Home Business NewsBusinessBusiness Growth Thousands of SMEs are tapping into the multi-billion-pound B2B ecommerce opportunity with Amazon Business

Thousands of SMEs are tapping into the multi-billion-pound B2B ecommerce opportunity with Amazon Business

by LLB Reporter
14th Jul 21 10:33 am

Amazon Business is a global procurement solution used by more than five million business customers. In the UK, Amazon Business enables tens of thousands of independent selling partners – most of whom are small and medium-sized enterprises (SMEs) – to grow their B2B ecommerce footprint. They range from small office supply resellers and consumer electronics equipment manufacturers, to family-owned businesses selling appliances from printers for the home and office to vacuum cleaners.

These SMEs can reach business customers of all sizes, including enterprise customers and public sector organisations, which are two of Amazon Business’ fastest-growing customer segments. As a result:

  • UK-based SMEs selling on Amazon Business have generated more than 300 million GBP in 2020 by selling to business customers including multinational enterprises, universities, energy companies and healthcare organisations;
  • Sales generated by UK-based SMEs grew at an average of more than 50% every year since Amazon Business started in the UK in 2017;
  • Enterprise customers in the UK have increased their spending by more than 50% year-over-year with SMEs;
  • SMEs in the UK have sold millions of items across a variety of categories, more than two million office supplies and computers, and hundreds of thousands of health and sanitation products;
  • UK based SMEs are facilitating Amazon’s Climate Pledge Friendly store, and are offering a variety of more sustainable products from keyboards to paper towels, printer papers, HDMI cables, laptops and many more.

“We are helping SMEs to reach business customers of all sizes, from all sectors – including automotive manufacturers, energy companies, universities, and healthcare organisations – to overcome challenges in the B2B buying process, which is traditionally complex”, said Dr. Patrick Reuther, Seller Services Director for Amazon Business Europe. “Sellers can leverage tailored B2B features such as Amazon Business’ quantity discounts, which gives SMEs the opportunity to sell higher value orders to large enterprises.”

Amazon Business in the UK serves more than 50% of FTSE 100 companies, all of the 15 largest universities, 85% of the biggest cities, and over a third of the 15 largest hospitals across the UK, as well many other public sector organisations. Globally, Amazon Business has reached over $25 billion in worldwide annualised sales, more than half of which are from independent selling partners.

Here’s what a few SMEs had to say:

  • “With other sites you have to put in a lot of work to make your products visible but Amazon Business enables you to get them immediately in front of your customers, as long as you have a good product and a competitive price. This is extremely useful if you are trying to launch a new product line within your brand as it allows you to quickly and easily get that new product in front of the people that matter most.” – Mike Mercieca, Head of Online sales, South West Cleaning Equipment Ltd
  • “We joined Amazon Business last year and it has helped us expand our client base and connected us to many business customers who were out of our radar till we joined the platform. We have reached our B2B sales margin for 6 months in a row and are planning for higher gross sales this month. All in all, we have had positive experiences and would recommend new companies to try Amazon Business and reap the benefits of being connected to millions of users worldwide.” – Sanket Gautem, Web Design Consultant, Advent Data Solutions Ltd
  • “We were committed to helping our customers make the right decisions about technology in their business, so we started selling our first environmentally friendly product on Amazon Business. We wanted to set an example of how it’s possible to combine technology and sustainability and the response we generated so far exceeded our expectations.” – Rob Judd, Director of Sales, Portus Digital.

Amazon spends billions of dollars every year to help selling partners succeed around the globe. By selling through Amazon Business they can utilise tailored B2B features such as invoicing solutions, pricing features, or tools to drive analytics to expand their selection.

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