Now that Amazon is practically a verb for online shopping and lightning-fast shipping, it’s time to discuss Amazon’s subsidiary, Amazon Business. The platform is geared toward business owners, organizations, and new ventures, and it offers features like multiple user accounts and bulk order discounts.
“Amazon Business combines the selection, convenience, and value you expect from Amazon with features that can help improve your operations,” the company boasts on its website. But what does that actually entail, and should you open an account to take advantage of it?
Here, we’ll discuss the advantages and disadvantages of Amazon Business and Amazon Business Prime, as well as how you can make the most of its features.
What exactly is Amazon Business?
Amazon Business is a version of Amazon that provides businesses of all sizes with discounts on millions of products.
It simplifies and reduces the cost of purchasing by combining Amazon’s familiar one-stop shopping experience with quantity discounts, price comparisons, approval workflows, and multi-user accounts. Pallet shipping is an optional extra.
How Amazon Business Works
Amazon Business, as the name implies, caters to businesses and serves customers in the United States, Canada, Japan, India, Germany, Spain, the United Kingdom, France, and Italy.
Amazon Business is ideal for businesses that require direct access to bulk items, restricted sellers, spending controls and monitoring across multiple users, and spending analytics.
How Does Amazon Business Handle Payments?
Individual or shared payment options can be added to an Amazon Business account by an administrator. Credit cards, debit cards, and Amazon’s corporate credit line, which is a business line of credit, are examples of shared payment methods.
Any authorized business account user may use a registered payment method to make purchases on your company’s behalf. While all of your authorized account users can use registered credit cards to make purchases, they will only be able to see the last four digits for security reasons.
The Amazon corporate credit line broadens your user and management options by enabling you to authorize multiple buyers on a single account, download order history reports, and pay by purchase order. It comes with simple statements and there is no annual fee.
Key Features of Amazon Business
Read on to learn how the administrative and supply-management features can help businesses, but keep in mind the costs.
#1. Greater accessibility and exclusive offers for businesses
Amazon Business works similarly to a regular storefront in that it provides customers with access to thousands of sellers, often at discounted prices.
Amazon Business, on the other hand, works with sellers who frequently limit orders or do not sell their products on regular Amazon at all in order to provide Amazon Business-certified customers.
For example, Amazon Business sellers can restrict healthcare, industrial, or lab essentials on the regular platform to make the products a “business-only offer.”
#2. Pricing in Business
When it comes to pricing, Amazon Business customers receive exclusive discounts as well as the opportunity to save money by doing the following:
- Deals: As with any deal on Amazon Prime or the Business Platform, the Business Platform offers daily deals on select items. Business Prime, like regular Prime, offers exclusive Prime prices.
- Rewards Program: Amazon Business, as a rewards program, offers progressive discounts on products based on the company’s order volume over the previous calendar year. Be aware that these offers are limited to specific items in limited quantities.
- Repeat Deliveries: You can save 5% on any regular monthly deliveries.
- Negotiation is still possible: Amazon Business, like many traditional business supply partnerships, allows for negotiation. If you have an existing relationship with the seller or fall into a specific customer niche (licensed hairdresser, for example), you can work directly with the seller to negotiate a price that is not listed on the Business storefront.
#3. Business Prime Advantages and Enrollment
Don’t be fooled by the fact that creating an Amazon Business account is free. A Business Prime membership is required to take advantage of major shipping discounts, premium analytical tools, and multi-member platforms.
Here are a few of Business Prime’s distinguishing analytical features:
- Multi-user accounts: Multiple people can access ordering and analytics, preventing one person from taking sole responsibility for multi-team orders. One of the most significant benefits of the Business Prime platform is the elimination of the guesswork and chaos that can accompany large and frequent orders.
- Spend Visibility: Amazon Business collects and presents data for you using KPI tools and data filters thanks to AWS’ cloud-based system.
- Guided Buying: This tool directs multiple users to the exact item you want them to purchase. To get started, select a policy type, a product seller, and possibly a buyer note.
