Amazon Business has been around for just a couple of years. In that relatively short time, it has seen ten-fold growth. This would seem to present sellers with the best opportunity for brand growth as well. But it won’t be that easy to jump in when the current $10 billion in sales grows by another factor of ten.
Right now, sellers can use the Amazon Business Seller Program to expand and reach potential business customers. That is, if they sell a large volume of re-sellable product.
About Amazon Business
Amazon Business is not the same consumer marketplace as most sellers are used to catering to. The business market is a whole other market that many sellers have never experienced. The Amazon Business Seller Program gives sellers access to that market.
Amazon Business adds business-friendly features and products to the Amazon platform we all know and love. It’s where companies – or business buyers – purchase product from other businesses on Amazon, where they can enjoy the same customer experience.
The Amazon Business Seller Program works best for commercial and industrial products, but you can also make a nice profit on other items, as long as there’s a market for them in bulk. Sellers can leverage Amazon Business to expand sales through business supply chains on top of B2B eCommerce relationships. This unique business-specific platform functions much the same as the consumer platform, but with several benefits and conditions for sellers.
How it Works
Registered business customers have access to Amazon Business with separate logins than an ordinary Amazon account. They can then search for Business Sellers using key credentials and products. Listing optimization works the same way. So does winning the Buy Box. It’s just a separate Business marketplace, somewhat similar to Amazon Supply, but more accessible and user-friendly. Of particular importance is access to both businesses customers and retail consumers on Amazon.
Amazon Business Benefits
Amazon Business Sellers enjoy everything that Professional Sellers do, plus additional exclusive benefits that are only available with the Amazon Business Seller Program. If you join, you can:
- sell the same products on both sites
- integrate with the Professional Seller Program, Prime, and other Amazon services
- use different product listings, content, and pricing
- sell larger quantities
- use product bundling
- enjoy fast and reliable shipping
- enjoy various payment options
- entertain requests for quotes
- access tools for managing accounts and tracking spending, and more.
Here are some key benefits we’d like to detail:
Amazon Business allows sellers access to a new customer market – business buyers. It’s a new way of expanding your opportunities for profitability and reach. You become searchable to Business customers on a separate platform that was specifically designed for B2B relationships such as selling to distributors and resellers rather than direct to retail customers.
With the Amazon Business Seller Program, you’re building relationships based on your brand story, optimized product listings, positive reviews from business customers, and repeat bulk sales.
Business sellers are allowed to establish volume-based pricing and give quantity discounts at different levels or based on order size. This is designed for business buyers, who usually purchase in bulk.
There are also discounted Amazon referral fees for bulk transactions in certain B2B categories. This way, you can boost your profit margins or drop prices to remain competitive without cutting into your margins – all while moving more inventory.
In addition, Amazon Business sellers can enjoy the Tax-Exemption Program where tax exemption is automated on qualified purchases. This makes the buying process even simpler for customers and sellers.
Seller Designation and Credentials
Business sellers get that title underneath their business name on all their listings, the product’s Buy Box and Offers, so they immediately stand out. Buyers will see that even if they are not searching on the business platform. The designation is also a status symbol that denotes trust and credibility since Amazon Business has stricter guidelines than even Professional sellers have to meet.
Amazon Business sellers also have eighteen types of credentials available to them, like quality, diversity, ownership (minority, woman), eco-friendly, and US-manufactured. Customers of Amazon Business will then be able to filter product search using these credentials, allowing them to meet requirements of purchasing often held by government organizations, universities, non-profits, and others.
4. Enhanced Visibility and Content
Amazon Business is easier for business customers to use because it was designed for them. It has less distractions like ads, and searching for products is simpler. This makes it easier for them to find you and make a purchase.
More than that, however, Amazon Business allows you to add enhanced content to your listings that isn’t available to even Professional sellers. This means that you can tell a comprehensive company story with your logo, brand text, and company feedback.
Business customers can also rate and review you, giving you a built-in list of testimonials. You can also create enhanced product descriptions with how-to videos and visuals like CAD drawings, user guides or manuals, and installation materials. On your Supplier page, you can upload your logo, website, email, phone, and other company details. You can also save all your favorite Amazon suppliers so you don’t have to search for previous purchases to make sure you’re restocking from the same, reliable partner.
Even better, Amazon prioritizes Business listings – they favor higher sales momentum and established success indicators to begin with, which are easier to gain when selling in bulk. Then they also feature business sellers because they can give customers better deals.
What to Be Aware of
The Business Seller Program demands a higher level of performance than the Professional Seller Program. Here’s what you need to maintain:
- 9% product quality rate
- 99% in stock rate
- < 1% pre-shipment cancellation rate
- < 2% late shipping rate
- < 0.5% order defect rate
Each purchase must also have:
- a purchase order and tracking number on every package
- a packing slip with every order
- business invoices upon request
If you can handle frequent purchases and meet all these requirements consistently, then joining can be be worthwhile. It can be incredibly difficult to monitor everything, so you should be prepared before you sign up.
Get Started with Amazon Business
Many Professional sellers will have received an invitation like this from Amazon:
We noticed that your products are relevant to business buyers. To expand your reach to business buyers, we invite you to join the Amazon Business Seller program.
Included at no additional cost as a part of the Professional Selling Plan, this program gives you access to exclusive benefits and features such as:
- Tiered referral fee for high value purchases in certain categories
- Ability to enhance your seller profile for business buyers
- Ability to upload enhanced product content such as user guides to your products
Join the program or learn more by clicking “Join Now” below.
If you haven’t received this invitation and are already a Professional Seller, you can also apply for an upgrade to an Amazon Business account. Approval doesn’t take long, and you can often set up your account immediately after registration. You will need to re-enter your business info as well as create all new business listings, product bundles, etc.
Tip: If you do decide to join the Business platform, note that changing business pricing pauses Automated Pricing rules. The that the lowest business price you can give on bulk orders is lower than the minimum you can set on your regular price, so it can sometimes confuse Amazon’s system. Contact support if you have trouble in this area.
If after trying it out you decide you’re not happy with Amazon Business, you can contact Amazon support and go back to the Professional plan.
What to Prepare
- Content – all your listings should be fully optimized, but don’t just copy over from your regular listings. Take full advantage of the enhanced Business options for images, descriptions, reviews, and the like. Prepare the highest quality content that is focused on the commercial value potential of your products.
- Pricing – You need to price your products competitively and secure your margins. Millions of other retailers will be selling through the Business marketplace as it continues to grow, so you need this to be successful.
- Advertising – You need to have a budget set aside for advertising so that you can set up campaigns as soon as the tools become available to you. You will want to hyper-target your ideal buyers to maintain the metrics you need on Amazon Business.
Tip: Have the business market page open in another browser along with the regular Amazon marketplace. That’s where you’ll be able to view your competitor’s business pricing and quantity discounts. If you’re on Seller Central, you will only be able to see your own pricing and discounts. On that separate business interface, you can also monitor the same ASIN versus non-business Amazon so you can manage competing with your regular retail price.
Don’t forget to factor in your offers for tiered quantity and per-unit incremental volume discounts.
Sellers need to act now if they want to make a name for themselves on the Amazon Business platform. The competition is still relatively low, but it won’t remain an open market for long. New business sellers can come out way ahead of the pack if they get in and take hold of the first-mover advantages before it gets crowded.
The Amazon Business Seller Program gives you access to business customers, which is a great opportunity to grow your visibility, sales, and reviews in ways that are not available on a Professional account. The demands are stiff, but if you are committed to the highest standards you can succeed, expanding your company and boosting profits.