Amazon Web Services (AWS), Audible, Amazon Advertising, and Amazon.com–Which of these do you think is Amazon’s fastest growing channel?
Did you say Amazon.com? Think again. While Amazon.com is pulling huge numbers year over year and continues to be a dominating force for business, the company’s fastest growing channel is a relative newcomer that has quietly slipped into the main lexicon of B2B sales and become a powerhouse that sellers and buyers alike should be watching closely: Amazon Business.
Just as its name suggests, Amazon Business is an Amazon marketplace exclusively for businesses. It looks and operates like Amazon.com, but offers additional features to help B2B buyers run their business more economically. B2B buyers are able to procure hundreds of millions of products on Amazon Business, many of which cannot be found on Amazon’s other channels. These products include IT products, janitorial products, medical supplies, restaurant supplies, office supplies, and other materials they may need for their staff and site.
Amazon Business is a fairly new addition to Amazon and the B2B space. It was launched in 2015, and has since undergone rapid growth. It’s important to note that Amazon Business isn’t just an experiment or backburner channel for Amazon. Former Amazon CEO Jeff Bezos has made it clear that Amazon Business is a priority as the company looks to expand, and the numbers paint a clear picture of why.
Three years after it launched, Amazon Business surpassed $10 billion in annualized sales. The channel hit $25 billion in worldwide annualized sales in May 2021, and their gross sales grew 2.9 times faster than the total sales for Amazon.com, according to Digital 360. More than half of that comes from third-party sellers, who have the unique opportunity to sell to larger corporations through Amazon Business.
Amazon Business is currently available in the U.S., U.K., France, Germany, Italy, Spain, India, and Japan. Business Prime is currently more limited.
In addition to a wide product selection, the Amazon Business platform offers several unique perks for businesses. For example, business buyers have access to multiple-user accounts (this means they can connect their entire team to the platform), exclusive business-only discounts on products, bulk discounts on products, pallet deliveries, time saving features to help them run their business more effectively, and the option to sign up for a Business Prime membership.
Similar to Amazon Prime, Business Prime members pay a membership fee that gives them access to exclusive services like free same-day, one-day, or two-day shipping on eligible products.
Amazon Business is a bit like the dark web of Amazon, because regular users can’t just find its storefront by searching for it or stumbling upon it. Getting on Amazon Business requires approval from Amazon.
Just like on Amazon’s main channel, businesses can create an account on Amazon Business and join for free. Once a business has created an account and been verified by Amazon, they can then access the Amazon Business storefront.
Imagine how Amazon.com works and you’ll have a great idea of how Amazon Business works: they’re essentially the same. Buyers can add products to their cart, select whether or not it’s a recurring delivery, and purchase products the same way they would on Amazon.com.
Buyer behavior has changed dramatically over the past few years, and B2B buyer behavior and business procurement is no exception. B2B buyers and business managers of today are largely tech-savvy millennials who want to buy products for their business the same way they’re buying products for themselves: totally online, without having to speak to a middleman, and without waiting weeks for their products to be shipped to them. These buyers are looking for something familiar that’s efficient and easy to use. Doing things the traditional way, such as buying directly through a VAR, isn’t cutting it anymore.
B2B brands should be selling on Amazon Business simply because that’s where their customers are and how their customers want to make their purchases. As of May 2021, Amazon Business was serving over five million businesses, and the B2B ecommerce sector at large is projected to increase to $1.8 trillion come 2023. There is a plethora of opportunity in the online B2B space right now, and suppliers who want to grow are going to need to adapt quickly to capture this growing revenue stream.
Another reason why B2B companies should be selling on Amazon Business is because their products are likely already being sold there, and without some kind of control or oversight brands can run into brand protection and reputation problems.
VARs and other third party sellers are aware of the potential that Amazon Business has for business, and when given the opportunity, many of them are flocking to Amazon to list products. The issue is that most VARs cannot be both a good traditional seller and a good Amazon seller. While they might be experts at offline sales, they’re likely not familiar with or well-tuned to the complexities of selling on Amazon. This may lead to product listings that don’t follow basic practices (like having good images and clear, concise product descriptions), poorly selected keywords, inconsistent pricing, and a lack of thought put into overall brand messaging. This will reflect poorly on the product and the manufacturer in addition to the seller, meaning the brand is hurt without any say.
Having a presence on Amazon Business allows you to tidy up your brand messaging, regain control, and ensure that no matter who is selling your product, the B2B customer experience remains exceptional.
Now is an exciting time to be a B2B seller, and Amazon Business is making the B2B experience more streamlined and lucrative than ever. Brands looking for opportunities to grow should be looking at Amazon Business yesterday and partnering with VARs who can help them leverage the platform to their advantage.
If you’re interested in learning more about an Amazon-experienced VAR or how Pattern can help your B2B tech brand excel on Amazon, request a demo and see how our experts can upgrade your marketplace offering.
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If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.
Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.