- WorkDocs: WorkDocs is a secure workspace for collaboration and communication that is powered by Amazon.
Before you sign up, keep the following three pricing considerations in mind:
- Business Prime costs $69 per year if you sign up with the same credentials you use for your Amazon Prime account.
- For $179 per year, you can get access to Business Prime Essentials, which includes adding up to three members, free shipping, Guided Buying, Spend Visibility, and WorkDocs.
Business Prime does come with a free 30-day trial.
#4. Multi-User Access With Business Prime Is Not Free.
The multi-user platform, with an analytical and administrative focus, is perhaps Business Prime’s most significant benefit.
As previously stated, you can even assign different roles to users, such as administrators, buyers, and even finance users.
However, using this tool can be costly. Here are a few things to keep in mind:
- After the initial 30-day trial period, a Business Prime membership costs $139 per year, with additional fees for each additional member.
- Starting at $69 for one member and rising to $10,099 for an unlimited membership, you may have to consider whether the extra costs are worth any potential savings or convenience.
Why would you want to take advantage? Here are a few of the main reasons.
- Work-from-home supplies can be ordered by remote or hybrid workers.
- Recurring orders can be set up by office managers.
- Multi-brand/team organizations have complete control over the supplies they require.
#5. The Approval Workflow Promotes Responsible Spending
Providing access to multiple users can be both productive and chaotic. Amazon Business users can manage their organization’s purchases by:
- Establishing purchasing guidelines.
- Creating groups with varying purchasing privileges.
- Setting delivery schedules.
- Only if someone exceeds a certain threshold is the approval granted.
#6. Analytical Insights
After spending, particularly if it is inventory or business-related, you will most likely reconsider whether to reorder or rethink where your money goes.
Business analytics tools provide spending visibility beyond individual, pre-built, or custom spend reports, as well as access to multiple reports. While viewing your payment and order history on Amazon’s regular platform is nothing new, Amazon Business makes those records easy to compare for multiple or individual people through reconciliation reports.
#7. Payment Options Vary
Filing an expense report can be a completely different administrative nightmare, especially when multiple groups and individuals have purchasing power. Amazon Business cuts out the middleman and provides the following services:
- Purchase now and pay later
- Pay by invoice flexibility with up to 30-day payment terms
- Rewards possibilities with the Business American Express Card
#8. Exemption from Taxes
What you’ve probably been waiting for is an explanation of how tax exemption works with Amazon Business. It’s straightforward. Enroll in the Amazon Tax Exemption Program if your organization is eligible for tax-exempt purchasing so that your Amazon Business purchases are tax-exempt.
#9. Consolidated Shipping
Because Amazon Business is designed to allow customers to order in bulk, if your order qualifies as a large delivery that needs to be consolidated, it will be delivered on a pallet to a receiving dock or even to your door.
What are the Benefits of Amazon’s Business?
As earlier mentioned, an Amazon Business account allows businesses to simplify their purchasing processes. Exclusive benefits are also available to business owners that are not available to regular Amazon customers.
Here are some of the advantages of Amazon Business.
#1. Exclusive Price Cuts and Shipping
Amazon Business provides Amazon business users with special pricing and shipping options. These features may assist them in saving money on their purchases.
Benefits include discounted Amazon Business pricing on bulk purchases.
As an Amazon Business member, you can save money on millions of business-related items.
You can use quantity discounts to save money on business purchases, allowing you to spend it elsewhere. You can also use the Amazon Business account platform to compare prices from different sellers.
#2. Purchases Exempt from Tax
You can use the Amazon Tax Exemption Program to make tax-free purchases for registered businesses.
Amazon provides a tool to help you determine whether you are eligible for the Amazon Tax Exemption program. You can then use your tax-exempt status to make eligible Amazon and affiliate seller purchases.
