There’s no denying it: Amazon has evolved beyond being just a retail giant; it's now a pivotal player in the global distribution landscape. With over $40 billion in Gross Merchandise Value (GMV) sold, Amazon Business has firmly entrenched itself as the top distributor in numerous B2B categories. At its core, Amazon Business is designed to cater to B2B buyers, enabling them to research and purchase products from Amazon's vast product catalog. Leveraging Amazon Business is no longer an option for B2B manufacturers, it's a critical component of any go-to-market strategy.
Yet, despite the staggering numbers, Amazon Business remains a mystery to many B2B manufacturers. They often struggle to understand how the platform works and what kind of resources are needed for success. For example, many don’t realize that Amazon Business operates within Amazon.com, displaying key product details, features, and pricing options to business buyers with Amazon Business accounts.
So what does it take to succeed as a B2B manufacturer on the world’s largest Ecommerce platform? Let’s take a closer look at six elements of success on Amazon Business.
1. Set up Business Pricing
B2B buyers often make large purchases, and they expect bulk pricing when working with a vendor—both in the real world and online. Amazon Business allows B2B sellers to set up bulk and tiered pricing levels to cater to buyers’ needs. For instance, if a buyer needs 1,000 units, the seller can offer a discount to secure the sale, just as a traditional distributor might do. But don’t worry, only registered Amazon Business users can see these pricing schemes. All other users will see retail pricing.
Setting up bulk and tiered pricing is foundational to success. Without it, a B2B seller isn’t even at the starting line.
2. Leverage Amazon's Managed Spend and Bulk Buy Programs
Amazon has made significant investment in securing the planned spend budgets at large institutions, including commercial organizations, educational institutions, government agencies, and nonprofits. To tap into this enormous market, Amazon created specific programs designed to capture large purchases from these types of organizations.
On Vendor Central, the more traditional way to sell through Amazon that resembles a wholesale relationship, this business program is called the Retail Deal Desk. On Seller Central, where the manufacturer is selling directly on Amazon as a 3rd party, this is known as the Configure Quote Engine (CQE) program.
Both programs allow pre-qualified sellers to bid for bulk purchases from larger organizations. These purchases often exceed $100,000 and can be both recurring or one-off. Sellers using these programs need to be prepared to negotiate, much as they would for sales through traditional sales channels.
3. Use Request for Quote Functionality
Amazon allows B2B buyers to request quotes from business sellers. These requests, which can be for a specific quantity or use, appear in the seller's Amazon dashboard. This functionality provides sellers the opportunity to interact with buyers and win sales. Ignoring these requests is like not picking up the phone when a customer calls.
4. Optimize Product Listings for Business Buyers
B2B products often require detailed compatibility information and technical specifications that average consumers might not need. These details should be included in your Amazon product listings, such as product descriptions, videos, product imagery, spec sheets, etc.
Additionally, Amazon Business offers specific attributes that help B2B buyers navigate to the right product listings. These can include business or technical certifications such as ISO 9001 or certifications as a minority-owned business. These are crucial to include if you’re selling a regulated product or if your buyers have diversity requirements for purchase decisions.
5. Get Your Products Qualified for Amazon Business Prime
Ensuring your products are Prime eligible can significantly boost visibility and sales. Amazon Business Prime, launched in 2018, is just like consumer-focused Prime, but designed specifically for B2B buyers. The program allows buyers to gain Prime benefits across their organization using a single account, including fast and free delivery options, survey tools, and others.
The easiest way to have your products be Prime-eligible is to use Fulfillment by Amazon (FBA) or sell via 1P to ensure products appear in Amazon Business Prime listings. Just like their B2C counterparts, B2B buyers will often filter search results based on Prime eligibility.
6. Build Relationships with Amazon Business Teams
Developing relationships with Amazon Business representatives can provide access to a wide range of specialized buying programs and opportunities. Amazon has a vast team dedicated to working with both buyers and sellers, and aligning with these reps can unlock new possibilities. At Enciba, we maintain relationships with many Amazon Business reps to uncover such opportunities for our clients on a regular basis, including some that are just being tested.
For example, Amazon Business is launching advertising on the marketplace specifically targeted at B2B buyers, and we’ve been working to connect Amazon with our interested clients to test out their new service. This is only possible because Enceiba maintains a number of relationships with Amazon reps that helps us keep our finger on the pulse for any new opportunities.
Make the Most of Your Amazon Opportunity
Amazon Business is a powerful platform that offers huge opportunities for growth for B2B sellers. Understanding its unique features and functionalities can position your business for success. If you’re looking to grow—or establish--your B2B Amazon presence, Enceiba is here to help! Schedule a meeting with one of our Amazon specialists, and we’ll work with you to develop a winning strategy that can help you make Amazon Business one of your fastest growing sales channels.