According to the source, the newly launched marketplace aims to disrupt the B2B distribution market. B2B account holders, who are set to be approved to shop based on their tax ID, will be able to compare product prices from multiple sellers on one page, just like they do when they browse Amazon.com from home.
Amazon Business will give US businesses from biotechnology companies to oil and gas firms exclusive pricing and discounts for buying in bulk, free two-day shipping for orders over USD 49, tax exemption and the option to get products delivered with an Amazon guarantee.
A business marketplace will extend Amazon’s role as a middleman for third-party vendors, which account for about 40% of its sales. It would also help Amazon gain an edge in the business-to-business (B2B) online marketplace, which is likely to account for about 12 percent of B2B sales in the US by 2020, according to estimates by Forrester Research.
Business customers have access to products that are only available to businesses. Multiple users would be allowed to use accounts with purchase and approval controls already set in their procurement systems, which is essential for business customers.Amazon Business will be rolled out nationwide across categories including office supplies, IT equipment, janitorial supplies, healthcare products, large industrial equipment, education and food service supplies.
In 2012, Amazon.com quietly launched AmazonSupply, the ecommerce company’s foray into the world of B2B wholesale. By 2014, AmazonSupply was already offering 2.2 million products for sale in 17 categories, from tools and home improvement to janitorial supplies, stocking everything from 12-packs of Hawaiian Punch to schedule-40 stainless steel pipe. But now Amazon has decided to close AmazonSupply, and therefore on May 13, 2015, AmazonSupply will be subsumed into Amazon Business.
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