May 6, 2016
Amazon's B2B marketplace notches up $1 bn in sales
May 6, 2016
Global e-commerce major Amazon.com Inc. sold $1 billion in goods on its new B2B marketplace which it began last year.
The billion-dollar sales figure makes it a significant player in a fragmented industry worth more than $8.2 trillion in the US, according to a Reuters report.
Out of this figure, online B2B spending is expected to reach $855 billion this year or over 9 per cent, Forrester Research Inc. has estimated. And by 2020, 12 per cent of the $9.39 trillion business-to-business market will be online, according to the research company.
Amazon Business offers US businesses exclusive pricing and discounts for buying in bulk, free two-day shipping for orders of more than $49, tax exemption and the option to get products delivered with an Amazon guarantee.
"We are continuing to grow at a rate of 20 per cent month-on-month, and that highlights ... how strong the need is in this segment," Amazon Vice President Prentis Wilson said.
The business marketplace, which Amazon has described as one of its important areas for growth, extends its role as a middleman for third-party vendors, which account for more than 40 per cent of the company's sales. This also helps Amazon gain an edge in the fast-growing online business-to-business sector.
Wilson said Amazon added more than 30,000 sellers and more than 300,000 businesses to its platform in the past year and continues to add "thousands of customers" every week.
Amazon's customers on the platform range from companies like
Cardinal Financial Corp to consumer products makers like Henkel & Co and institutions like the University of California-San Diego and the University of Illinois.
Some of the most widely sold products on the platform include computer and information technology equipment, office supplies, lab equipment and food service supplies.
Amazon Business has also started beta testing an offer to extend lines of credit to businesses that register on its platform, Wilson said.
These lines of credit could range from tens of thousands of dollars up to $1 million, Wilson added.
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