By Bennett Heyn
Is it really possible to save millions on company purchases with Amazon Business? If you’re having trouble with your current vendors then Amazon Business will help you save money while getting your supplies quickly and efficiently. However, there are a few downsides to Amazon Business mentioned below.
Anyone who makes purchases for work (eg. procurement specialists, office administration, IT departments, etc.) can create a free account for their business. Amazon Business is personalized and tailored for you and your business needs.
What is Amazon Business?
- Amazon Business is, "providing easy access to hundreds of millions of products – everything from IT and lab equipment to education and foodservice supplies – as well as business-only selection and pricing."
Amazon Business customers can also count on:
- free two-day shipping on" tens of millions" of eligible items
- multi-user business accounts
- approval workflow
- payment solutions
- tax exemptions
- business-ready purchasing analytics
- dedicated customer support "and much more.
Read also: What is Amazon Prime? - CNET
Is Amazon Business Worth It?
It may or may not be worth it depending on your business goals. There is a free plan for Amazon Business and you have the following capabilities:
- Manage all the users on your Amazon Business account
- Save preferred suppliers for easy purchasing access
- Establish order-approval procedures and spending caps
- Make a company credit card accessible to certain account users
- Opt-in to Amazon Corporate Credit
- Integrate purchasing systems so your customers have a punchout option
- Set certain qualifying purchases for consolidated delivery on a pallet to your doorstep or dock
Plus, Amazon Business got a 4/5 stars with 70+ ratings! I think it's worth trying the free Amazon Business version & possibly upgrading to Amazon Business Prime. That brings me to my next point, "Is there a difference between Amazon Business & Amazon Business Prime?"
The main reason to become an Amazon Business member is because of how much money you can save by shopping & selling on Amazon Business. Similarly, Amazon Business gives you the tools to help manage your business easier. In my opinion, signing up for an Amazon Business Account has been worth signing up for. I use Amazon Business and it has made my life simpler. My recommendation is to sign up for an Amazon Business account and try it out for a month. That way, you can see if it is helpful for you & your business. If it's not valuable for you, it is super easy to cancel.
Difference Between Amazon Business & Amazon Business Prime
Amazon Business is a bundle of features Amazon offers exclusively for businesses of all sizes. Signing up for and using the service is free. Amazon will verify that you do indeed have a business, so you’ll have a short waiting period before you’re up and running.
After you’re verified as an Amazon Business customer, you become eligible to purchase the Business Prime plan, if you wish. Business Prime enhances Amazon Business, giving you more flexibility on delivery and payment terms.
Amazon Business Account Benefits
Here are some of the Benefits that come with selling on Amazon Business:
- Customized browsing and searching based on your business type: Amazon uses an AI to help customize your shopping experience to find products that match your business type.
- Amazon Business Card: Choose to earn rewards or take more time to pay interest-free on US purchases as Amazon Business.
- Quick Business Prime Shipping: Free Same-Day, One-Day, and Two-Day Shipping on eligible items for your business.
- Exclusive Business pricing: Select prices and quantity discounts on eligible items for your business.
- Business-only discounts: Quantity discounts above what you normally find on Amazon
- Exclusive Items Not Offered on Amazon: Business-only item, including hard-to-find items like traffic signs, industrial deep fryers, antibodies, 55-gallon steel drums, dent pullers, and more.
- Single or Multiple Business accounts: Create a single or multi-user business account, invite additional users to join, and define groups of users to share payment methods and shipping addresses.
- Purchase approval workflows: Create approval workflows to enable better spending controls.
- Purchasing system integration: Integrations with third-party procurement solutions.
- Purchasing analytics and reports: This gives you the ability to look at spending activity and total costs on purchases at the individual, purchasing group, or type of spend level.
- Price comparison options: The interface will show you multiple prices and brands in one spot for a certain product. This helps you to avoid wasting time by clicking around to find the best deal on a brand you love.
- Tax exempt purchases: Make tax-exempt purchases and manage tax exemption permissions across an organization.
