Running a B2B e-commerce channel is complex. There’s a lot of things you need to consider including your payment method, catalogs, commission, etc. However, these complexities have been solved by modern e-commerce platforms like Amazon.
When talking about e-commerce, you can’t miss the biggest online shop, Amazon. However, Amazon didn’t start as a tech giant. Its success started in 2015 when it introduced a new business marketplace, Amazon Business.
Amazon Business uses a new criterion which incorporates new features with unique benefits that are specially tailored to benefit customers. This method provided easier access to millions of products, ranging from education and IT to beauty products and lab equipment. What’s more, customers can enjoy a free two-day shipping on any eligible item on the platform.
Although it might seem like a simple selecting-and-pricing platform, Amazon Business has more to offer. Some of its exceptional features include the multi-user business account option, tax exemption, approval workflow, dedicated customer care support, and many more. The Amazon Business Seller program also has a huge impact on small and mid-level distributors.
In this article, let’s explore everything you need to know about Amazon Business. Hopefully, this will encourage to join the hundreds of business sellers on Amazon, build your catalog, and increase your sales.
What is Amazon Business
Amazon has not only changed how consumers shop online but have also completely transformed the whole online shopping experience. With Amazon, products are easy to find. What’s more, they are cheap and quickly delivered. Amazon has taken this same level of experience and applied it to the B2B scene and has created Amazon Business.
Amazon Business is an online user purchase solution that provides a marketplace to any registered business- whether big or small. Typically, Amazon Business allows businesses to assign users and give them access to supplies, which they can purchase on behalf of their employers. The administrator of the business reserves rights to add or remove users. He can also add or remove payment options and approve workflows, depending on what the business needs.
In the simplest words, Amazon Business allows you to connect with other businesses so that you can find the right suppliers to help you grow your own business. Here, you can have access to hundreds of millions of products and businesses from many industries and of different sizes. With all the features specifically made to make easy B2B transactions, you can conduct your activities with little to no problem.
How Amazon Business Works for Sellers
Separate from the standard customer marketplace, Amazon business does not incur additional charges or fees. There are several features to this platform. These include the following:
- Free shipping- Orders under fulfillment by Amazon or above $49 are offered free shipping services.
- Product browsing and a customized search option- This option is specifically tailored to your business type.
- Multi-user support and order approval workflows
- Business Pricing- This option is the key to ensuring you don’t have to buy as a business at the given consumer points.
- Purchase order number association- This is necessary for the provision of uniformity of Amazon Business orders.
- Business selection assistance
Before you upgrade to Amazon business, however, you must first show a good seller history. Once you have your own business seller account, customers can scroll through your page and see your Business seller credential. With this credential, you can encourage more customer loyalty. Your business-only prices can only be seen by other verified business buyers.
Business customers can also add logos, banners, and more details to profile. This feature is not available on the seller central. If you want to meet delivery requirements, you are also allowed to avail fulfillment by Amazon. Orders can be directly shipped from the warehouse to customers. You can sell by units, cases, or pallets.
Amazon Business for Small Businesses
One of the best things about Amazon Business is its ATEP or Amazon Tax Exemption Program. The program allows you to apply for tax-exemption, which you can then use to make purchases from Amazon. The main reason this program is so popular is that it allows you to take full advantage of its benefits without creating an Amazon company profile. To make it better, you take full advantage of its analytic dashboard monitoring-- all the international and Amazon web - to help you control and regulate your supply and purchase chain.
Amazon Business also offers a necessary tool to help you determine the whether you qualify for the seller program. Apart from that, you can use the tool to make inquiries about your state’s tax-exemption rules and determine which type of exemption suits you best. To access this option, one is required to setup Amazon Business account.
Pros and Cons of Amazon Business
Like starting any kind of business, you need to know whether or not the platform fits your business. This said we’ll list all the pros and cons of Amazon Business.
Buying from Amazon Business
Although buying materials and supplies to operate your business might sometimes not come as a priority, it is a fundamental part of the operation. If you are a big business, you might have someone do it for you. On the other hand, if you are running a smaller business, you might do it yourself. In either case, business buyers incorporating the services of Amazon Business will work more efficiently and can your business’ stock.
Below are the advantages of buying from amazonbusiness.com:
- It allows you to save on shipping fees.
