Amazon Business is becoming more popular among buyers and sellers alike. Discover how to expand your ecommerce business to the profitable B2B market today!
Amazon Business may be the perfect platform for you if you're a B2B seller looking to expand your reach and profits. Set to top $31 billion in profits and $52 billion in total merchandise sales by 2023, the Amazon business-to-business marketplace is growing rapidly in popularity. Gross sales for B2B grew 2.9 times faster than other segments as the company funneled energy and resources into this department. You, too, can take advantage of this platform to reach millions of new customers.
In this article, we’ll discuss features, benefits, and product opportunities for B2B. We’ll also go into some costing and account setup details.
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What is Amazon B2B?
Amazon Business is a marketplace that helps facilitate business-to-business (B2B) sales on Amazon. The platform allows businesses to search for products and services, compare prices from different sellers, and read reviews from other business customers. Anything from office supplies and janitorial products to electronics, software, and beyond can be found and purchased on Amazon Business. The site also offers business-specific features such as business pricing, quantity discounts, and purchase orders. It is currently available only in a few select countries, namely the US, Canada, the UK, Germany, France, Spain, Italy, India, and Japan.
Amazon Business to Business Features
In general, the Amazon B2B marketplace has a few key features that make it ideal for sellers:
- The ability to create custom pricing for different business customers
- The option to set up recurring orders for commonly purchased items
- A larger pool of potential customers
- Amazon world-class fulfillment
- Data-driven insights to help you improve your business
These features make the Amazon B2B marketplace a great option for B2B sellers who are looking to save time and money on shipping, as well as for those who want to get their products and services to a more qualiﬁed group of buyers.
Amazon Acronyms & Abbreviations for B2B
If you're new to the Amazon B2B world, you might come across some acronyms and abbreviations that you're not familiar with. Here are some of the most common ones:
FBA - Fulfillment by Amazon.
FBM - Fulfilled by Merchant.
PPC - Pay-per-click advertising.
B2B - Business-to-business.
B2C - Business-to-consumer.
SEO - Search engine optimization.
ROI - Return on investment.
EIN - Employer Identification Number.
Is the Amazon B2B Marketplace Worth It for Buyers/Sellers?
Amazon Business has two programs available. One for sellers and one for buyers. Each program has a different set of advantages. However, in most cases, Amazon Business will be worth it for both parties, whether they're looking to save time or money or just have a better overall experience.
As a buyer, signing up for the Amazon Business Purchasing program can give you access to a number of features that make buying easier and more efficient, such as the ability to create purchasing lists, request quotes from sellers (RFQ), and most importantly - get volume discounts on products.
As a seller, signing up for the Amazon Business Seller Program will give you access to a larger pool of potential customers. You can create custom pricing for different business customers and set up recurring orders for commonly purchased items. You’ll also be able to take advantage of Amazon’s world-class fulfillment network, which can help you save time and money on shipping.
Benefits of selling through Amazon Business include:
Ease of Use
Amazon Business is designed with businesses in mind. The process of listing and selling products is streamlined and easy to use. The platform works similarly to how individual customers shop on Amazon.com, but with extra features. For instance, buyers can search for products using business-specific criteria such as quantity discounts and wholesale pricing.
You can even start selling on Amazon with little to no previous experience!
Wider Customer Reach
The Amazon B2B marketplace allows you to reach new customers who may be looking for the products and services that you offer. Customers such as government agencies, educational institutions, and large businesses are all on the platform. You also get opportunities to participate in exclusive sales and promote your products to large brands!
Selling on Amazon Business comes with a few added perks, such as access to business-only features and customer support. Every seller has customizable dashboards that offer central store management and proactive insights to optimize your selling strategy. You also get early access to new Amazon products and services.
How Does Amazon Business to Business Work?
So, we've already established that Amazon Business is a marketplace designed to facilitate B2B sales. But how does it work? And what makes it different from the regular Amazon marketplace?
Amazon Business Transaction Process
The process of transaction in Amazon Business between a business buyer and a business seller is different from a typical Amazon transaction between an individual buyer and seller.
First, both B2B buyers and B2B sellers need to set up an Amazon Business account. This is separate from a personal Amazon account, and it requires some additional information such as a business name, address, and tax ID number. Once a business buyer has an Amazon Business account, they can search for products. When they find a product that they're interested in, they contact the seller directly to inquire about pricing, minimum order quantity, and other important details. After both parties agree on terms, the buyer purchases the products through their Amazon Business account.
The key difference here is that businesses are buying products from other businesses rather than from individuals. This can make it a more complicated process, but it also opens up new opportunities for sellers.
Requirements for B2B Sellers on Amazon
To begin selling products on Amazon Business, you first need to be registered as a business seller on Amazon. The steps are as follows.