- Order tracking: Add purchase order or reference numbers to purchases to assist with reporting and account reconciliation.
- Amazon corporate credit line: Place orders and finance purchases using a credit line.
- Amazon Business customer support: Amazon customer service dedicated to registered business shoppers.
Downsides to Amazon Business
Here are some of the Cons that come with selling on Amazon Business:
- More Fees Which Reduce Product Margin. With Amazon Business, you may pay 6 to 15 percent in fees, with a few exceptions for items that are typically not sold as business products. This does not include fees for Fulfillment by Amazon.
- Product Differentiation is Harder. By selling on Amazon, you can't differentiate yourself as easily. Similarly, you can't interact with your target market and end consumers and explain why they should buy from you. On Amazon Business, buyers can easily search for the lowest cost vendors and purchase from them.
- Buyers Become Amazon's Customers, Not Yours. Amazon limits how sellers can communicate with customers. As a seller, you can't easily communicate with your customers. Similarly, you don't have as much freedom to include packaging inserts and other marketing materials. It will become more difficult for consumers to understand your brand because Amazon has more control of the buyer-seller relationship.
- Product Data and Technical Information. It can be difficult to effectively upload product data into Amazon Business. It becomes a very technical and tedious task which you may have to outsource to an IT company. Each product category has its own rules. The way you set up your product data will affect how well it sells and appears on Amazon.
Although there are a few downsides to Amazon Business, it still may be worth it for your business to set up an Amazon Business account. Unlike Amazon Prime, it is free to sign up for an Amazon Business account! I recommend signing up and evaluating if it works well for your business.
What Is The Amazon Business Credit Card?
Amazon Business launched a credit card with American Express! Here are some benefits of an Amazon Business Credit Card:
- Earn up to $200 in savings.
- Get a $100 Amazon.com Gift Card† upon approval.
- Plus, earn an additional $100 statement credit after you spend $3,000 on the Card in the 2% Back and 1% Back categories in your first 3 months.†
I suggest reading through the terms, conditions, & disclosures to get a better idea of the American Express/Amazon Business credit card's interest rates, APR, fees & more.
How To Apply For An Amazon Business Credit Card
All Amazon customers seeking a business purpose Card are welcome to apply—not just Amazon Business customers. The Card benefits are designed for the needs of business owners, and Card Members who also have an Amazon Business account can take advantage of the enhanced data views available with the Card. If you are approved for the Amazon Business American Express Card, you will have the opportunity to take advantage of expedited registration for a new Amazon Business account (if you do not already have one). Here is a link to take you to the Amazon Business Credit Card Application Page.
The reviews for the Amazon Business Credit Card are pretty positive! I recommend reading through the comments before applying. A little additional information never hurts.
Amazon Business Account Setup
(This is how to create an Amazon Business Account)
Before you can go shopping or selling on Amazon Business, you need to register for an account, which includes providing some information about your business.
Registering for an account is very simple. Click on the picture below to create a free account!
Next, you enter information such as your name, work email, and create a password. Lastly, you will be asked to enter information such as your full name, business name, business phone number and so on. Creating a free account will take you less than 10 minutes!
Read also: Pros and Cons of Selling on Amazon - Forbes
You can then manage your account information, sign up multiple users, and organize people into groups (like by different departments) to keep them separated. You can even designate different payment methods and spending limits for each group or user.
Amazon Business also allows you to set up approval workflows if you'd like to be notified of purchases or have a supervisor approve any or all purchases through the platform. Also, if you're a non-profit or any other business that gets tax-exempt status on purchases, there are options for that too. Anyway, once you've set all that up, it's time to shop.
If you think an Amazon Business account is for you, sign up today.
To sum up this article, an Amazon Business Account is a multi faceted selling/buying platform for your business needs. With your Amazon Business Account, you can create a single or multi-user business account, invite additional users to join, and define groups of users to share payment methods and shipping addresses. The Amazon Business Account also includes business-tailored features, such as approval workflow, payment solutions, tax exemptions, dedicated customer support, and more.