Amazon looks to be continuing its dominance of the eCommerce market as today it announced the launch of a new business to business (B2B) eCommerce platform called Amazon Business. On Amazon Business, businesses will be able to browse and buy commercial items, covering everything from office essentials like stationery, to large, heavy duty commercial equipment.
This new marketplace is designed to replace Amazon’s previous business marketplace venture, Amazon Supply, and succeed Amazon’s other commercial marketplace, which was located in its Business, Industrial & Scientific section. However, whilst Amazon Business is designed to take over from these earlier versions of their B2B marketplaces, the entire eCommerce experience, from browsing to delivery, has been redefined, and Amazon hope that it will take a new direction in fostering B2B relationships on the website.
In order to gain access to Amazon Business, buyers will need to register their company and pass the vetting process, which aims to root out any individuals looking to take advantage of commercial discounts. Registration is free, and businesses will also receive free two day shipping with any order over $49. Shipping charges vary above that total. Amazon Business differs from its predecessors in that it include items from Amazon itself, as well as third party marketplace sellers.
In doing so, Amazon hopes to draw a host of new business to business sellers to the site, whilst at the same time improving and expanding its own product ranges and delivery options. However, like sellers on the normal marketplace, third party sellers on the Amazon Business marketplace will be charged commission on their sales. For office products, Amazon will charge 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. For other products, it will charge 8% up to $1,000, and 6% for orders above $1,000.
For now, Amazon Business will be available in America only, but they have said that they hope to expand it to UK based Amazon sellers over the next year. You can read the Amazon Business press release in full at the following link: http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2040634