#3. Ordering is Simple and Convenient
Amazon Business offers a user-friendly interface for businesses to efficiently place orders. Amazon Business allows businesses to create purchase orders and set up approval workflows. Shipping addresses and payment methods can also be managed in one place.
You can also save your favorite suppliers, making it easy to find them when reordering supplies.
#4. Amazon Business Credit Line
Credit lines provide significant advantages for businesses seeking a streamlined purchasing process. They allow you to purchase items on credit and pay them off later.
Credit lines allow you to order products ahead of time and schedule payments, which simplifies your accounting process.
#5. Amazon Analytics for Business
An Amazon Business account also provides detailed analytics and reporting tools. This information can assist businesses in tracking their purchasing activity and identifying areas where they can cut back if necessary.
Here is some information from your Amazon Business Account analytics dashboard.
- Total Spending Orders Average Order Size
- Total Number of Ordered Items
- Total Spend by Group Total Spend by Company Compliance Spend by Month Compliance Spend by Month
- You can download order history reports as an Amazon business member if you need reports for company compliance or to review your expenditures.
#6. Integration with QuickBooks
Amazon Business integrates with QuickBooks, a popular accounting and financial software. Many small and large businesses use it to manage their finances and accounting processes.
Businesses can automate their bookkeeping processes by connecting Amazon Business and QuickBooks. This saves time and effort spent on manual data entry.
What are the Drawbacks of Amazon Business?
It’s difficult to find a disadvantage if you’re a buyer on Amazon Business. The benefits are extremely valuable. However, the disadvantages of selling on Amazon Business include the following:
- Lack of control: While an Amazon Business account can help your company increase revenue, it also gives you less control over your brand. In general, your company must follow Amazon’s policies. Otherwise, you risk having your store removed completely.
- Intense competition: Amazon Business offers useful analytics to assist businesses in making the most of the platform. Other businesses, on the other hand, have the same tools and appeal to the same customer base. That means you’ll have to fight every sale tooth and nail. It also implies that success on Amazon Business is determined by chance as well as skill and experience.
- Minimal buyer communication: In general, anyone who purchases products from your store is first considered an Amazon customer. While this does not preclude you from communicating with customers, Amazon does not make buyer contact information readily available. As a result, there are fewer opportunities to build your brand through excellent customer service.
- Frequent fees: Becoming a business owner can be expensive. However, there are several membership plans available at various prices. More expensive tiers provide additional benefits, but less expensive tiers may benefit your bottom line more. Investigate each option and select the best one for your company.
- Profitability is not guaranteed: While Amazon Business tools can help you increase your revenue, it’s unclear how much you’ll actually benefit. Profitability is not guaranteed due to the monthly fees and the intense competition on the platform. Use the included tools for the best results.
How to Sign Up for Amazon Business and Customize Your Settings
If you’re convinced that Amazon Business is a worthwhile investment, here’s how to get started.
Go to the Amazon Business Page
To begin, go to the Amazon Business Website.
Enter the email address that will be used to access the account.
When you arrive at the landing page, you will be asked to enter your email address. Make sure it’s an email address provided by your employer or one that can be used with the Business platform. You must also enter your name and create a password.
If you attempt to join Amazon Business with an email address that is already associated with a regular Amazon account, you will be prompted to upgrade that account to an Amazon Business account. If you decline this offer, you must sign up using a different email address.
Check the legitimacy of your company.
At this point, Amazon will request business information from you, such as the address on your official documents.
Provide your credit card or tax information, such as a business or tax ID, to get verified faster.
Wait for Amazon to validate your company.
Amazon will verify your business within 24 hours of registering. You should be good to go from there.
Control account settings
Select “Account settings” from the dropdown menu once you’ve signed into your business account. From here, you’ll notice an additional “business settings” option where you can customize many of the key features discussed above.
If you want a detailed report on shipping, product, and seller information, make sure to select “Business analytics” instead of “Orders.”
Coordinate multiple tasks in groups
Go to the “people” page in your Amazon Business Prime interface to manage how many people have access and how much control they have.
