?
What are the features of the Amazon Business (B2B) marketplace?
How do I enroll in Amazon Business for B2Bs?
Continue reading to determine if Amazon Business is a worthwhile investment for your organization.Whether Amazon Business is a worthwhile investment hinges on your product offerings, pricing strategy, and target market. Generally, businesses excelling on Amazon Business sell products that customers purchase in bulk on a regular, not one-time, basis.Does this align with your organization’s model? Read on to delve into Amazon Business!
Amazon Business represents the B2B iteration of Amazon.com, ensuring supply chain continuity with streamlined purchase requests and bulk buying from vetted sellers.
The Amazon Business Sellers Program, also known as Amazon Business (B2B) or Amazon B2B, is a service for companies to sell on Amazon Business, mirroring the Amazon Professional Seller program in functionality.As bulk sellers typically see the most value and ROI from Amazon Business, Amazon encourages manufacturers and distributors to join the Amazon Business Sellers Program. Industries such as agriculture, automotive, business products and services, construction, energy, financial services, healthcare, industrial, information technology, and transportation and logistics tend to flourish on Amazon Business.Upon joining the Amazon Business Sellers Program, however, Amazon mandates maintaining certain performance metrics:
Order Defect Rate (ODR) of 0.5% or less
Pre-shipment Cancellation Rate of less than 1%
Late Shipment Rate of less than 2%
For order fulfillment, you must provide:
Tracking numbers
Packing slip
Purchase order number
Amazon monitors your chargebacks, negative reviews, and A-Z Guarantee Claims. Fulfillment by Amazon (FBA) can help mitigate certain metrics, such as late shipment rate and order defect rate, at a cost.Keep in mind that Amazon FBA is not free.Joining the Amazon B2B program incurs two fees:
Amazon B2B subscription: The Amazon Business Sellers Program includes a monthly subscription fee of $39.99. Initially, Amazon waived this fee upon launching Amazon Business.
Referral fees: Your business’s referral fee depends on the products and the number of product sales. For the latest rates, refer to Amazon’s fee structure.
Before enrolling, review the referral fees and estimate your monthly costs to set realistic revenue goals.In addition to accessing a B2B marketplace, Amazon Business provides tools for managing products, measuring performance, and boosting sales. Notable features include:1. Business PricingAmazon and Amazon Business sellers benefit from business pricing, which allows displaying two prices based on the user.Your consumer price cannot exceed your business price.2. Quantity DiscountsQuantity discounts enable setting up to five discount tiers for bulk purchases, simplifying the process for customers.3. Reporting DashboardsAccess B2B Central through the Amazon Business Sellers Program for reports such as Sales Snapshot, B2B Performance by Industry, Top Products, and Business Action Center.4. Business ProfileUtilize the business profile feature to create trust with B2B buyers by sharing information like year established, business type, and logo.5. Enhanced Product ContentEnhanced product content simplifies shopping for B2B buyers by providing CAD files, user guides, safety information, installation manuals, spec sheets, comparison charts, and more.6. Quote RequestsReview and respond to custom quote requests through your B2B Central dashboard, offering potential customers bulk discounts.7. CertificationsInclude quality and diversity certifications in your profile to meet buyer expectations, as they can filter sellers by credentials.Ready to join Amazon Business? Follow these steps:Register your company to sell on AmazonCreate a Professional Seller account on Amazon, which includes a $39.99 monthly fee. Then, search for “Amazon Business” and select the first result labeled “Amazon Business Seller Program.” Depending on your selling history, you may be prompted to check your eligibility or click to join immediately.Create your Amazon Business profileOnce access is granted, create your business profile, add certifications, and upload your logo.Upload your product catalogUpload your product catalog using Amazon’s listing tools, and take advantage of enhanced product content to provide additional information for business buyers.Bonus video: How to drive revenue with B2B ecommerceWhile Amazon B2B may not be suitable for all businesses, it’s a prime marketplace for many, from office supply distributors to lighting manufacturers. With Amazon Business, you can expand your reach and boost brand revenue. Need guidance to get started with Amazon Business? WebFX, with a team of over 500 professionals, offers B2B marketing services to help maximize your ROI. Contact us online or call 888-601-5359 today for more information!
