Amazon is undoubtedly one of the companies that has achieved the key to success, and has applied it in each of its different divisions, services and functions, something that has allowed it to be considered, having
A group of companies that, beyond its iconic online-marketplace store, includes such popular services as the streaming service Amazon Prime Videoa social network like Twitter or a marketplace for freelancers like MechanicalTurk. In the same way, although to a lesser extent, we have been able to appreciate good results in some of its lines of business within the online store itself, as in the case of AmazonFresh. An approach that has been taking hold in the population loyal to the brand, . Another of those lines of business within Amazon, and relatively little known, is Amazon Business,
Amazon Business: Buying steel barrels and industrial fryers through Amazon
In April 2015, the giant of the western eCommerce sphere announced the launch of a new e-commerce portal aimed at companies and businesses. With this, the company delved fully into B2B commerce, with a structure based on its usual marketplace, but with special news for companies.
6 years after its launch, this ambitious project is operational in United States, Canada, Spain, Italy, Germany, Japan and India, thus reaching half of the official stores that its platform has for consumers. Even so, its international expansion is not the most remarkable thing about this business of the retail giant, but what it has managed to achieve in 6 years, in terms of volume of operations, or GMV for its acronym in English. Which basically refers to the total sales amount, without taking into account deductions.
As we can see in this article, Amazon’s commitment to B2B commerce has had incredible growth in recent years. A year after its launch, it had already amassed a total of 1,000 million dollars from GMV, just over 800 million euros. A) Yes, in the following two years it multiplied its total sales by 10, reaching 10,000 million dollars by 2018.
Finally in 2020, as published by the company on March 15, Amazon Business reached a GMV of 25,000 million dollars, about 21,000 million euros. In this way, it was able to reach this sales goal in less than half the time of its main consumer sales business. To give you an idea of what this figure means, it is almost half of the entire
In any case, it’s not the first time that Amazon enters the B2B. For years it had been developing this market in the United States through Amazon Supplya proposal to offer specialized products to selected industries.
The key to Amazon Business success
Amazon Business was not only endorsed by the Amazon brand, but also developed several features that helped it grow. Thus, the clients of this business have exclusive conditions designed for companies, among which are the multiuser accounts, which allows defining groups of users to manage purchases under the same payment method or the same address. In addition, as in its most popular version, this B2B portal has Business Prime, a paid subscription that offers unlimited free shipping on eligible orders.
On the other hand, it also has different payment solutions, such as credits and exclusive savings for bulk purchases, as well as analytical tools, which allow tracking individual, group and complete spending of the entire company. At the cost control level, companies can establish which users will make the purchases and who will supervise themcreating approval flows if necessary.
In the same way, Amazon has always been a window for its sellers to expand their client portfolio, and this model is the same. Shoppers using Amazon Business include 55 of the Fortune 100 companies, a list of America’s most prominent companies, as well as 54% of the IBEX35 companies in Spain. Companies to which the small businesses that make a living in this particular marketplace would not have had access otherwise.
Despite all this growth that Amazon Business presents, it is one of the least publicized, or well-known, businesses of the eCommerce giant. With the incorporation last year of a section of articles related to Covid-19, it achieved greater visibility to new companies and markets, something that undoubtedly helped this great growth in its GMV.
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