Sell B2B on Amazon with Amazon Business as a brand or manufacturer to reach a huge market of buyers. Amazon Business is the B2B marketplace on Amazon, which provides business customers with specific pricing, unique product selection, and the convenience of Amazon. For Amazon Sellers, this creates an amazing merchandising opportunity to increase sales and reach a different type of Amazon customer. If sellers fail to offer B2B pricing, they may lose out on this unique market share. Amazon states that there are millions of sales opportunities selling B2B on Amazon including “+50% of the $10 billion annualized global sales are made by third-party sellers with 1 million business buyers worldwide”. This post will explore the Amazon Customers on Amazon Business, the benefits of the Amazon Business Program, and how to set up Amazon Business in Seller Central.
Amazon Customers on Amazon Business
This section will cover the Amazon Business customer profile, products offered to Amazon Business customers, and why Amazon Business customers choose Amazon Business to procure business needs.
Amazon Business Customers
Amazon Business boasts a huge customer base for B2B sales. The customer profile on Amazon Business is different from traditional B2C or individual customers on Amazon. Amazon Business customers have profiles set up for their organizations or entities that allow them to procure products needed for their business. There are more than 5 million Amazon Business customers including 96 customers on the Fortune 100 list, 92 of the 100 largest hospital systems, and 90 of the 100 most populous local governments. With such a wide variety of companies and the scale of their purchasing power, it can be a huge opportunity to sell your products to these businesses directly through Amazon.
Amazon Business Products
Think of all the stuff that is needed to run a business including office supplies, IT products, janitorial supplies, restroom supplies, breakroom supplies, etc. With such a wide variety of types of businesses, the list of products can grow almost endlessly. For example, you may not think that a bag of chips wouldn’t fit a business-to-business sales model, but maybe a company wants to stock the breakroom with the bag of chips you sell. You may be selling a product that is perfect for B2B without even realizing it. This can be a great sales opportunity if you offer a product that can be used by other businesses. At Goat Consulting, we argue that all products you sell should be offered through Amazon Business because you never know if a business wants to procure your product.
Why Amazon Business Customers Use Amazon Business
There are many reasons why Amazon Business Customers choose the Amazon Business platform over other procurement or supply purchasing programs. Here are some of those reasons:
Simplify Purchasing - Most employees are familiar with buying on Amazon for household uses. By using the Amazon Business platform, employees know how to search, add to cart, and buy products with a platform they recognize and trust.
Find the Right Supplier - Amazon Business has a selling partner certification plan that allows third-party selling partners to feature and display one or more of 18 nationally recognized diversity, ownership, and quality certifications. This includes certifications such as ISO: 9001 certified, small business, women-, minority-, and veteran-owned businesses to their seller profiles, which will be displayed to business customers.
Understand Business Spend - Amazon Business offers reports on purchase history and provides opportunities to make better decisions on business purchases.
Save Money - Amazon Business offers can be lower prices than other marketplaces due to the scale and number of sellers competing on the platform.
Wider Variety - Amazon aims to be the world’s largest marketplace, which creates the widest selection of products to purchase from.
Amazon Business Prime - With Amazon Business Prime, you can receive fast and free up to same-day delivery on eligible orders and other Prime benefits.
Benefits of the Amazon Business Program for Sellers
Now that we have learned about the customers on Amazon Business, let’s look at the benefits for Sellers on the program. Amazon Business can be used in tandem with other discount and merchandising tools on Seller Central such as coupons, Amazon Advertising, and Amazon Posts.
Business Pricing
Amazon Business offers sellers the ability to offer specific prices available only to Amazon Business customers. This price will display only for accounts that have created an Amazon Business account. This lets you segment your offer to a business type of customer. Note that you cannot offer a higher price than you offer for a traditional consumer price. Business pricing must be equal to or less than traditional pricing.
Quantity Discounts
Amazon sellers can add tiers of quantity discounts. This is a great incentive to increase the basket size of each purchase. For example, a seller could offer a 10% discount if a buyer purchases 10 units, a 15% discount if the buyer purchases 20 units, etc. This quantity discount is at the sole discretion of the Amazon seller, which allows you to make an offer that fits your pricing model.
Category Restricted Offers
Sellers have the ability to restrict the specific product categories, so offers only display to businesses that are verified within that specific category. For example, if you want to restrict your offer to a category like healthcare, you can do so.
Tax Exemption Automation
Enrolling products into the Amazon Business program enables automated tax exemption on qualified purchases from sellers participating in the Amazon Tax-Exemption Program. This can allow your offer to stand out against your competitors by offering cost savings for the buyer.
Business Profile and Certifications
Once you have signed up for the Amazon Business program, you can fill out a Business profile that allows customers to know more about your company than just the price of products. Sellers can add to your company’s story, as well as display Seller Certifications.
How to Set Up Amazon Business in Seller Central
Now that we have reviewed the opportunity for selling to Amazon business customers and the features available to Amazon Business sellers, let’s go through how to set up Amazon Business in Seller Central.
How to Start Selling B2B on Amazon Business
In order to sell on Amazon Business, you will need a Seller Central Account with a Professional membership. Once your membership is set up, you will first need to add your catalog to the Amazon platform. There are some requirements to sell on Amazon. Once your catalog is listed, navigate to the B2B section of Seller Central to start making B2B offers.
How to Offer Business Price and Tier Quantity Discounts
Under your Manage Inventory section, you can show the hidden preferences to display the Business Price + Shipping view. If you add a price to the Business Price field, this is the price that will be displayed to Amazon Business customers. Clicking the Add Quantity Discounts text, pops open the quantity discount form. You have the option to select either percent off the business price or fixed prices. Clicking the “Add more thresholds” button, lets you create the tiered quantity discounts. Once you have entered the discounts and minimum quantity, hit set prices to update the Amazon Business tiered offer.
FAQ - Frequently Asked Questions with Sell B2B on Amazon with Amazon Business
What is Amazon Business?
Amazon business is the B2B marketplace on Amazon, which provides business customers with pricing, selection, and convenience of Amazon.
What type of Customers are Buying on Amazon Business?
Amazon Business customers include more than 5 million businesses, 96 customers on the Fortune 100 list, 92 of the 100 largest hospital systems, and 90 of the 100 most populous local governments. Any business or organization that has signed up for an Amazon Business account.
What Products are offered on Amazon Business?
Amazon Business offers any product on the Amazon store that can be used for running a business including office supplies, IT products, janitorial supplies, restroom supplies, breakroom supplies, etc.
Why Should Amazon Sellers offer Amazon Business discounts?
Amazon Sellers should offer Amazon Business discounts because it incentivizes business buyers to use your products as a supplier for running their business.
How do I Offer Bulk Discounts selling on Amazon?
Sellers can offer bulk discounts to Amazon Business customers by setting up discount quantity tiers. This quantity discount is at the sole discretion of the Amazon seller, which allows you to make an offer that fits your pricing model.
What are the pricing discount tiers for bulk discounts Amazon sellers can offer?
Amazon sellers can choose between % off discount tiers or fixed price discounts when setting up discount offers on Amazon Business.
What are the features or benefits that Amazon Business offers for Amazon sellers?
Sellers using the Amazon Business program can offer price discounts to Amazon Business customers, quantity discounts, category restrictions, tax exemption automation, and business profile and certification merchandising.
How big of an opportunity is the B2B market for Amazon sellers?
Amazon states there are over $10 billion in annualized sales from more than 5 million Amazon Business customers including 96 customers on the Fortune 100 list, and 92 of the 100 largest hospital systems, 90 of the 100 most populous local governments.
How do I start selling on Amazon Business?
In order to sell on Amazon Business, you will need a Seller Central Account with a Professional membership and your catalog listed. Then navigate to the B2B section of Seller Central to start making B2B offers.
Conclusion
We feel strongly that every brand and manufacturer should sell B2B on Amazon with Amazon Business offering a price and quantity discount. Given the number of Amazon Businesses buying on Amazon with the purchasing power of each buyer, becoming the go-to supplier to a major business could be a game changer for increasing sales for your business. We hope that you learned more about the Amazon Business procurement side and how you can sell B2B on Seller Central. If you have any questions about Amazon Business or want Goat Consulting to get Amazon Business offers set up for your company, please reach out through our Contact Us button.
About the Author - Matt McGinty
This post was written by Matt McGinty, an Account Manager at Goat Consulting. Matt helps his clients sell on Amazon by increasing sales, mitigating risk, reducing costs, solving problems, and sharing best practices around merchandising and B2B selling on Amazon. He has developed experience and expertise in guiding clients in merchandising best practices by servicing a wide variety of Goat Consulting clients. If you want to help set up your Amazon Business B2B offers or assistance with other aspects of selling on Amazon, Matt is happy to lead your account.