Amazon.com is a global marketplace that connects customers with the merchandise they need, but did you know there’s another side of this store that caters strictly to businesses? Packed with its own set of unique features, Amazon Business provides benefits that companies wouldn’t otherwise see while shopping on the e-commerce giant’s consumer-facing portal. If you run a company that sells goods to other organizations, you might be interested in harnessing the power of this service to reach more potential customers. Here’s a look at Amazon’s business side, and how you can start selling through this portal.
Distinctive Features of Amazon Business
One of the things consumers love about Amazon is its access to affordable prices without the membership fees you’d pay at a warehouse store. The basic level of Amazon’s business side operates in a similar fee-free manner with the option to upgrade to Prime, but that’s where the similarities end. Upon accessing this service, users get to browse millions of professional-grade products from thousands of sellers at business-friendly and bulk prices.
Businesses have a much different process for purchasing products when compared to normal consumers, and Amazon tailored this service to reflect this reality. Depending on your organization’s procurement process, you’ll be able to take advantage of several unique features:
- Multi-user accounts to give buying power to multiple people in your organization.
- Purchasing cards that can be used by any authorized member of your team.
- Payment via purchase order through an Amazon corporate credit account.
- Approval workflows that let managers authorize or decline purchases made by employees.
- Seller credentials that list considerations such as small business or minority and female ownership for companies that place a priority on these types of sellers.
- Tax-exempt purchasing for businesses eligible for this benefit.
- Analytics and reporting so you can monitor your spending habits and make changes when needed.
A business using this service also has the ability to arrange consolidated deliveries on qualifying purchases. These orders are palletized and dropped directly at your company’s front door or loading dock by an authorized Amazon carrier.
Prime for Business
Much like the consumer-facing version of Amazon Prime, the business side of this service offers its own tier of benefits. For eligible purchases, your organization can enjoy free same-day, next-day or two-day shipping, but that’s just the beginning. Business Prime customers can also pay by invoice, designate preferred suppliers, take advantage of advanced spending analytics and even apply for a fee-free credit card.
How To Sell on Amazon Business
Now you know how Amazon Business works, your next step is to make your products available to this massive community of corporate customers. If you’re already selling items to consumers, you’re halfway there by virtue of having a seller’s account. Using Amazon’s Seller Central portal, you can easily add business features to your store. For an Amazon business account, you’ll also need to set up a company profile that spells out your story and lists the diversity credentials and quality certifications that make your company an attractive supplier. Once you’re finished configuring your profile, you’re ready to list items and start selling.
Advantages and Disadvantages of Selling Through Amazon Business
Becoming an Amazon Business seller is easy enough, but is it the right choice for your company? Before you start selling your products to corporate customers, it can help to conduct a frank analysis of how your organization could benefit from this service.
One of the biggest advantages of selling through Amazon Business is the power that comes with this e-commerce powerhouse’s name. Amazon.com has become a household name for anyone who regularly makes online purchases, and that familiarity extends to Amazon business customers. With so much recognition, it’s no wonder why Amazon’s business side boasts a customer list of more than 400,000 users. The sheer number of patrons means your products are available to more potential buyers than any other online marketplace.
Beyond volume, there are a few other advantages of being an Amazon Business seller. With Amazon’s massive budget, the company has a lot of money to invest in research and analytics, which means it can provide the B2B features its customers actually need. You’ll also be able to take advantage of the Amazon fulfillment process by shipping your goods to a warehouse for shipping. Businesses owned by minorities, women or veterans also get to list these credentials on the site, which makes them show up in searches by buyers interested in purchasing from diverse organizations.
While you could see increased volume by selling through Amazon Business, there are some drawbacks you should consider. Amazon’s cut of each sale can range from 6% to 15% before the addition of fees for fulfillment. You’ll also have limited ways to communicate with your customers, who will often move on to lower-priced merchants because you can’t easily differentiate yourself from another seller. There’s also a learning curve for listing items because of different rules for each product category. If you don’t adhere to an item’s restrictions, you could find yourself penalized in search results.
Become a Business Seller Today
If the benefits of selling on Amazon Business make sense for your organization, all you have to do is set up your profile and start selling. While this portal allows enhanced exposure for your brand, managing a web store might not be your company’s priority, which is why you need help from an experienced e-commerce marketing partner. At OperationROI, we’ve worked with businesses since the early days of online shopping, and we’re ready to help you succeed in the B2B or consumer-facing market. To learn about our service offerings, give us a call at 1-888-277-5429 or contact us online today.
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