Amazon B2B is a growing marketplace on the e-commerce giant that you can take advantage of because of the lower competition. While most Amazon sellers focus on selling directly to customers, you can sell products to businesses. There are pros and cons to this method, as we’ll reveal in this article.
The growth in the Amazon B2B sector has hit over $10 billion in global annual sales, so it’s a massive part of the offering on the website. In this article, I’ll share how to get started and the best tips to succeed so you can beat the competition and dominate the marketplace.
What Is Amazon B2B?
Amazon B2B is the practice of selling on Amazon directly to other businesses. This usually means selling in bulk and at lower per-unit prices than you would to regular customers. However, by shifting large volumes of products, you can potentially make more profit overall.
Amazon Business is the section of the website that you should check out for selling directly to other businesses. It’s a dedicated subdomain that businesses will search for the products they need.
How To Start Selling Using Amazon B2B
Now let’s focus on some of the top things you’ll need to do when starting your Amazon B2B selling journey. These are just a few of the basic steps that you should consider to kick things off:
- Create a professional account: you’ll need to create an Amazon professional account so that you can start listing your products. The fee for this account type is around $40 per month and may change by the time you read this article.
- Source products: you’ll need to find a distributor to source your product from. Make sure that they can provide you with products in bulk with B2B pricing. Therefore, you can maintain a profit margin when selling to other businesses.
- Product listing: you’ll also need to create a product listing on Amazon to sell your products. The strategies used on Amazon B2B product listings are slightly different than regular ones. That’s because you’re trying to sell to a different target audience, and the small details of the product listing should reflect that.
Amazon B2B Strategies To Consider
Now let’s look at some of the top strategies you should implement in your business to increase the chances of success. This ensures you can win in highly competitive marketplaces that would have otherwise proven difficult to crack.
Limited Liability Company
While having an LLC (Limited Liability Company) is not a direct requirement with Amazon B2B, it greatly increases your chances of success. Here are some of the top benefits of LLCs for Amazon business owners:
- Increased chance of a bank loan.
- Improve money management – especially when dealing with business partners.
- Liability protection since the business will face legal problems if customers pursue legal action.
- Lower taxes depending on the state where you open the LLC.
These are just a few of the reasons why investing in an LLC is a great idea. To help you with business registration, consider the services available here at Business Anywhere.
Negotiate With Suppliers
To win at Amazon B2B you need to keep the per-unit price at a minimum. That’s because your customers expect low prices since they will sell those products at a margin.
To secure low prices with your suppliers, you need to increase the number of units you buy. Typically, the per-unit price drops the more you buy. Hence, the upfront investment for this business model is huge.
During negotiations with suppliers, you should share that you are a repeat buyer who will order a large volume of units. This may result in a significant per unit price drop compared to what business owners with the Amazon FBA model will receive.
Consider The Target Audience
You cannot use the same marketing strategy on your product listings as you would with the Amazon B2C model. That’s because Amazon B2B customers are more concerned about things like per unit price, delivery speed, availability throughout the year, packaging, and more.
Make sure that the product listing addresses the most important aspects of the concerns other business owners might have to increase your chances of getting a sale. Therefore, if you’re already selling these products using Amazon B2C, then don’t copy and paste the entire listing.
It’s a good idea to allow your Amazon B2B customers to buy samples so they can have a look at the quality of your products. You can do this by allowing customers to buy a single sample on the Amazon Business part of the website, or you can direct customers to the regular Amazon website to buy the goods.
Good Customer Service
Excellent customer service is a great way to stand out from other Amazon sellers. This includes answering any questions that you may receive for your product listings. Answer the questions in detail and quickly to push buyers along the sales funnel.
Furthermore, you can follow up post-purchase via email to ask if there is anything you can do to help. For instance, you can provide marketing materials for your customer to sell those products to their customers. This extra assistance may be what you need to stand out in your marketplace.
Amazon B2B – Is It Worth Starting?
To conclude, Amazon B2B is an excellent business model that has the potential to scale to new heights. Amazon B2B isn’t as popular as the regular website, but an increasing number of businesses are looking for products on the platform. After all, the Amazon website is easy to use and has an excellent brand reputation.
However, don’t forget to register your business as an LLC to increase your chances of success. Here at Business Anywhere, we provide a fast and low-cost business registration process for all types of companies.