Key Takeaways
- What is Amazon B2B? Amazon B2B refers to Amazon Business, Amazon’s business-to-business selling & purchasing marketplace that is growing significantly faster than their B2C marketplace.
- Amazon B2B enables your company to become an Amazon Business Seller to sell in bulk with quantity discounts, accept “Requests for Quotes” (RFQs), and offer tax exemption to verified businesses.
- If you’re an Amazon Business Seller or are looking to become one, you will learn EXACTLY what Amazon B2B is, how Amazon B2B works for buyers, and how the new B2B Central Dashboard works for sellers.
In over 10 years as an eCommerce Fractional CMO, Amazon Consultant, and eCommerce Marketing Consultant, not to mention CEO, I’ve seen just about every mistake and the lessons from them. That means you get all the learnings without the scars.
Imagine selling B2B without sales reps’ salaries, commissions, and per diems. Sounds pretty great, right? Well, did you know you can do this on the SAME marketplace you sell to consumers? You can! It’s Amazon B2B using an Amazon Business Account.
What is Amazon B2B? Amazon B2B is Amazon’s mechanism for businesses to sell their products directly to other businesses through Amazon’s B2B Marketplace, Amazon Business.
What is Amazon Business? Amazon Business is Amazon’s B2B marketplace that allows businesses of any size to register for a Business Account and purchase supplies at various bulk rate discounts.
By reading this article, you’ll know if Amazon B2B is right for your business as well as how to get started and how to thrive at Amazon B2B on Amazon Business straight from a consultant for Amazon.
What is Amazon B2B?
Selling B2B on Amazon through Amazon Business allows Businesses with an Amazon Business Account to sell and purchase products, both one-off and in bulk with various discounts on Amazon’s marketplace.
There are 2 programs involved in Amazon B2B for Amazon Business.
- First, there is a program for sellers called the Amazon Business Sellers Program.
- Next, there is a program for buyers called the Amazon Business Buyers Program.
So, what does a business account for Amazon mean for you?
When I’m working with Amazon Consulting clients, I break it down like this:
Amazon Business Sellers Program
Businesses can sell on Amazon in 2 ways. The fees for both are currently the same, but the functionality differs.
Existing Seller Central Sellers can add Amazon Business Account Features through their Seller Central Account.
Amazon B2B Seller Requirements:
- Sellers need to be on the “Professional Seller” plan ($39.99/mo) to use a Business Account for Amazon.
- Eligibility is based on Seller Account metrics, such as Seller Feedback and past Sales Performance.
- Your existing access to all previous programs will remain the same (Amazon FBA, FBA Small and Light, Sponsored Products, Amazon Home Services, Amazon Payments, etc.)
- Amazon B2B still requires you to drive external traffic to Amazon product listings per the Amazon A10 algorithm.
- NOTE: If Amazon B2B doesn’t show up in your main navigation after registering, you will want to contact Amazon Seller Support.
Amazon Business Buyers Program
The Amazon Business Buyer Program is for buyers with an Amazon Business Account who want to purchase items for their business on the Amazon Marketplace.
Any business, organization, government, or non-profit organization can sign up to buy via Amazon Business with a Business Account for Amazon.
Amazon Business has a robust purchasing system for buyers that allows companies to:
- Control number of users
- Have Purchase Approval Workflows
- Achieve Spend Visibility (Analytics)
- Tax Exemption Management
Who Is Amazon B2B For?
My experience is, Amazon B2B and Amazon Business are perfect for the following types of businesses:
- Retailers with a focus on B2B
- Brands with a focus on B2B
- Retailers who carry SOME products with margins allowing you to target business buyers with bulk orders
- Brands whose product is dual purpose for B2B and B2C with margins allowing you to target business buyers with bulk orders
- Manufacturers & Suppliers with B2B related products that are looking to go directly to your consumer
- Dealers who represent many brands with products conducive to B2B sales
- Wholesalers with B2B related products that are looking to cast a much wider net, making your products available on Amazon
As alluded to above, you don’t have to make your entire catalog available on Amazon Business or go “all in” as they say. You can make SOME of your products available to business buyers.
How Does Amazon B2B Work? (New Features)
Amazon B2B with Amazon Business works by giving benefits to businesses buying on Amazon with a Business Account for Amazon.
Recently, Amazon has added massive updates to B2B, including the B2B Central Dashboard.
New B2B Features for Sellers:
- B2B Central: A dedicated dashboard in Seller Central to view B2B specific metrics, sales breakdowns, and business customer demographics.
- Automated Business Pricing: You no longer have to manually set business prices. You can set rules (e.g., “Always keep business price 5% lower than consumer price”).
- Quantity Discounts (Tiered): You can set up to 5 tiers of quantity discounts to encourage bulk buying.
- Request for Quote (RFQ): This is a game-changer. Business buyers looking to buy large quantities (usually over $1,000 or >999 units) can request a custom discounted quote from you directly through the platform.
- Certifications: Sellers can upload certifications (ISO 9001, Small Business, Veteran-Owned, Minority-Owned) which helps win government and enterprise contracts.
