Amazon unveils new B2B e-commerce marketplace
Amazon Business, a new marketplace for business-to-business e-commerce, is officially launched today. The new offering will enable business shoppers to buy millions of commercial items ranging from office supplies and stationery to heavy-duty industrial equipment.
Amazon Business effectively replaces AmazonSupply.com, which was launched in 2012 and now carries more than two million products, and also takes over the Business, Industrial & Scientific section of Amazon.com. But while Amazon Business may be using these existing elements of the system as its starting point, the company will be hoping for a major leap forward into the B2B e-commerce market.
In order to get access to Amazon Business, buyers will have to register their companies and undergo a vetting process. Registration is free, however, and buyers will receive free two-day shipping on orders costing more than $49.
Amazon Business will feature both items coming directly from Amazon itself as the seller of record and also products from third-party marketplace sellers. The company believes the new site’s role as a business-only market place will enable Amazon to reach out to those sellers that only vend to businesses, thereby opening up a wider array of products.
Amazon will charges third-party sellers a commission. For consumer products, the fee will be 8% of the total transaction value for orders up to $1,000, and 6% for orders above $1,000. For office products, the fee will be: 15% for sales up to 1,000; 10% for sales between $1,001 and $3,000; and 6% on sales of more than $3,000.
Prentis Wilson, vice president of Amazon Business, said that the new site will enable the company to offer a broader range of products and services for buyers and sellers, more useful site search and navigation, and personalised content based on a buyer’s transaction history and business category.
“We’re looking to bring on new sellers, both large and small, who didn’t think of Amazon as the right marketplace for them,” added Wilson.
E-commerce industry watchers say that the launch of the new site is a “clear sign” that Amazon is making a major play for the B2B marketplace and put itself in direct competition with China’s Alibaba.
