Amazon Business

Amazon Business  is the platform on which some companies sell goods to others. Heads or purchasing managers at the enterprises of public sector, education, medicine use service, etc. Besides, Amazon Business is popular among private firms.

The platform allows to buy goods at wholesale prices. Three options of discounts are available:

• Wholesale price (Business Price) — the reduced price for business buyers irrespective of quantity of the purchased goods (for example, the price for buyers on normal Amazon of $10, and for buyers for Amazon Business of $9);

• Quantitative discounts (Quantity Discounts) are purchase discounts more than X pieces of goods (for example, upon purchase it is more than 10 pieces, the price of goods not of $10, but $9).

• The Negotiated Pricing function allows to set the exclusive prices for the specific enterprises and by that to increase the number of loyal clients.

2019: Direct connection with the Edisoft platform

On August 29, 2019 it became known that international provider electronic document management and system integrator Edisoft developed the solution for automatic exchange data with the platform online retailer Amazon. In more detail here.

2018: Turnover in $10 billion a year

In September, 2018 it became known that the platform for sale of the corporate products Amazon Business began to generate to Internet giant $10 billion revenue a year.

For the first year after start of service turnover on it made $1 billion. By September, 2018 the platform works in eight countries, including Germany, Japan, India and the USA. The number of clients is measured by several million, and number of the producers working at the platform — hundreds of thousands.

Amazon earns from the B2B-platform $10 billion a year

Amazon Business is especially popular in the American market where among other clients big educational institutions and hospitals use the platform and also it is more than a half of the largest companies of the list of Fortune 100 and state bodies.

In 2018 service was started in France, Italy and Spain. The international expansion as the head of the British office Amazon Business Bill Burkland told the Business Insider edition, allows the platform grow quicker.

One of the reasons that the companies see value in Amazon Business consists in a wide choice of products. We have almost everything that can be required by the companies, be it civil engineering firm, the producer, legal office or the IT company — Burklend noted.

More than 250 million goods and a set of the functions intended for sellers and buyers are presented in the Amazon Business directory. For example, it is possible to limit a circle of preferable sellers and the product range, it is possible to set politicians who guarantee providing loading of the invoice, Burklend listed.

Most often on Amazon Business computers and peripheral devices for them, office accessories, products to cleaning and other things which "are really necessary to all companies" are on sale.

About a half of sales of Amazon Business is the share of transactions through the third parties. The platform allows small suppliers to gain an access to the large companies with which outside the platform they would hardly begin cooperation, Bill Burklend emphasized.

He added that Amazon will continue to develop innovations and new features and also to expand the range of goods and "depth of categories" within the platform of corporate sales.^[1]

The Amazon Business service has several large competitors. Among them — Staples and Costco Wholesale. According to forecasts of analysts of Forrester Research, online sales of goods in the corporate sector by 2020 will reach 12.1% in a total turnover which volume will be measured by $9.39 trillion. Thus, will fall on an Internet channel more than $1.1 trillion sales. The companies even more often use online trade, refusing the methods losing efficiency, such as viewing printing directories, sending orders by fax and execution of transactions on phone, researchers note.

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