Amazon has reportedly invested more than $13 billion in R&D. The user experience on its website has been updated and changed to help in maximizing sales. Amazon Business has features that are tailored to business sellers, such as business pricing, quantity discounts, integration with purchasing software and tax exempt purchases.
Fulfillment by Amazon (FBA) makes fulfilling orders easier by letting Amazon do it for you. You would ship your products to Amazon's warehouse. Those items will be stored until a sale is made where they will then pick, pack, and ship them. Some parts of customer service such as refunds and returns are handled by Amazon for FBA customers.
You can list credentials on your profile if you're a woman-owned small business or if it is owned by someone from a minority. The search can be further refined so that products from minority-owned businesses or small businesses are shown.
What is the value of Amazon Business Prime?
How you use Amazon Business Prime will determine if it is right for your company.
Consider the separate costs of included services and think about how often you order supplies. Compare the cost of these with how much you will have to pay if you get the Business Prime membership.
Use the free 30-day trial to monitor your monthly expenses and see if you can save any money.
It's easy to find free shipping at certain retailers like Staples.
Compare Business Prime to other retail memberships, such as Staples Plus.
This program offers members a one-day delivery service with no minimum purchase requirement, additional reward credits and discounts.
The subscription is cheaper than Amazon Business Prime, despite the fact that it has a smaller range of features.
What Should you consider in the long term?
Manufacturers and distributors often ask if it is better to sell through Amazon or create their own ecommerce website. Both are possible. Amazon is a good platform for business, but it has its downsides. For example, you are forced to rely on the price to make sales and have less control over your customer relationship.
Listing on Amazon increases your product visibility, and for services and such that Amazon may not provide, buyers may turn to your company in search of those things like providing customers help in selecting the correct items and providing support in how to use them.
You can use Amazon as a way to supplement your store in a number of ways. Such methods include selling a subset of your products on Amazon, using Amazon as a testing ground for new items, or seeing how ordering online suits your products. Providing services and other things that are of value to your customer on your website that Amazon does not provide on theirs is a good strategy for bringing customer traffic and growing sales on your site whilst still taking advantage of what Amazon provides.
While Amazon Business is available in eight countries, Amazon Business Prime is only available in three: US, Germany, and Japan.
Business Prime pricing has tiers based on the number of users/Amazon Business account:
You can try out a free 30-day trial here if you've already decided which plan to choose.
The public sector is only available to US government agencies, including federal, state and local governments, as well as non-profit universities and hospitals.
Amazon Business For Registered Sellers
You will then be guided through the setup process. The one who creates will be considered the administrator whose information will be used for verification purposes.
The administrator will then be able to add users who have the ability to add items and groups. They can also create workflows for approval, add numbers of purchase orders, as well as approve them. The administrator can also manage features like shipping addresses and payment methods.
Amazon Prime and Amazon Business can be connected to each other to benefit from things such as shipping. For more information on Amazon Business, visit the landing page.
When you begin purchasing products, you can look at Amazon's Business Analytics and view the data on your orders and make reports.
You can also find out more about Cons
Give up Margin
You could pay fees from 6 to 15 percent based on the category of your product, excluding items that are not commonly sold as business products. FBA fees are not included.
The commodity view
There not as much opportunity for building relationships with your buyers or standing out from the competition. Amazon Business makes it simple and easy for buyers to look for and purchase from vendors who sell their items at the lowest cost.
Limited communication with customers
Amazon limits communication between customers and sellers. These rules also restrict what is allowed to be shipped in customer packages. Amazon does not consider these customers to be yours. They are theirs. You don't have much control over the relationship and your brand is not as well known.
Information and Administration
Getting product information into Amazon can be a challenge. Each product type has its own rules. The way that the product data is set up greatly impacts your product visibility and the likelihood of those products selling.
Advantages For Small Businesses
Amazon Tax Exemption Program offers tax relief to many businesses. Amazon offers a tool that helps you to determine whether you are eligible for the program. The program then allows you to apply your tax-exempt status to eligible purchases from Amazon and all of its affiliates. You don't even need an Amazon Business account to take advantage of this benefit.
Amazon Business' analytics dashboard also offers some transparency to the purchasing and supply chain process.
"Customers can look at their spending activity and total costs on purchases at the individual, purchasing group or type of spend level - giving small businesses the information they need to better control their bottom line," Rohde said.
He said that Amazon Business offers small businesses the chance to increase their sales through the reach of millions of customers in the business world.
How To Join Amazon Business
First, navigate to the Amazon Business landing page. Using the orange button on the left-hand side signs you up for your 30-day free trial. You can register your account by using your email address, followed by proof of business details. Included are your address for business, tax ID number and credit card. Amazon will verify your business within 24 hours. You can monitor the progress of this verification here.
While it is possible for a business to join with Amazon Prime and get the same free shipping and delivery (sales tax is still charged), Amazon Prime does not have the tools and heavier discounts available on Amazon Business due to it being intended for single-user personal use.
Amazon Business Prime membership benefits
Business Prime is not Amazon Prime, including Prime Video.
These benefits are not available to Essentials Plan users.
Should I Use Amazon Business?
Amazon Business can theoretically work for any type of business. For small businesses, making regular delivery of essential office supplies automated or for larger businesses to which is vital that their goods are delivered.
Amazon Business can be used by businesses making a profit by selling to other businesses making the platform a marketplace where they can reach their customers. You can create an Amazon Business Profile if you're a company that sells business essentials at discounted prices in large quantities.
About Amazon Prime
Prime is available internationally in many countries, including the United States, UK, Spain Mexico, Japan India, Italy Germany France China Canada Belgium Austria Australia Singapore Netherlands Luxembourg United Arab Emirates and others.
In 2020, Amazon Prime membership increased. Amazon now charges $119/year for new members who avail of annual Prime membership ($59/year for student registration). A monthly charge of $12.99 is charged ($6.49 to students). There is also a free 30-day free trial for those who want to test out the service.
You can sign up for the free trial by going to Amazon's Prime Free Trial page. Visit the Manage Amazon Prime membership page to change your membership.