Launched in 2015, Amazon Business was the e-commerce giant’s move to take a big share of the B2B market.
Essentially an expanded version of its now-defunct Amazon Supply program, it aims to be the one-stop-shop for both large and small businesses looking to purchase supplies and materials needed to run their operations.
Bank of America estimates that by 2021, Amazon Business will have a 10% share in the U.S. B2B market and a 5% share worldwide.
At that point, the company can boost its revenue anywhere between $125 to $245 billion.
Right now, Amazon Business generates more than $10 billion in annual revenue and this number continues to go up.
Their business customers are some of the biggest companies in the world, catering to half of Fortune 100 companies, as well as educational organizations, hospitals, and local governments.
Clearly, Amazon Business is poised to grow bigger within the next few years and is set to be a key revenue generator for the world’s “Everything Store.”
But what exactly is Amazon Business and how can your company benefit from it?
This article will reveal everything you need to know.
What Is Amazon Business?
As their website slogan proudly says, Amazon Business is “Everything you love about Amazon, for your business.”
It provides all the benefits and conveniences of shopping on Amazon but with a focus on features and perks designed for its business customers.
The best part?
It’s absolutely free!
The service allows companies to purchase inventory, industrial equipment, office supplies, tools, software, and all sorts of items for their business needs.
Amazon Business account holders will have access to all of these at discounted business-only prices plus a slew of perks exclusive only to its users.
Take Uber, for example.
The ride-hailing company needed a formal purchasing process that would allow them to keep up with the rapid growth they were experiencing a few years ago.
When Amazon Business was launched in 2015, Uber was one of the first big companies to sign up for its services.
They said the service allowed them to replace multiple vendors and still have access to a wide range of products with an excellent fulfillment service and a highly useful analytics dashboard for tracking their purchases.
Aside from being Amazon’s customers, businesses can also sign up and sell their own merchandise by signing up for the Amazon Business Seller program.
This allows B2B companies to leverage Amazon’s vast ecosystem as their business marketplace to reach and sell to other companies with the added bonus of quantity and business pricing, along with a host of other Amazon business exclusive features.
Amazon sellers can also use Amazon’s FBA service to make their fulfillment process (storage, packing, and shipping) easier and more convenient to implement.
The Benefits of Amazon Business
Aside from getting access to Amazon’s huge selection of business-focused products, what do Amazon Business customers get when they sign up?
What sets it apart from Amazon Prime?
Save More on Business-Only Pricing
Suppliers and other third-party B2B sellers offer quantity discounts and business-exclusive pricing to Amazon Business account holders.
You can make price comparisons from different sellers on a single page and easily browse through its wide selection of products.
In addition, the Amazon Tax Exemption Program (ATEP) allows businesses to make tax-exempt purchases on eligible orders for even more savings.
This feature is also offered to third-party sellers though they are not required to participate.
Custom Product Search and Browsing
Amazon business allows you to create a customized product search and browse categories that are tailor-fit for your business.
This makes looking for company-approved products easier to perform.
It also speeds up the procurement process.
Quick and Easy Shipping
When it comes to shipping products, very few companies come close to Amazon’s business experience and world-class logistics network.
All eligible items worth $25 or more get shipped for free.
And if you sign up for Amazon Business Prime, you can receive free same-day, one or two-day shipping on eligible products.
Amazon also offers you the option to consolidate your orders via their Pallet Shipping option.
For qualified purchases, Amazon can have it delivered to your doorstep or to a specified receiving dock.
Streamlined Purchasing System and Analytics
Each company typically has its own purchasing system for use during procurement.
Amazon recognizes this, so they built a self-registration tool to make it easy for companies to link their purchasing system.
You can set up multiple user accounts and create approval workflows for a highly coordinated purchasing system that matches your company’s organizational structure.
You can also monitor and track all transactions made by your company’s Amazon Business account.
They provide analytics that quickly allows you to make graphs and tables so you can easily create reports for your company records.
Multiple Payment Methods
You can choose to pay for your company purchases using major credit cards and debit cards like Visa, Amex, Mastercard, and others.
You can add checking accounts (either business or personal) and set it up for shared or individual settings.
Amazon Business offers “Pay by Invoice,” a credit-line option that will allow customers to pay on net terms after they receive the goods.
