It’s estimated that Amazon’s Business growth can reach a gross merchandise volume of $33.7 billion by 2023. This estimate also includes the third-party and first-party sales.
Amazon Business (B2B) is a new launch on the Amazon.in marketplace to serve the needs of Business Customers. Sellers can expand their B2B sales on Amazon.in with exclusive ways to target Business Customers. Amazon Verified Business Customers benefit from business-tailored features such as business price, quantity discounts, business compliant invoices, and business only offers.
According to the 2012 B2B Buyers Survey from Digital Commerce 360, as many as 90 purchasing managers reveal that 40% of B2B buyers are doing at least 11% of their corporate buying on marketplaces. The survey also suggested that 20% were making more than one-quarter of all purchases on online marketplaces.
Around 72% of the respondents said research and purchase products on Amazon more than any other marketplaces. As per the survey, the following was the breakdown:
Which of the following marketplace do you use for research and/or to buy B2B products?
Amazon is leading as in their B2B marketplace, whereas other players are playing catch up. It is estimated that more than 50% of buyers will increase their spending on Amazon next year.
Now the US-based e-commerce giant will focus on the procurement needs of SMBs like technology and service companies, manufacturers, universities, schools, and offices.
When Amazon muscled into the B2B market space, they earned only $1 Billion during their first year of operations back in 2015. They ended up earning a whopping $10 billion within their fourth year of operations, and now are on a growth trajectory to reach $25 billion by 2021.
B2B buyers are spending more on their procurement budget on Amazon business. The reason behind Amazon’s startling success is stream-lined third-party sellers with unparalleled business insights.
Amazon B2B marketplace is currently present in five markets –UK, Germany, France, India, and Japan.