What is Amazon Business, and how does it work?
We love selling on Amazon Business for multiple reasons, the most important of which is the ability to upload important documents to your listings, and to offer quantity discounts and pricing to business buyers, such as small boutiques or various kinds of sports teams, church groups, school groups, or other kinds of charitable organizations.
If you want to target active Amazon shoppers for bulk orders, Amazon Business is definitely what you’re looking for. Everyone likes consistent bulk orders; you love them, and Amazon does too. Those who target and grow their business metrics on Amazon will be more likely to continue building their online business, and Amazon likes serious business people like that. There are a lot of opportunities on Amazon Business, and here we’ve laid out some of our favorite key features of the program.
Note: If you’re interested in Amazon Business as a Business Buyer or Procurement Manager, I suggest this blog on that topic by Jennifer Post at Business News Daily.
You can create a Business profile
According to Amazon: “Your profile page provides basic information to business customers about your business. Display additional information such as enhanced logo, year established, and business type. Business customers see this information when they click your seller name in the Buy Box, in the Ships from and Sold by line on a product detail page, or on the product’s More Buying Choices and Offer Listings pages.”
Credentials and Certifications
You can upload credentials and certifications. See for example, this comment on the Amazon Business Seller help page: “Amazon supports diversity credentials (e.g. Women Owned) and quality certifications (e.g. ISO 9001) that you can display to Business customers on your Business Profile, Product Detail, and Offers Listing pages.”
Speaking as someone who used to do buying, certain percentages of budgets are often set aside for these “diversity buys” and if you can qualify for one of these badges, you should certainly go for it! Also, some boutiques only want to order and buy from companies with basic credentials, particularly for topicals and food items. So again, if you are in possession of these credentials, tell the world!
Let’s dig deeper into certifications, as there are a variety of types of certificates you can achieve. The first type is diversity credentials. These are:
- Economically Disadvantaged Women-Owned Small Business
- LGBT Business Enterprise
- Minority-Owned Business
- Registered Small Business
- SBA-Certified 8(a) Firm
- SBA-Certified HUB Zone Firm
- SBA-Certified Small Disadvantaged Business
- Service Disabled Veteran-Owned Small Business
- Veteran-Owned Small Business
- Women-Owned Business Enterprise
- Women-Owned Small Business
The second type of certifications are Quality Certifications. This include the below:
- AS9100C – Quality Management Systems – Aviation, Space, and Defense
- AS9120A – Quality Management Systems – Aviation, Space, and Defense – Stockist Distributors
- ISO 13485:2003 – Medical Devices Standards
- ISO 14001:2004 – Environmental Management Systems – Requirements
- ISO 22000:2005 – Food Quality Standards – Requirements (HACCP)
- ISO 9001:2008 – Quality Management Systems – Requirements
- ISO/TS 16949:2009 – Quality Management Systems – Automotive
Business Seller Badge
According to Amazon: “The Business Seller badge is granted to sellers that meet the high standards of Amazon Business. The badge is displayed next to your offers on product detail pages, your seller profile page, and other Amazon webpages. It is also available as a search refinement for business customers.”
If you can find ANY way to differentiate yourself from the two million plus other sellers in the marketplace, do it! Business customers are able to filter out sellers without this badge, or can use the badge to decide between two similar offers.
You must meet these performance metrics to earn a Business Seller badge:
- A Professional selling plan
- Minimum of 1 B2B order in the last 90 days
- Low Order Defect Rate on B2B orders (less than 0.5%)
- Low pre-fulfillment cancellation rate on B2B orders (less than 1%)
- Low late shipment rate on B2B orders (less than 2%)
- Must be enrolled in Amazon Tax Exemption Program (ATEP), if collecting tax in at least one region
- Include a packing slip with every B2B order package
- Include purchase order number with every B2B order package when provided by the customer
- Valid tracking number on B2B order shipments (valid tracking rate greater than 97.5%)
- No product authenticity complaints in the last 180 days
- No product safety complaints in the last 180 days
- Provide required profile information (about, location, year established, and number of employees)
A note regarding the product authenticity and safety complaints: it appears that if you appeal and are reinstated, these will not affect your metrics. If you’re struggling with this, we can help guide you, or you can download my Listing Reinstatement guide for more information on how to handle such a situation yourself.
Business Pricing and Quantity Discounts
This is our favorite! According to Amazon: “Business Price: A discounted price available to Amazon Business customers regardless of the quantity purchased. As an Amazon Business seller, you can create a Business Price on any of your offers. Quantity Discount: Tiered discounts available to Amazon Business customers for high-volume purchases. As an Amazon Business seller, you can specify tiers for quantity pricing on your offers.”
