Amazon Business is a unique feature within Amazon that’s markedly different from your personal shopping experience. It’s designed specifically for businesses to sell to other businesses, while offering special discounts for bulk purchases.
Even if you aren’t sure if your products are a good fit to sell on Amazon Business, there are many types of businesses who buy on Amazon outside of the traditional “corporation”, such as hair salons, dog trainers, and plant nurseries. No matter your business, there’s probably a niche in Amazon Business for you!
We’re breaking down everything you need to know about Amazon Business — from what it is, to who should use it, to the benefits for both buyers and sellers.
What is Amazon Business?
Amazon Business allows businesses of any size to streamline their wholesale purchases for their business. Whether your business is furnishing its office, restocking supplies, or upgrading your technology, Amazon Business allows you to receive special business discounts, buy in bulk, and negotiate pricing on many products available on Amazon.com.
Who Uses Amazon Business?
Amazon boasts that Amazon Business has over 8 million active customers worldwide, and that 96 of the Fortune 100 companies utilize it as well. It’s a massive program that can benefit businesses of any size, not just large corporations. Whether you’re a sole proprietor or have thousands of employees, Amazon Business can be a good fit for your business.
Why Should Businesses Sign Up for It?
Savings and Discounts
One of the primary benefits of Amazon Business is that you can receive discounts on products you regularly order. Like your personal shopping on Amazon, Amazon business offers Subscribe and Save. This 5–15% discount is perfect for products you regularly restock.
Additionally, you can receive Quantity Discounts in Amazon Business for products you buy in bulk, which allows you to receive pricing discounts at different quantity tiers, starting at just two units, according to Amazon. Businesses also have the option to request quotes for single-SKU purchases greater than $10,000 or 999 units.
Streamlined Workflows
Amazon Business also allows you to easily handle budget management by setting caps for spending, so your team is clear on limits. You can also set up approval workflows to maximize efficiency and ensure the right people are approving the right purchases. Lastly, Amazon Business also integrates with over 100 eProcurement solutions to keep everything organized.
What Tools Does Amazon Offer Sellers in Amazon Business?
Negotiated Pricing
As briefly mentioned previously, sellers have the opportunity to privately negotiate with sellers to receive discounts exclusive to them. These are not public discounts; they are private offers directly communicated from the seller to the purchaser.
Forming these relationships between businesses can be beneficial to both parties. Sellers can build long-term purchasing relationships with purchasers, and purchasers can receive discounts on products they regularly buy in bulk.
Business Pricing
More generally, businesses can receive special business pricing that isn’t available when shopping on a personal Amazon account. By signing up for an Amazon Business account, you open your business up to receiving discounts like we mentioned earlier, such as Subscribe and Save, Quantity Discounts, and negotiated pricing.
Best Practices for Creating your Business Seller Profile
Set Up Your B2B Profile
It might seem obvious, but you need to set up your Amazon Business B2B profile in order to sell on Amazon Business. It’s fairly straightforward and requires some simple documentation of your business.
While setting up your profile, you must ensure that you have business pricing inserted for every item. If you don’t set up business pricing, the item won’t appear to potential buyers.
While setting up your profile, you should also set up any other certifications your business might have, such as small business, minority-owned, and more.
Section 889 Certification
If you are looking to sell to the United States government via Amazon Business, your business will need to receive a Section 889 Certification. According to Amazon, this certification “verifies that you do not sell or use telecommunication equipment that come from five specific manufacturers: Huawei, ZTE, Hikvision, Hytera Hangzhou, Dahua, as well as their subsidiaries and affiliates.”
By getting this certification, government buyers will be able to see your product listings and purchase from your business. To get certified, you can visit SAM.gov or complete the 889 self-certification form. You must renew your certification every year to stay compliant.
Results of Using Amazon Business
Many Sellers might think that their products wouldn’t be a good fit for Amazon Business — but the truth is there are many products that might not have a clear B2B angle that could still do well on Amazon Business.
For example, if you sell hair care products, you might think Amazon Business isn’t worth it for you as a Seller; coffee shops or tech companies aren’t going to buy shampoo every month.
However, small salons could be stocking up on your products on Amazon. By offering quantity discounts, you might incentivize them to buy more from you or sign up for subscriptions.
If you’re interested in learning more about selling via Amazon Business, watch our webinar with Carolyn Lowe of ROI Swift.
