The last time we checked in to Amazon Business in 2018, the B2B ecommerce marketplace was pegged at over $ 10 billion in annual revenue just three years after it was launched. Now, three years later, annual sales on the platform have topped $ 25 billion worldwide.
In 2018, Amazon reported that users of the platform included 55 Fortune 100 companies, 40% of the most populous local governments, more than half of the 100 largest hospital systems, and 80% of the 100 largest educational institutions for enrollment. We wrote the following back then:
These numbers are only surprising if you were cryogenically frozen in 1999 and just waking up, but it’s impossible to underestimate their importance. In just four years, Amazon Business has massively opened up some of the largest B2B markets. Those buyers up there are all doing very well in some of the biggest B2B industries, and Amazon has put them all in one place on a platform designed specifically for all of their buying needs.
Unsurprisingly, this trend has largely continued. According to an Amazon press release, buyers on the platform now include more than 80 Fortune 100 companies, 90 of the 100 largest US cities and counties, more than 75,000 nonprofits, and 92 of the 100 largest US hospital systems.
Happening now at re: Shape:
Alexandre Gagnon, VP, just announced that we are serving …
5 million companies worldwide
80 of the Fortune 100
92 of the 100 largest hospital systems
45 of the 50 state governments
Register now: https://t.co/IouvKswEb2#reshapebuying pic.twitter.com/auHnHXuEo5
– Amazon Business (@AmazonBusiness) March 18, 2021
If you’re not familiar with Amazon Business, the platform serves as a procurement hub for companies sourcing office supplies, IT products, break room supplies, bulk and bulk goods, industrial and restaurant supplies, and more. Items on the platform range from industrial degreasers to bubble hockey tables and essentially everything in between (including PPE).
Buyers can sort or search by industry or product category. The platform supports business shopping cards and offers volume discounts, business-only pricing, and other perks. A diversity, equity and inclusion feature was also recently introduced to connect buyers with small and diverse sellers.
Third party vendors make up a significant portion of Amazon Business’s revenue – more than half, according to Amazon. This is similar to what the company reported in 2018. With total sales more than double the total sales in 2018, third-party vendors now have annual sales of approximately $ 12.5 billion on the platform.
This is a tremendous opportunity for companies in the B2B space. And this opportunity should keep growing. According to Digital Commerce 360, investment analyst Colin Sebastian of RW Baird and Co. predicted that Amazon Business will generate $ 80 billion in revenue by 2025. In 2018, Sebastian predicted the platform would hit $ 25 billion by 2021. So there is reason to trust his projections.
And yes, this option extends to promo companies as well. All types of promotional items are available from Amazon Business. The platform offers everything from simple branded items to obviously more complex programs.
“Amazon has been an absolute lifesaver for our department,” said Tony Coppola, festival artist relations manager at Sundance Institute, in Amazon’s press release. Without Amazon’s help, a film festival would not have been possible. The speed with which they were delivered and the customer service in solving problems has been exceptional – we and the filmmakers are extremely grateful. “
As we wrote before, “Amazon is not going away. We might as well find a way to get along.” Three years and annual sales of $ 25 billion later, this sentiment continues.