Amazon B2B: The Pros and Cons of Amazon Business

In 2015, Amazon launched a business-to-business (B2B) marketplace to claim a slice of the rapidly increasing need for B2B ecommerce. Providing a convenient way for businesses to order items on-demand gave the ecommerce giant a glimpse at the wants and needs of business buyers.

Buyers expect the same seamless self-service their consumer experiences when they move purchasing decisions for their businesses. The B2B market is just as responsive to a broad selection, robust product pages, and convenient online experience as consumers. 

As your brand develops a roadmap to Amazon B2B ecommerce success, Amazon Business could play an important role in your strategy. 

What Is Amazon Business?

Amazon Business is a marketplace that provides a convenient way for businesses and organizations of any size to order or sell items like:

• Printer paper; 
• Bottled water; 
• Paper towels; 
• Breakroom supplies; and 
• IT cables on-demand. 

Suppliers and buyers can find all types of products, ranging from industrial supplies to lab and medical equipment. 

How Does Amazon B2B Work?

One of the biggest roadblocks for B2B suppliers to adopt ecommerce is the complexity of B2B purchases — discounts, bulk packaging, invoicing, size variations — the list goes on. Amazon Business recognized this and developed its marketplace to tackle these concerns. 

The Amazon Business Seller program sets sellers up with the features they need to thrive on Amazon Business. 

Amazon Business Selling Partners can: 

• Control pricing and fulfillment; 
• Promote their business; 
• Use the dashboard to manage their store and gain insights;
• Participate in the Amazon Tax-Exemption program; and
• Offer products that are specifically for business customers.

It’s been developed to mimic business-to-consumer (B2C) experiences while tackling the challenges and complexities of the B2B purchase. 

Pros and Cons of Amazon B2B 

Pros of Amazon B2B

• Amazon Business provides suppliers the ability to access over 150,000+ sellers with hundreds of millions of products for the business buyer.
• Sellers can restrict offers to businesses that are deemed Amazon Verified Business Customers, and they’re able to configure product selection and offers as is done in a traditional sales channel. 
• You may get more brand visibility and connect with customers you wouldn’t otherwise.
• Fulfillment by Amazon (FBA) takes the pressure of dealing with shipping and handling off of the seller. 

While B2B on Amazon Business can be largely beneficial for brands, there are drawbacks to consider before taking the leap. 

Cons of Amazon B2B

• In addition to paying a monthly subscription fee, most sellers are required to pay additional fees, according to Amazon Seller Central. 
• Standing out from competitors is more difficult because buyers can easily bypass your products for cheaper items from a different seller. 
• It’s much more difficult to establish strong brand loyalty.
• FBA costs money, and a bad shipping experience may turn customers away from your product. However, you can opt for merchant fulfillment instead. 

Is Amazon B2B Right for My Business?

For B2B buyers who are used to the shopping experience of Amazon, looking to it for business purchases is a natural move.

Amazon Business is a critical part of any B2B supplier’s toolkit for increasing revenue, growing market share, and finding new customers.