With Launch Of Amazon Business, Amazon.com, Inc. Forays Into A Trillion Dollar Industry
Amazon.com, Inc. (NASDAQ:AMZN) is positioning itself properly to tap into the fast-growing business-to-business (B2B) marketplace with its Amazon Business program. Analysts expect B2B sales to grow at a compound annual rate of 7.7% over the next five years. The business is currently worth more than $8 trillion. Amazon Business is another effort by Amazon to expand its operations that target third-party users as the company hopes to squeeze more revenue from its ecosystem.
Amazon Business officially launches Amazon.com, Inc. (NASDAQ:AMZN) in the rapidly growing business marketplace. The overall U.S. B2B market is worth $8.2 trillion and the online B2B is expected to account for 12% of the market by 2020.
Through Amazon Business, Amazon is offering merchants special features, such as free deliveries on a certain amount of orders and exclusive pricing and product offerings. For instance, users of Amazon Business will enjoy free two-day shipping on orders worth over $49.
In addition to exclusive product access and free shipping, Amazon Business will also offer a range of products including anything from paper napkins to IT equipment. The business marketplace platform will also feature live support for customers, tax exemption programs and credit payment lines.
Through Amazon Business, the company hopes to give business buyers another channel to obtain what they want for resale. Additionally, the business marketplace will enable Amazon sellers to benefit from an expanded pool of customers. Amazon.com, Inc. (NASDAQ:AMZN) sellers will also benefit from rich marketplace data that allows them to properly target their pricing and special discounts.
Study user feedback
Amazon.com, Inc. (NASDAQ:AMZN) has already brought in a number of distinguishing features in the new business marketplace, but the company promised to make the platform even better in the future. Prentis Wilson, VP of Amazon Business, said they will look into the feedback of the first group of Amazon Business users with the aim of innovating and adding new features to the platform to make it better.
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