Amazon started as online book store and has grown to be the worlds largest online retailer.
Amazon aggressively promote Amazon Business with pop up
Amazon are aggressively promoting Amazon Business on their home page with an interstitial pop up. This isn’t Amazon’s normal style and the fact that it’s such an intrusive form of advertising demonstrates the importance they are placing on attracting business buyers and why you should be considering signing up if you haven’t already done so.
Interstitial pop ups are so intrusive that they attract a Google penalty on most sites. Amazon won’t be particularly worried about this as anyone who types in the Amazon URL will be starting their search on Amazon. As it blacks out the entire page there is no option but to read the advert or at least notice it as you dismiss it before you continue shopping. When you see Amazon taking such aggressive marketing there is no doubt at all that they see massive growth potential and to take advantage it’s time to sign up.
“Amazon Business, Do you shop on Amazon for work?” the pop up reads, with the suggestion to sign up for a free Amazon Business account to access features including Business Only Pricing, Downloadable VAT Invoices and Pay by Invoice.
[Editors note] Amazon really need to check their code – they’ve forgotten to close an HTML list tag so the advert displays /li> as can be seen in the image above. Red faces somewhere!
Why merchants should consider signing up for Amazon Business
Amazon Business not only offers free facilities to businesses who wish to buy on Amazon, but it is also free to Amazon merchants who want to make their products available to Amazon business customers.
Amazon have told us that half of all units sold to businesses are from third party merchants, with more than 30,000 sellers in the UK having accessed the Amazon Business Seller feature set.
Amazon also revealed to Tamebay that sellers who have adopted the VAT Calculation Service have on average increased their B2B sales by more than 50% within the first month – it’s the value of registering (for free) as a Business seller and getting enhanced visibility with the Amazon Business badge displayed against your products. Plus you also get a better chance of winning the Buy Box as your offers will be displayed net of VAT.
What type of products sell on Amazon Business
The products you’d expect to perform well
Amazon Business offers more than one hundred million products in a wide range of categories and as you might expect these include the types of product you’d typically associate corporate customers purchasing:
- Laptops, office supplies and storage solutions, through to office furniture and commercial grade printers
- Industrial safety and contractor grade power tools through to thermal imaging cameras
- Janitorial supplies and cleaning products through to industrial grade high pressure washers
- More than 50,000 types of lab supplies, including microscopes, test tubes and high-speed centrifuges
The type of products you may be surprised to perform well
What you might not expect is the huge range of other products that are being sold on Amazon Business, some of the best performing categories in the top 20 include
- Health & Personal Care
- Lawn and Garden
- and Home Entertainment
Are my products suitable?
It’s important to remember that whilst businesses will obviously buy office supplies and the like, they are equally likely to make purchases as corporate gifts, kitchen appliances for the office canteen, groceries for meetings, incentives for staff and businesses such as media companies could buy just about anything perhaps for use as film props. Don’t think that because you don’t sell office supplies that your items aren’t suitable to sell on Amazon Business because there’s a high chance they will.
I looked at the Amazon business site a few days ago and the following day I received an email from Amazon asking me to sign up to Amazon business which is another way Amazon is trying to promote its b2b service.
The b2b market is X4 larger than the b2c market and is more profitable because businesses tend to order multiple items when they order, whereas the consumer orders 1 or 2 products at a time. It costs the same to deliver 5 laptop computers to business as it does to deliver 1 laptop to a consumer as it takes 1 delivery driver. Business purchasers tend to purchase multiple items when they order. Which means Amazon business is more profitable than the b2c Amazon site being the overall cost reductions in delivery of the last mile.
Amazon knows it is onto a winner with its b2b Amazon business and recently Amazon made a statement that it’s b2b is now a $10 billion business which has been achieved in 3 years and shows massive growth.
Amazon business b2b is incredible as both buyers and sellers open an Amazon business account, they pay Amazon a %15 commission and they also advertise on the b2b site where Amazon earns revenue from the advertising, Amazon also earns revenue from its FBA and delivery and Amazon also earns revenue from business prime subscription service.
What Amazon should do is have 1 minute of pre roll advertising on its prime video and promote its own services such as Amazon business with that Amazon would gain a lot more customers.
I hate pop up ads with a vengenance. Tamebay take note.
It’s a shame they tie this in with having to manage your VAT through their service. I’ve heard a few horror stories (whether true or not, I don’t know), but more importantly when I responded to one of their relentless tide of emails pushing it, wouldn’t confirm that they would accept liabilility in the event of any errors in VAT calculations being down to them or, if our account was suspended for any reason, provide access to the reports to enable us to meet HMRC’s document retention policies.
The other aspect is that they provide tools to discount sales for B2B customers, but don’t allow us to add a small surcharge to cover the extended credit they force us to offer. I don’t like the idea of hitting private consumers with a price increase just to fund B2B credit !