1. Register as An Amazon Seller
You need to sign up for a professional plan seller account. It costs $39.99/month for US sellers. If you are an existing seller, you can integrate Business features directly from Seller Central.
2. Set up Your Business Profile
Once you have a B2B seller account, you'll need to set up your business profile and complete some additional information, such as your business name, address, and phone number. You can add diversity credentials and quality certifications to tell your brand story. You'll also need to provide a credit card so that Amazon can charge you for selling-related fees.
3. Set up Your Product Listings
After your business seller account is set up, you can start listing products for sale. When listing products, be sure to include information such as pricing, minimum order quantity, and delivery time. This will give business buyers the information they need to decide if they're interested in purchasing your products. You can use a Listing Quality Check tool to automatically check for listing improvement suggestions.
What does Amazon Business Cost?
In addition to Amazon's monthly fee for sellers, there are additional fees that Amazon Business sellers need to be aware of. For instance, referral fees are charged by Amazon for every product that is sold through the platform. The amount of the referral fee varies by product category, but it is typically between 8% and 15% of the sale price. Fulfillment fees are charged by Amazon when a product is sold and needs to be shipped to the customer. The amount of fulfillment fee varies by product size and weight. You may also need to pay other fees for inventory management and processing returns.
What Products Can You Sell on Amazon B2B?
If there is a demand for your products from businesses, then you can absolutely list and sell them on Amazon Business. Buyers on Amazon Business are always looking for products that can help them run their businesses more efficiently, and your products may be just what they're looking for. You can sell products that could be used by other businesses - such as office supplies, janitorial supplies, or industrial equipment. You can also sell services on Amazon Business, such as consulting, design, or repairs.
Top Categories on Amazon B2B Marketplace
Some opportunities on Amazon Business are more lucrative than others, especially when it comes to product categories. Particularly, there are some categories of products that businesses tend to buy in large quantities, making them more profitable for B2B sellers.
Here are some of the top categories for B2B product sales on Amazon Business (via Statista):
Maintenance, Repair, and Operations
As businesses strive to cut costs and improve efficiency, they often turn to Maintenance, Repair, and Operations (MRO) products to help them achieve these goals. MRO products are used in various industries and can include items such as:
- Supplies for production machinery like valves, motors, gears, bearings, electronic components, machine oil, and other lubricants.
- Safety equipment like hard hats, masks, respirators, ear plugs, vests, boots, and headlamps.
- Cleaning supplies like disposable gloves, liquids and powders, disinfecting sprays, buckets, mops, brooms, rags, and dust cloths.
- Laboratory supplies like beakers, test tubes, syringes, and scales.
Whatever you find in large quantities in an office, there's a good chance you can sell it on Amazon Business to a business customer. Examples include:
- Office furniture like desks, chairs, whiteboards, art and decor
- Office technology like networking devices, printers, projects, laptops
- Stationary like markers, papers, pens, business cards, and printer ink
- Breakroom items like coffee, tea, snacks, beverages, and first aid
Businesses in the automotive industry - from dealerships to repair shops - often need to purchase large quantities of automotive parts and supplies. If you sell these types of products and didn't realize Amazon B2B was an option, now's the time to list your products! For example:
- Automotive tools like wrenches, spanners, trolley jacks, and multimeters
- Car electronics like adapters, windshield mounts, tire inflator and head rest mounts
- Car maintenance like wiper blades, engine oil, cleaning sprays, and gas cans
- Car accessories like windshield covers, wheels, cords, floor mats, and seat cushions
Food Service Items
The restaurant industry is a major customer of food service products. Most offices also have kitchens they need to stock. Ideas in this category include:
- Food storage items like jars, cutlery trays, drawer organizers, knife holders and racks
- Food preparation items like blenders, graters, knives, colanders, mixers, and cutting boards.
- Cooking items like toasters, kettles, microwaves, grills, ovens, stovetops
These are just a few of the many product categories that are popular with business buyers on Amazon. If you sell any type of product that businesses might need, then there's a good chance you can get your products in front of buyers on Amazon Business. You can also search for profitable product ideas using a tool like Product Research for Amazon.
Becoming a B2B seller on Amazon can be a great way to get your products in front of business buyers. It allows you to reach a new business-to-business customer base that you might not have access to through traditional channels.
You can also access new features like product quotes, wholesale pricing and sales metrics to improve your B2B service delivery and reach. You can resell existing products to business buyers or choose from several different product categories that are especially lucrative for the B2B market.
We recommend taking the time to set up your seller account and familiarize yourself with the platform. Then, start listing some of your products and services and enjoy the amazing benefits of selling on Amazon Business!
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Now that you have discovered the B2B market, you may be wondering how to find new product ideas for this profitable niche. Read our how to find great B2B product ideas guide to start selling faster on Amazon B2B!