In the realm of ecommerce, staying competitive requires embracing the power of online marketplaces and adopting strategic approaches. Heads of Ecommerce, Heads of Marketplace, and CEOs increasingly recognize the transformative potential that marketplaces hold for their businesses. In this article, we will explore the remarkable opportunities presented by Amazon Business, a leading B2B marketplace, and shed light on how leveraging its capabilities can drive success for manufacturers.
Embracing Amazon Business: A Gateway to Unprecedented Growth:
When it comes to B2B marketplaces, Amazon Business stands out as an unparalleled force, propelling over $35 billion in annualized gross sales. With more than half of these sales originating from third-party sellers, this thriving platform has firmly established itself as a powerhouse within the B2B ecommerce landscape.
Designed specifically for procurement and wholesale buying, Amazon Business offers a host of unique features tailored to the needs of businesses. These include bulk buying, quantity discounts, recurring delivery options, purchase orders, flexible payment terms, and even its own Business Prime membership. Moreover, the marketplace provides access to specialized products such as medical supplies that are not available to consumers. By optimizing product design and marketing efforts specifically for Amazon Business, manufacturers can tap into its extensive customer base comprising governments, universities, and hospitals among others.
Unveiling the Impressive Growth Trajectory:
Amazon Business made its debut in the U.S. market in April 2015. In just a year, the marketplace achieved $1 billion in Gross Merchandise Value (GMV), and by the end of 2018, it surpassed the $10 billion mark. Today, Amazon Business operates in multiple countries and has reached a remarkable $35 billion run rate, as revealed in a 2022 letter to Shareholders. This growth trajectory clearly demonstrates the enormous potential for businesses that choose to leverage Amazon Business as a sales channel.
The Broader Impact: Digitizing the B2B Landscape:
Beyond its own success, Amazon Business represents a pivotal example of the broader shift occurring in the B2B ecommerce space. Traditional B2B transactions, often intricate, opaque, and offline, are being digitized and transformed through the advent of B2B marketplaces. With business-to-business spending significantly outweighing consumer spending, there exists a substantial opportunity to capture untapped market potential by transitioning more B2B purchasing activities online.
Seizing the Opportunity:
While Amazon Business primarily focuses on general merchandise, its offerings cater specifically to the unique needs of businesses. As it continues on its path to reaching $100 billion in revenue, there is immense potential for growth in various B2B sectors. Verticalized B2B marketplaces, in particular, hold great promise in meeting the specific demands of industries.
Manufacturers seeking to unlock new avenues of growth and capitalize on the transformative potential of ecommerce must recognize the power of Amazon Business. By partnering with this B2B marketplace giant, businesses gain access to an extensive customer base, higher average order values (AOV), and increased lifetime values (LTV).
Contact our expert team at Optimizon to propel your business forward with Amazon Business.