This is awesome! It means you can create wholesale pricing within your Amazon account! No more fiddling with different prices, and a separate wholesale login on your website for small wholesale buyers. Now, anyone buying 12-24 units, for example, can simply be redirected to Amazon, freeing up your valuable time and resources for large wholesale orders and for great marketing improvements. Not only that, but it can improve your chances of winning the buy box if you share it, and can help you get more traffic when competing on search results with other brands. Lastly, it can result in larger orders, as people love to get discounts!
You can also manage manual Quotations through Amazon Business. The process is basically:
- When a business buyer requests a new quantity discount, you’ll see it here.
- Set a discount before the Respond by date to increase your chances of making a sale.
- After the Respond by date, the buyer will review all submitted offers and make a purchase decision.
This makes it possible to manage even very large orders through Amazon Business, rather than trying to drive traffic to your website!
Product Documents Can be Uploaded to Your Listings
The last thing we love about Amazon Business is the Product Documents widget. It allows for uploads of User Guides, Safety Data Sheets (SDSs), or Specification Sheets, which can really enhance the perceived value of your product and reduce returns, particularly on these large business orders.
According to Amazon, “On average, customers are 3x more likely to place an order when they download product documents from the detail page.” Wow!
Additionally, you can upload certain documents in bulk to your listings so that you can save a little time in this tedious part of the process.
Let’s dive deeper into Product Documents
Here’s a basic description of what these uploads are:
SDS – Safety Data Sheets are an essential component of the GHS and are intended to provide comprehensive information about a substance or mixture for use in workplace chemical management. In the GHS, they serve the same function that the Material Safety Data Sheet or MSDS does in OSHA’s HazCom Standard.
GHS 101- Safety Data Sheets (SDS) Role in GHS | MSDSonline
Safety Information – this covers a broad variety of content, most importantly contraindications for medicines or supplements. Here’s an example:
Certificate of Analysis – A Certificate of Analysis is a document issued by Quality Assurance that confirms that a regulated product meets its product specification. They commonly contain the actual results obtained from testing performed as part of quality control of an individual batch of a product.
Certificates of Analysis | Sigma-Aldrich
Certificate of compliance – GCC/CPC – Certification means the issuance of a written General Certificate of Conformity (GCC) in which the manufacturer or importer certifies that its non-children’s (general use) product complies with all applicable consumer product safety rules (or similar rules, bans, standards, or regulations under any law enforced by the Commission for that product.)
User Guide/User Manual – A user guide or user’s guide, also commonly known as a manual, is a technical communication document intended to give assistance to people using a particular system. Wikipedia Article
Application Guide – if you have specialized application requirements to vet your customer, you’ll want to put up your application guide. This can include requirements for only companies of a certain size to buy from you, or only companies with professional licenses.
Specification Sheet – a datasheet, data sheet, or spec sheet is a document that summarizes the performance and other technical characteristics of a product, machine, component (e.g., an electronic component), material, a subsystem (e.g., a power supply) or software in sufficient detail to be used by a design engineer to integrate the component into a system. Typically, a datasheet is created by the component/subsystem/software manufacturer and begins with an introductory page describing the rest of the document, followed by listings of specific characteristics, with further information on the connectivity of the devices.
Datasheet – Wikipedia
Comparison Chart – a comparison chart is helpful when you have multiple similar options to choose from, such as automotive parts, various sizes of the same type of product, or various purposes to the product that otherwise wouldn’t be obvious without a comparison chart. This can also be used for performance clothing, shoes, or various types of luggage or jewelry, and is thus helpful across all product lines on Amazon.
Installation Manual – installation manuals are commonly used with any product that isn’t usable right out of the box. These can be complicated, such as GE appliances and parts or relatively simple, such as photo frame wall mount instructions.
2D or 3D CAD Drawings – CAD, or computer-aided design and drafting (CADD), is technology for design and technical documentation, which replaces manual drafting with an automated process. If you’re a designer, drafter, architect, or engineer, you’ve probably used 2D or 3D CAD programs such as AutoCAD or AutoCAD LT software.
CAD Software | 2D And 3D Computer-Aided Design | Autodesk
Product Documents are critical in certain businesses, such as construction, automotive, a baby boutique store, a company trying to decide how to store Hazardous Materials they’re buying – documents help sell products!
Even better, you don’t have to be brand registered to sell on Amazon Business, but having Brand Registry and selling on Amazon Business gets you the best of both worlds. And, it comes very close to the level of information and control vendors are able to exert with their marketing and documentation efforts on Amazon.
Amazon Business - a Great Option for Wholesale Targeting Amazon’s Known High Converting Shoppers
In short, Amazon Business is a fantastic opportunity to target high converting Amazon shoppers for bulk orders. Everyone likes consistent bulk orders; those who target and grow their business metrics on Amazon will be more likely to continue building their online business store. We see opportunities here for companies who supply multiple small wholesales – 12-24 product orders or less, but who buy more than 1 unit, and therefore may be enticed by a discount.
If you’re a store or brand looking to learn more about how to use Amazon to reach an ever growing potential list of online shoppers, we’d love to tell you more about our account management programs!