Jan 09, 2018
Amazon has forged into the B2B market with Amazon Business and has already hijacked more than one million business customers. This B2B-specific offering provides business-only pricing on at least 9 million products and access to more than 85,000 business sellers.
Amazon’s tendency to overtake emerging markets is nothing new—just look at what it has done in retail, consumer packaged goods, or CPG, and industrial supply. Given Amazon’s rapid land grab in these industries, businesses in B2B should be fast-tracking their efforts to develop a strategy ensuring they can keep their slice of market share.
It’s tempting for B2B businesses to adopt an, “if you can’t beat them, join them” attitude and sell their products directly on Amazon. But joining the Amazon marketplace isn’t the sole e-commerce answer for most companies. With every product sold, Amazon not only takes a percentage of revenue but, more important, owns the relationship with the customer and the data that comes with that relationship. Amazon will continue to cannibalize B2B businesses that can’t provide the same flexible, simple buying experience on their own commerce sites.
Read the full article here.