How To Use Amazon Business For B2B Ecommerce

By Paul Watson

Traditionally, online retail has been a challenge for B2B online retailers. Now there are platforms that can make the more complex or laborious aspects of migrating and operating your offering considerably easier and less daunting.

New solutions

In the past, many B2B retailers were hesitant to expand their operations to online because they had complex product portfolios and procurement processes which would have been difficult to migrate and coordinate.

Thankfully, due to technological advancements, wholesalers and manufacturers alike can now use a variety of ecommerce platforms that empower them to sell across multiple channels and marketplaces while still delivering a high level of sector expertise to loyal customers. This includes Amazon Business.

Smart solutions are those that integrate and automate all aspects of multichannel trading to remove much of the complexity of trading online - from purchasing, supply, inventory and stock management to order processing, fulfilment, despatch, refunds, returns and customer service.

This blend enables B2B retailers to focus their resources on spotting the best growth opportunities and adjusting their logistics to comply with customers’ needs and Amazon’s requirements.

B2B buying landscape

Today’s B2B buyers are playing by new rules, eschewing traditional methods of identifying and procuring goods through paper catalogues or from field sales forces, and are instead researching and purchasing online.

In response, the main growth driver for manufacturers and distributors of B2B goods has also changed, with the focus now on online sales. As recent research reveals, their objective is to increase ecommerce as a proportion of their revenue mix from 35% to more than 50%.

To achieve this, online retailers need to adjust their customer engagement strategies and make their offerings appealing on mobile or laptops rather than through phone conversations or face to face meetings.

What is Amazon Business?

In its simplest form, Amazon Business UK enables companies to buy and sell business items. From laptops to paper clips, this new channel caters to the procurement needs of private and public businesses of every size by emulating the consumer marketplace Amazon has already excelled at.

Amazon first launched its business channel in the US, where after just one year of activity had generated sales of over $1 billion (£800 million). The giant marketplace had an equally successful launch in Germany where it is now serving more than 50,000 organisations.

Designed specifically to support the business community, Amazon Business promotes features such as business-only savings, special delivery arrangements and multi-user accounts that facilitate commercial purchasing and selling.

As far as UK corporate sales teams are concerned, the arrival of Amazon Business delivers a golden opportunity to take a larger slice of a market which is already estimated to be worth £96.5 billion, and is on the cusp of significantly greater growth.

The platform’s advantages

Amazon’s reach, sales expertise and extensive fulfilment network are also important resources that B2B online retailers can now leverage to expand their businesses and attract new customers both nationally and internationally.

All these elements help manufacturers and wholesalers to take advantage of this new opportunity and grow their businesses at a faster pace.

Wholesalers are deeply familiar with their customers and should utilise Amazon’s features to create a competitive, personal and smooth buying experience. They will also find that procurement professionals are familiar with Amazon’s retail experience and prefer this route to the heavy paperwork that accompanies complex traditional order systems.

Manufacturers can better manage their ‘long tail’ products that buyers purchase only occasionally and outside the standard procurement contract. They too can reach a broader, more diverse buyer base.

In both cases, there is great value in being able to accurately pinpoint pricing and offer advantageous delivery arrangements through a fluid online experience such as Amazon Business.

How to begin

Sellers already using Amazon to reach consumers can simply add new features to their existing accounts for a smooth transition to Amazon Business.

Those who are only interested in the Business service can sign up, taking note that they will need to comply with Amazon’s delivery requirements.

It’s important to bear in mind that, although the Amazon Business interface is familiar, B2B merchants must keep the demands of the buyer front-of-mind and meet their expectations at every stage of their journey.

Product listing data, for example, is a challenge for any ecommerce seller, particularly considering how each day will see hundreds, possibly thousands, of products added to the marketplace. If there’s one thing guaranteed to frustrate the B2B buyer, it’s the inability to find the product they are looking for quickly. So, it’s vital to ensure products are listed clearly and concisely.

Bundles and product suggestions can also help products stand out. Each bundle creates a unique listing on Amazon Business which means there will be no competition on the listing page. Crucially, this means the seller wins the ‘Buy Box’ which generates 80% of Amazon sales.

To make personalised offers work effectively, sellers can follow purchasing trends and try to answer customer needs in advance. B2B buyers have considerable budgets to spend, so it’s worth the effort to become more visible.

Another crucial element of selling on Amazon Business is delivery time and efficiency. The more effort you put into offering, supporting and fulfilling delivery promises, the more repeat customers you’ll attract.

Conclusion

Trading on a new channel can seem daunting, but with automation designed to facilitate that change, there is every reason for manufacturers and wholesalers to take advantage of the many features being offered by Amazon Business by becoming part of the burgeoning and highly profitable B2B ecommerce opportunity.

This new channel is bound to shake up the British B2B market and businesses which want to survive and thrive simply cannot ignore this opportunity.

In order to make the most out of Amazon Business, remember to: