Originally, Amazon was considered a B2C, but the company has developed a business-to-business side in recent years, making it a B2B and B2C.
B2B e-commerce was estimated to reach over $1 trillion in the US in 2018, while US retail e-commerce sales only amounted to $524 billion last year.
And with B2B sales estimated to be worth $7.37 trillion in the US in 2018, there’s a large opportunity for Amazon Business to pick up more sales as the market shifts more toward e-commerce, which could set it up to meet RBC’s projections.
Amazon has facilitated more efficient C2C communication thanks to big intermediaries plugged into the internet.
This technology is also evident in online marketplaces, including eBay, which sells items online, and Amazon, which offers its online marketplace.
In this blog, we’ll talk about Amazon’s sales processes and the features customers acquire.
An E-commerce Giant
Amazon’s B2B and B2C services do not include auction-style sales like its competitor, eBay. Instead, all prices are fixed prices.
Amazon also competes with Google, a company that has entered the business-to-business realm by connecting businesses with relevant suppliers.
It offers direct sales and products for sale.
However, while Google might provide services — such as email — that Amazon does not, Amazon remains an e-commerce giant.
Amazon is best known for its B2C capacities. Businesses of almost every kind can sell products on Amazon, from shoes and furniture to tech gadgets and food.
Amazon Prime is a popular feature the company offers, which offers free shipping and other benefits for a low annual fee.
Business-To-Consumer (B2C)
Having smaller batches of products, or selling items with a limited shelf-life, B2C might be the answer. These businesses rely on a higher inventory turnover ratio.
Individual items have higher profits, but it takes more work to sell as many products.
The business-to-consumer side of Amazon overlaps somewhat with the B2B side.
For instance, when Amazon helps a seller create a page on which they can list their products, that’s serving consumers, too, although not directly.
However, Amazon also offers its own products, both new and used, which consumers can purchase directly from Amazon.
Now that Amazon has entered the digital media realm with its exclusive Kindle e-reader and selection of e-books, Amazon serves consumers in this way, too.
B2C companies offer merchandise through the internet and sell products to customers. These companies include Amazon, Meta (formerly Facebook), and Walmart.
What Are B2C Customers?
B2C consumers are individuals or a small group. They can easily communicate their wants and needs and are much easier to build a relationship with as a business.
B2B consumers often involve multiple people and teams in their purchasing decisions. Rapport can still be built, but it will take longer and requires more investment by all parties.
B2B vs. B2C
The main difference between B2B and B2C businesses is their intended customers. B2B sells to businesses that resell the products, while B2C sells directly to the end consumer.
However, they also tend to operate differently and offer unique benefits.
B2B products do not derive any emotional satisfaction from the product they buy. For corporations, products that they purchase, serve a particular purpose.
A product is supposed to perform a specific task at the lowest possible price. The money left over adds to the bottom line of the company.
As a result, the marketing and branding in B2B companies are very different than the marketing and branding in B2C portals.
B2C portals tend to concentrate more on the emotional aspects, whereas B2B portals focus more on the rational aspects.
A company or marketer’s level of expertise in B2B or B2C depends on several factors. It depends on whether or not a company is reaching businesses or consumers.
A company targeting other businesses has a different marketing and sales approach than targeting customers.
Two, it depends on the professional background of marketing team members.
An employee who spent 20 years in B2B sales has different skills than someone with 10 years of B2C marketing campaign experience.
B2B Side of Amazon
Amazon’s made several enhancements to its B2B offering to make it more attractive to firms.
It has added perks to its Business Prime subscription, which has tiers that cost from $179 to $10,099 a year, like faster shipping and extended payment terms.
It’s also piloting a new smart shelf that makes replenishment orders for businesses when they’re running low on specific products.
As the e-tailer introduces more offerings and technological innovations for businesses, its platform may be able to bring in more firms.
What Is Consumer-To-Consumer (C2C)?
Consumers-to-Consumer (C2C) consists of large companies like Amazon and Alibaba, and their brick-and-mortar business sites.
Buying services via the internet is facilitated by an intermediary, which receives a commission when consumers buy from him.
Companies like eBay, Amazon Marketplace, and Mercari are examples of C2C eCommerce.
Marketing that focuses on selling goods to consumers (e.g. In contrast, companies such as Alibaba can be more difficult to locate.
A marketplace such as LinkedIn allows businesses to exchange goods with other businesses such as sales sites. This kind of marketing refers to a business-to-business model.
Amazon Prime Service
Amazon Business
All businesses need good credit, and this is something that Amazon Business has put at the forefront of benefits for both you, the seller, and your business customers.
If you want to widen your market and stay ahead of the competition, joining Amazon Business makes sense.
Amazon Business was launched in 2017 in the UK, two years later than in the US. It’s only just beginning to reach the awareness of many businesses in the UK, but it’s growing fast.
In early 2020 this arm of Amazon was cited as the fastest expanding part of the brand.
So, although Amazon Business is already established, there’s still room for growth, and joining now means you will be ahead of the curve.
Amazon Business offers business customers a B2B marketplace filled with pricing, features, and convenience; it has been designed to allow large, medium, and small businesses to easily access the same features at affordable prices.
Amazon Business is a B2B version of Amazon’s consumer arm. But instead of a business selling to the public, it’s geared towards businesses selling to other businesses.
Think of it as the standard Amazon website but a business-friendly version.
The company has invested heavily in European teams to support your business growth.
One of the friendly features of this platform is that a business can purchase items from you in bulk, or in small amounts, and obtain 30 days’ credit.
Businesses that use this program can create listings only for businesses, only visible to business buyers. Businesses will receive discounted business prices regardless of the quantity purchased.
These tiered quantity discounts are only available for Amazon Business customers.
For businesses, finding attractive pricing is as essential as finding the right product, and customers have many suppliers from which to choose.
Business prices and quantity discounts can help capture customers’ attention, gain their trust, and earn their business.
However, you, as the seller, are paid immediately. Buyers don’t need to set up an account with you before they buy.
As long as your potential customers have an Amazon Business account, they can purchase your goods immediately.
Keeping track of sales has been simplified too, both for you and your customer.
Each business customer can assign ‘users’ who are allowed to access the account and purchase supplies on Amazon Business on behalf of their employers (i.e., your customer).
Instead of having multiple people making multiple purchases to keep track of, it’s all simplified into one place.
Subscription Fees For Business Customers
Sellers must have a professional selling plan to participate in the Amazon Business Seller Program, and the associated monthly subscription fee and other selling fees apply.
For a limited time, sellers participating in the Amazon Business Seller program pay no additional monthly program fee to participate.
The fulfillment by Amazon fee schedule applies to business orders fulfilled by Amazon.
Business Pricing
The Amazon Business Seller program offers two types of discounts:
Business Price: A discounted price available to Amazon Business Seller program customers regardless of the quantity purchased.
Quantity Discount: Tiered discounts are available to Amazon Business Seller program customers for higher volume purchases.
Seller Credentials
As a seller, you can also add credentials such as ISO 9001 certified, small business, women, minority, and veteran-owned business to your seller profile, displayed to business customers.
Referral Fees
These are fees Amazon charges for referring customers. Referral fees on orders from Amazon Business customers vary by product category.
Who Can Have An Amazon Business Account?
Businesses, institutions, enterprises, or other organizations that have a location within the United States and have been assigned a TIN (tax identification number) are eligible to apply for a business account.
Amazon Business is also available to customers in U.S. Territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, Virgin Islands) and APO/FPO addresses.
Setting Up Your Account And Business Supplies
First, register your business with a selling plan. The two options are “Individual” and “Professional.”
Keep some basic information handy (e.g., bank account numbers and routing numbers). Understand the different types of fees that you might get charged.
Understand the Seller Central managing software that Amazon uses. This is important since most of the listing and product changes will be done there.
There is also an app to make things a little easier. Once you better understand the Amazon platform, you can now list your products.
The business then gets access to terms such as Net30, which gives them longer to pay their Invoices (30 days after the bill date in the case of Net30).
The package of multiple benefits, and attractive terms, means that everyday traders are joining Amazon Business to offer all kinds of business supplies.
Amazon's Tax Exemption Program
If your business participates in the Amazon Tax Collection Services, your business needs to honor the customers’ tax exemption through the Amazon Tax Exemption Program.
Every business order package must include a tracking number, packing slip, and purchase order number.
After your account is verified, you can manage your business account, and add others from your organization to your business.
Amazon has extended the tax exemption program to sellers. You can provide tax exemption for qualified purchases with just a button.
Business Product Identifiers
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