- If you properly establish your Amazon Business account, you can use it to perform advanced tasks such as managing your approval workflows.
- You can comfortably use Amazon Business to vet out suppliers.
- You will all your desired products in the Amazon Business marketplace.
You might also want to know its disadvantages:
- It might not always have everything for a business model you need.
- It might not offer the best prices.
- Approval workflow processes, as well as order tracking, are separated from other operations.
Selling on Amazon Business
Typically, by being an Amazon Business seller, you open up a marketplace to third-party sellers. This means that you can sell through the Amazon B2B program. However, much of what you can do on the B2B program is similar to that of a normal Amazon Business program.
Below are some of the advantages of selling on Amazon Business:
- You can easily get more buyers by advertising your credentials through the business seller program.
- You can take advantage of the Amazon Business credit options and infrastructures.
- It is quite easy to switch and integrate with your seller profile as well as seller central.
On the other hand, its disadvantages include:
- Your ability to build a brand in this platform is limited.
- Selling on Amazon Marketplace can be quite cumbersome and hard to manage if proper integration is not kept.
- Although it might change with time, the cost of selling on Amazon Marketplace is similar to a normal seller account.
Price Saving and Shipping Options
The minute you are on Amazon’s homepage, you know you are in for a treat. The same can be said about Amazon Business. There are plenty of discounts, referral fees, price saving options, as well as reduced shipping costs.
Typically, those with business-user accounts can make a purchase at Amazon.com. And Amazon Business ensures it rewards its customers by providing price breaks on multiple unit transactions.
These price cuts apply to millions of business products and provide users with an opportunity to make price comparisons from different sellers before making a purchase. What’s more, buying larger quantities of products from Amazon Business will allow you quantity discounts of up to 10%. Although you might think that this option is specially set to benefit Amazon business customers making big purchases, it is actually very helpful to small businesses using a redeemable Amazon point balance option. This also means that as long as you are an Amazon Business customer, you will always enjoy amazing goodies regardless of your level of shopping.
On the hand, when it comes to shipping on the Amazon Business, you are required to add a prime shipping account to your business account and apply at an additional fee – usually, not more than $49. Additionally, for a single-user business account, you get to enjoy a free two-day shipping and private labeling on any eligible product. Further, you can add multiple prime accounts to your business account for a maximum of 10 users, depending on the number of employees you have.
Amazon Business Payment Options
With Amazon Business, customers have to enhance their payment relationship with the platform before they can start to get standardized invoices. Also, administrators hold rights to either add or remove payment options. Among these options include debit cards, credit cards, or corporate credit line from Amazon. Note that anyone using your business account can access your Amazon Business can make purchases on your behalf using the payment option of your choice. For these reasons, always ensure you keep your credentials safe at all times.
Amazon Corporate Credit Line offers an expanded user and management option for the Amazon Business account fees. It allows you to authorize multiple buyers to use a single account. Also, the sophisticated line can easily let you pay by purchase order and download order history reports.
A Review of Amazon Business
Unless you are new to online shopping, you have probably heard or even shopped at Amazon. Maybe you liked the experience and even commented on the Amazon business account review or it simply didn’t interest you. After all, everyone is entitled to his or her own opinion. One thing certain is that the company has registered the highest number of customers over the last two years.
Given its reputation, wouldn’t it be easier for you to grow your business if you are an affiliate of such a big organization? To make it even better, joining Amazon Business allows you to enjoy the Amazon Tax Exemption Program. So, on top of enjoying the platform’s great user experience and on-point customer service, you also get to take the advantage of tax-free purchases.
In as much as Amazon Business is considered exceptional, business experts believe that it works best on some companies compared to others. You might want to evaluate how your business works before you sign up for Amazon Business. The program can be of great use if you are operating on a business that caters to bulk product orders. Top Amazon sellers expressed their opinion regarding the issue, saying that the program has been quite helpful mainly due to its ability to incorporate bulk Amazon business pricing as well as discount provisions to companies that deliver larger quantities.
There is no doubt that Amazon online business has taken the online shopping experience to the next level. Utilizing the new phase of eCommerce innovation, Amazon has gained a reputation as one of the best B2B marketplaces in the world. Whether you try it or not depends on the type of business you’re running. It’s best that you carefully understand the function of Amazon Business before you register and join.