Amazon Business, one of Amazon’s fastest-growing ventures, achieved $35 billion in annualized sales in 2023, cementing its role as a significant player in the business-to-business (B2B) marketplace. As companies of all sizes continue to streamline their procurement processes, Amazon Business is providing them with the tools, resources, and features that leverage Amazon’s vast infrastructure. Here’s a closer look at what Amazon Business offers, how it works, and why it’s reshaping the way businesses buy.
What Is Amazon Business?
Launched in 2015, Amazon Business is a tailored version of Amazon.com designed specifically to meet the needs of businesses, institutions, and government entities. It allows these customers to purchase office supplies, IT equipment, industrial tools, and more in bulk with the same ease and efficiency they experience when shopping on Amazon.com. Alexandre Gagnon, Vice President of Worldwide Amazon Business, highlighted that Amazon’s goal has always been to innovate on behalf of the customer. With Amazon Business, the focus has been on adapting the company’s retail infrastructure to support organizations’ unique purchasing needs.
Who Uses Amazon Business?
Amazon Business has grown exponentially, now serving over 6 million customers worldwide, ranging from small local shops to large corporations like Intel and Citi. It’s also popular among educational institutions, hospitals, and even governmental entities like the U.S. Air Force and the state of Utah. In fact, 96 of the Fortune 100 companies are active users of Amazon Business. These organizations benefit from features such as customizable purchasing controls, integrations with over 100 procurement and ERP systems, and access to a wide selection of products.
Key Features of Amazon Business
- Customizable Buying Experience: Businesses can integrate their purchasing policies directly into the Amazon Business platform, making it easier to control spending. Features like “Guided Buying” ensure that employees purchase approved items, which helps maintain compliance with company policies. Business customers can set preferences to prioritize local or certified suppliers, such as veteran-owned or sustainability-certified vendors.
- Business Prime Membership: Similar to Amazon Prime but designed for business needs, Business Prime offers benefits like fast, free shipping, exclusive discounts, and access to advanced analytics tools like “Spend Visibility.” These features enable businesses to track their expenditures more effectively and identify savings opportunities.
- Competitive Bidding and Quotes: For large purchases, Amazon Business offers a “request for quote” feature, where businesses can solicit bids from multiple sellers. This process helps secure competitive pricing for bulk orders, whether it’s for office furniture or industrial equipment.
- Integration with Procurement Systems: Amazon Business supports seamless integration with procurement and financial systems, such as Coupa and SAP Ariba, enabling businesses to streamline their purchasing processes. This reduces manual input and paperwork, making the entire procurement process more efficient.
- Support for Small and Diverse Sellers: Amazon Business also empowers small and diverse sellers to reach a broader audience. With certifications like woman-owned or veteran-owned businesses integrated into the platform, procurement officers can easily support local and minority-owned businesses, fostering community engagement.
How Amazon Business Is Transforming Procurement
Amazon Business’s growth is not just about scale but also about the shift in how companies approach procurement. Traditional procurement often involves lengthy negotiations and working with a limited number of suppliers. Amazon Business disrupts this model by giving businesses access to millions of products and hundreds of thousands of sellers all in one place.
For large corporations, this digital procurement approach allows for increased efficiency and cost savings. Instead of managing multiple vendor relationships, they can consolidate purchases through Amazon Business, all while benefiting from Amazon’s logistics and delivery capabilities. As Doug Herrington, CEO of Amazon Worldwide Stores, notes, Amazon Business is continually innovating to meet the unique needs of business customers, whether through custom purchasing controls or by simplifying large-scale transactions.
The Small Business Advantage
Amazon Business is not only for large enterprises. Small businesses, too, benefit significantly from the streamlined processes and cost-saving opportunities it offers. They can take advantage of Business Prime Duo, which provides fast, free shipping on eligible items. Additionally, small businesses can access a range of analytics tools that were previously reserved for larger companies, helping them make more informed purchasing decisions.
Small businesses also have a unique opportunity to market themselves on Amazon Business, reaching large organizations that prioritize supporting local and diverse suppliers. This opens up new avenues for growth and community impact.
Where Is Amazon Business Available?
Amazon Business has expanded beyond the U.S. to numerous markets, including Canada, the UK, Germany, France, Italy, Spain, Japan, India, and Mexico. This global reach means that businesses worldwide can tap into Amazon’s vast network of suppliers, logistics, and digital tools to improve their procurement processes.
What’s Next for Amazon Business?
Despite its impressive growth, Amazon Business still has plenty of room to expand. As Todd Heimes, Director of Amazon Business, points out, there are millions of small businesses globally spending trillions annually on procurement. Amazon Business aims to capture a larger share of this market by continually improving its offerings, enhancing integration capabilities, and expanding its global reach.
The future of Amazon Business involves further innovation in artificial intelligence and machine learning. These technologies can help streamline procurement processes even further by automating decision-making, predicting supply chain needs, and providing insights to help businesses optimize their spending.
Final Thoughts: Why Amazon Business Matters
Amazon Business is reshaping the procurement landscape by bringing the same convenience, competitive pricing, and user-friendly experience that Amazon.com offers to a B2B setting. Its unique ability to serve both small businesses and large enterprises makes it a versatile solution for organizations looking to optimize their purchasing processes. With tools for better spend management, access to a wide range of suppliers, and a focus on innovation, Amazon Business is positioned to continue its rapid growth and redefine how companies approach procurement.
As businesses look for ways to cut costs and improve efficiency in an increasingly competitive marketplace, Amazon Business stands out as a powerful ally, providing the technology and infrastructure to meet these needs. Whether you’re a small business owner seeking better control over your expenses or a procurement officer at a large corporation, Amazon Business offers a comprehensive solution for smarter buying in 2024 and beyond.