- To begin, navigate to “Business Settings” and select “People.”
- Change a user’s role, move a user to a different group, or create a custom policy or user using the Actions dropdown menu (have to get approval before purchasing, for example).
- Select “People” and then “Members” to add a user.
- Select the person’s username (must be registered), followed by “Add to another group.”
- From there, you can assign the appropriate roles in that group and then click “Add to group” to complete the transaction. Of course, you can always go through the process again to make more changes.
Look around and shop
After you’ve finalized your settings, you’re free to browse and shop. You can shop by seller credentials, just like on Amazon’s regular website, which means you can shop and support Black, women-owned, and local businesses directly through Amazon. After you’ve added your items to your cart, the checkout process is identical to Amazon’s standard procedure.
Check that the address is correct and that payment information is entered in the most convenient manner for your company.
What Exactly is Amazon Business Prime?
Amazon Business Prime offers additional benefits to Amazon Business subscribers, such as free delivery, discounts, and member-only offers. Here are a few of the benefits of Amazon Business Prime:
- Spending reports: Amazon Business Prime includes AWS QuickSight-powered spending reports. Spend visibility generates graphical reports to assist you in managing your company’s Amazon-related expenses.
- Employee-guided purchasing is available to Business Prime members: Guided buying allows account administrators to specify preferred suppliers and products, as well as limit employee ordering capabilities.
- Payment Terms: Payment terms can be extended to 45 or 60 days for Business Prime members using Amazon’s Pay By Invoice service, depending on their plan.
- Shipping and delivery benefits: For Business Prime products, Amazon provides free two-day shipping in the continental United States, and same-day delivery is available in eligible ZIP codes and select cities. Most days of the year, same-day delivery is available seven days a week, with limited availability on certain holidays and high-volume shopping days, such as Black Friday and Prime Day. To qualify for same-day shipping, your order must be at least $25 and include the free same-day icon.
- Amazon Day: Amazon Day is a free service that allows Business Prime customers to choose a single day each week to receive all of their weekly items, preventing excessive package deliveries. Order eligible items up to two days before your business’s chosen Amazon Day.
What is the price of Amazon Business Prime?
Amazon Business Prime offers several membership plans to accommodate a wide range of users:
- Duo: The Duo plan costs $69 per year and allows for one user. It excludes access to spending visibility, guided purchasing, and extended terms for Amazon’s Pay By Invoice service.
- The Essentials plan costs $179 per year and allows for up to three users. It provides you with spending visibility, guided purchasing, and extended terms for Pay By Invoice.
- Small: The small plan costs $499 per year and allows for up to ten users.
- The medium plan costs $1,299 per year and supports up to 100 users.
- Enterprise: The Enterprise plan costs $10,099 per year and supports up to 100 users. It also provides you with optimal deployment, which means that Amazon Business Professional Services fine-tunes the account to optimize visibility and policy settings during a full-scale implementation process.
Is Amazon Business Prime a good investment?
Many businesses benefit from an Amazon Business Prime subscription, but it is not always the most cost-effective option. The value of Amazon’s free shipping on selected items is heavily influenced by local prices and availability, bulk prices for business shoppers, and order scheduling.
For example, if you own a restaurant and order from Restaurant Depot a few times a year, you should compare prices; you might already be getting the best deal. On the other hand, if you live in a remote area with little in-store shopping or where delivery costs are frequently prohibitively expensive, Prime may be worth it.
Conclusively
Whether you’re buying or selling on Amazon Business, you’ll gain access to a larger market. You can get your supplies from a variety of stores and sell your products to the same people. However, while there is much to be gained from using the platform, making the most of it requires careful research and consideration.
If you’re selling, make sure you’re prepared to fully utilize the Amazon Business tools provided, or you risk losing sales to your competitors. When purchasing, compare prices between your usual suppliers and the Amazon Business market to ensure you’re getting the best deal.
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