Let’s say your company ordered several items within the last three days.
Instead of having to pay for each product on a per-transaction basis, Amazon will send a single invoice instead containing the list of items purchased within the last five days.
The invoice will contain the payment information and due date.
Pay by Invoice is currently offered via invite only and no other details are provided on the Amazon website as to who gets invited.
If your business qualifies, however, you will receive an email from Amazon explaining it along with details on how to activate it and how to set it up.
You can also apply for a line of credit from Synchrony Bank and use it for your business product purchases.
Amazon Business Prime
For companies who want even more control over their procurement process and need better shipping options, there’s Amazon Business Prime.
This upgraded version of the free Amazon Business account is offered in four types of plans based on the size of your company.
We’ll explain what these perks mean below:
Business Prime Essentials
- $179 per year
- Up to three users
- Free two-day shipping
- One-day shipping on eligible orders
- 5% back or 90-day terms for Amex users
- Exclusive access to Business Prime deals
Business Prime Small
- $499 per year
- Up to 10 users
- Spend Visibility
- Extended terms for Pay by Invoice
- 5% back or 90-day terms for Amex users
- Guided buying
- Exclusive access to Business Prime deals
Business Prime Medium
- $1,299 per year
- Up to 100 users
- Spend Visibility
- Extended terms for Pay by Invoice
- 5% back or 90-day terms for Amex users
- Guided buying
- Exclusive access to Business Prime deals
Business Prime Enterprise
- $10,099 per year
- More than 100 users
- Spend Visibility
- Extended terms for Pay by Invoice
- 5% back or 90-day terms for Amex users
- Guided buying
- Exclusive access to Business Prime deals
The Perks
When you opt to get an Amazon Business Prime membership over just an Amazon Prime account you’ll have access to the following features:
Guided Buying
This feature allows Amazon Business account admins to steer their users toward the right products and suppliers and prevent them from selecting certain product categories.
If you’re the user, it acts as a quick reference if you want to know which items or products qualify as eligible purchases.
Eligible items will be marked with a “Preferred” icon (a green check mark) while unapproved ones will be tagged with the “Restricted” icon.
The image above shows you what it looks like when a buyer is looking at a restricted product.
Spend Visibility
This feature enables users to track and analyze their spending habits and buying patterns so they can make better buying decisions in the future for both compliance purposes and savings opportunities.
Prime Shipping Options
Aside from the free two-day shipping, purchase orders priced higher than $35 are eligible for same-day and one-day shipping (orders should be placed before noon).
You also get access to Amazon Day, a feature that allows businesses to set specific days within the week to receive their orders.
It helps streamline their purchasing schedule and make their procurement more efficient.
Pay by Invoice Extended Terms
You can opt for a 45- or 60-day payment term if you use the Pay by Invoice option, Amazon’s buy now, pay later feature that doesn’t incur fees or additional costs.
Perks for Amex Users
Businesses who make purchases using American Express cards can get an extended 90-day payment term or instant 5% cash back (applicable to purchases made at Amazon business, AWS, Whole Foods Market).
How to Sign Up for Amazon Business
Signing up for Amazon Business is easy.
First, visit the Amazon Business page and click the “Create Free Account” button.
You don’t need an Amazon account to begin.
On the next page, enter your work email address in the box provided.
The next step will require you to enter the following information:
- Name
- Password
- Verify Password
After providing the above information, the last step is to provide your business details.
Once done, click the “Create Business Account” button at the bottom.
Amazon will review your application and verify your business details.
Within 24 hours you will receive confirmation if your application has been approved.
Get Started With Amazon Business
We’re sure your Amazon Prime account has done you well thus far, but Amazon Business is a godsend for companies and businesses looking to make their procurement process easy and flexible.
The discounts and business product exclusive pricing alone (including the tax exemption benefits) are worth signing up for the savings they bring.
This and other useful features like their intuitive purchasing systems and analytics, robust shipping options, and flexible payment methods make Amazon Business a must-have for business owners.
Also consider signing up for Amazon Business Prime, especially if you are a large business that constantly makes purchases and needs more control over the shipping and procurement process.
Sign up for Amazon Business for free or Amazon Business Prime today.
[gw_subscribe style=”circles”]