- Tax Exemption Automation (VCS): Using Amazon’s VAT Calculation Service allows Amazon to automatically generate invoices for business buyers, removing a massive manual headache for sellers.
Now, that being said, ultimately this is still Amazon right?
You will still need to get reviews on Amazon in order to improve Amazon SEO and Increase Sales on Amazon. (The Amazon Request a Review Button is a great tactic.)
You will still want to reduce your ACoS on Amazon advertising.
Seller Fulfilled Prime is still an alternative to Amazon FBA for merchant fulfillment.
What Are The Amazon B2B Requirements?
Amazon B2B Requirements focus on top level performance. The metrics are slightly stricter than B2C because business buyers rely on speed and consistency.
| Metric | Standard Seller Requirement | Amazon B2B Seller Requirement |
|---|---|---|
| Order Defect Rate (ODR) | 1% or less | 0.5% or less |
| Pre-Shipment Cancellation | 2.5% or less | Less than 1% |
| Late Shipment Rate | 4.5% or less | Less than 2% |
| Documentation | Standard | Must include Tracking Number, Packing Slip, & Purchase Order (PO) Number on every package. |
But that’s just part of the story, what are the costs for an Amazon Business Account?
How Much Does Amazon B2B Cost?
In my experience offering Amazon Consulting Services at my eCommerce Consultancy, any decision-maker at a company has probably asked “yeah, but how much does it cost?” ten times by now.
Amazon B2B Costs:
- Professional Seller Plan: Minimum requirement for Amazon Business is $39.99 / mo.
- Referral Fees: Amazon charges referral fees, BUT for B2B transactions, they often offer lower fee tiers for bulk orders.
- Example: A category might have a 15% fee for orders under $1,000, but drop to 10% or 6% for orders over $3,000. This incentivizes sellers to move bulk inventory.
Pros and Cons of Amazon B2B
In my experience in Amazon Consulting, Amazon is a complex beast so it’s important to know the real world practical Pros and Cons of Amazon B2B / Amazon Business.
| Amazon B2B PROS | Amazon B2B CONS |
|---|---|
| High Volume: Quickly reach buyers purchasing pallets or bulk quantities. | Lower Margins: Business pricing generally requires discounts, lowering per-unit margin. |
| Credentials: Display certifications (Small Business, Veteran Owned) to win government contracts. | Strict Metrics: Performance requirements are roughly double the strictness of B2C. |
| RFQs: Ability to negotiate custom quotes for massive orders directly in the portal. | Customer Service: Business buyers are more demanding regarding invoices, PO numbers, and quotes. |
| Lower Fees: Referral fee discounts on high-value B2B transactions. | Competition: Competing against major distributors and wholesalers. |
Is Amazon B2B Right For My Business?
Simply stated, yes Amazon B2B is right for your business if you can:
- Fulfill high volume orders
- Answer quote (RFQ) & customer service questions
- Offer business only discount pricing on one-off purchases
- Offer quantity pricing
- Offer products that businesses will need & use
- Meet the margin requirements that account for fees, shipping, tax exemptions, etc.
On the other hand, if the numbers don’t add up at this point, then it isn’t a good fit.
Also, from a marketing mechanism standpoint, it’s a great opportunity for businesses where the numbers make sense because it’s less competitive from an Amazon SEO standpoint and it’s much easier to get visibility to increase sales on Amazon.
Get The Full List of B2B Certifications
Learn Every Amazon B2B Certification To Drive Sales Right Now
Like I mentioned earlier, Amazon is a complex beast. One other note here, brands will still need to register with Amazons Brand Registry to get the full benefits such as Amazon A+ Content and Amazon Storefronts. (Learn more: Amazon Brand Registry: The Complete Guide)
How To Get Started With Amazon B2B
How do you get started with Amazon B2B? Just sign up!
Easy peasy.
If you’re a new seller and haven’t started selling yet on Amazon, you will just sign up through the sign-up page. Existing Amazon Professional Sellers through Amazon Seller Central can enroll directly through Amazon Seller Central.
In my experience, due to the stricter performance standards, it makes a lot of sense to cover the new guidelines with your warehouse staff prior to getting started.
Plus, you’ve likely geared your Amazon listings for a B2C focus so some Amazon Listing Optimization will be in order to appeal to a business buyer.
Don’t forget Amazon Influencers to boost your Amazon SEO and drive down that ACoS for those Amazon B2B products.
Frequently Asked Questions
Do I Need To Be Brand Registered To Use Amazon B2B?
No, you do not need Brand Registry to use B2B features, but Brand Registry does unlock content features like A+ Content which help B2B conversions.
How Can I Sell My Products To Business Customers With Amazon B2B?
Simply enroll in Amazon B2B via your Professional Seller Central account settings.
What is Amazon Business Only Pricing?
Amazon Sellers selling with Amazon B2B can set prices that only customers using an Amazon Business account can see. Regular consumer buyers will still see the standard price.
How Much is Amazon Business?
It is free for sellers who enroll, provided you maintain a Professional Seller plan ($39.99/mo).
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