Amazon.com, Inc. (NASDAQ:AMZN)’s Other Multibillion-Dollar Activity? It’s Amazon Business
In the recent times, Amazon.com, Inc. (NASDAQ:AMZN) has been talking much about its cloud computing business known as Amazon Web Service (AWS). Among the things, the company has recently said that AWS was on track to breach $10 billion in annual sales. AWS also accounts for about 50% of Amazon’s operating profit. But there is another not-so-famous but quite promising business that Amazon is developing: Amazon Business.
Amazon.com, Inc. (NASDAQ:AMZN) recently shared some details about its business and enterprise facing operation called Amazon Business and the numbers look great. In its one year of operation, orders worth more than $1 billion have been completed on the wholesale marketplace.
Facilitating sales worth over $1 billion in just 12 months is no mean feat considering that it took Amazon more than a decade to bring AWS to its present level. Therefore, Amazon Business is promising to be the next multibillion-dollar business for Amazon.
What’s Amazon Business about?
Amazon Business is focused on selling to businesses and enterprise customers. It arose out of demand for a business-oriented marketplace, according to Amazon’s Prentis Wilson.
Amazon.com, Inc. (NASDAQ:AMZN) started experimenting with a business-facing marketplace in 2012, then calling it AmazonSupply. The trial was successful and in 2015, Amazon renamed the unit as Amazon Business and opened the platform for more wholesalers and distributors. With Amazon Business, Amazon is targeting the more than $7 trillion wholesale market.
What’s the progress?
For the 12 months, Amazon Business has registered a remarkable progress. More than 9 million items are now listed on the business-oriented marketplace, sharply up from just 500,000 listings in 2012. Amazon says that more than 30,000 third-party wholesalers and distributors serve more than 300,000 business customers in the Amazon Business marketplace.
Some of the prominent customers that use Amazon Business for procurement include the University of California, Henkel and a non-profit known as DonorsChoose.
What about the growth?
Amazon Business is growing at a rapid rate of 20% per month. Although Amazon.com, Inc. (NASDAQ:AMZN) isn’t disclosing whether the business is already profitable or not, it believes that it is a great shot to the $7 trillion wholesale economy.
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