Amazon announced Tuesday that Amazon Business, a new marketplace site where shoppers can choose from hundreds of millions of products including industrial, janitorial, construction and office supplies, is finally open for business after three years of testing.
Prentis Wilson, vice president for Amazon Industrial and Scientific Supplies and Amazon Supply, told the Wall Street Journal that the site offers exclusive products and better prices for customers. The company decided to give up Amazon Supply to redirect its resources to the new site.
Amazon's latest move is a smart decision because Forrester Research recently released a report that business-to-business online sales in the U.S. could reach $1 trillion by 2020. Another study said that 68 percent of business-to-business buyers are purchasing their products online, according to CNET.
So how is Amazon Business different from Amazon.com? While the feel and experience are almost the same, the new site is exclusive to business owners. Users can sign up for either a single person account and then add people later or a multi-person account to register the entire team or company members. Businesses are required to provide a legal name, address, and TIN. The site explained that business accounts can receive free 2-day shipping for orders over $49, as well as customized order tracking.
Analysts are positive that Amazon Business will attract business shoppers and sellers.
"Many B2B sellers are interested in launching their own commerce sites because of the many benefits they provide," Jason Daigler, research director for digital commerce at Gartner, told Forbes. "Amazon Business will be a viable service or supplementary offering for many of these sellers."
Amazon Business is currently available for U.S. customers only, but Wilson said Amazon plans to expand it to other countries at some time in the future.
