If you’re an Amazon seller, you’re likely to be aggressively selling B2C alongside the rest of your competitors on Amazon. By only selling on Amazon, you’re excluding this market of customers altogether.
1. B2B is on the Rise
A report from Forrester Research in 2017 estimated business-to-business (B2B) eCommerce transactions would reach $1.2 trillion by 2021. This accounts for more than 13% of all B2B sales within the United States (up from the $889 billion in sales by the end of last year).
B2B eCommerce is growing, and you can’t afford to ignore this market. As the eCommerce consumers market grows, so does the B2B market. Most businesses will go down the route of selling B2C first, leaving huge opportunity for B2B businesses. B2B ustomers would never shop on Amazon because they need consistency in the quality, require larger quantities and are looking to build a long term relationship with the seller.
2. Longer Relationships
As opposed to selling on Amazon, you’re likely just pushing for a quick sale. Having B2B customers will allow you to build long term relationships, sell more in quantity and diversify your customers.
B2B customers are the most valuable customers that your business can have. They buy product from you at consistent intervals. They buy in bulk and they provide stability for your cashflow.
By providing an extra level of service for these special customers, you can be rewarded with consistent and valuable business every single month without having to acquire new customers. While yes, the margins you make on each product will be significantly lower, you can easily calculate how much you’ll have coming in each month by large order quantities.
3. Sell on Amazon Business
Most of your competitors on Amazon are only looking at one target market. If you diversified, could this change your entire business? Luckily, Amazon also have a Business marketplace you can consider selling on.
Amazon’s B2B marketplace is for sellers who want to sell to business buyers, people who buy for work, and managers who oversee buyers. The types of operations involved in B2B eCommerce on Amazon include:
- Consumer retailers who have the type of inventory that can also appeal to businesses, and the desire to expand their operations in that direction
- Existing, small B2B eCommerce sales entities
- Larger manufacturers, wholesalers and distributors looking to expand their current B2B sales channels
Would you consider selling B2B? What would your biggest challenges be if you were to? Feel free to send us an email to discuss!
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