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Is Amazon Business Pricing Better

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Daniel Wallock Marketing Strategist Wallock Media

Amazon Business (B2B) – Manage Business Pricing and Quantity Discounts

Dont just be an Amazon brand.

I mean that just because youre selling on Amazon doesnt mean that you cant promote the products with content, influencer campaigns, and get your products featured in the press.

If your looking to increase sales on Amazon, I would look away from paid advertising and instead look at using inbound marketing tactics to bring traffic to your products.

You can drive hundreds of visitors per day to your Amazon store or product pages just by creating a strong presence on niche forum sites, Facebook groups and other social media channels.

How Much Does Amazon Business Prime Cost

Amazon Business Prime is available on a paid subscription although businesses can start on a 30-day free trial period. There are different plan packages to choose from based on the number of users in every Amazon Business Account.

The following are the Amazon Business Prime plan packages that you can choose from

  • Essential Plan- Subscription fee is $179 per annum and it supports up to 3 users
  • Small Plan- Subscription fee is $499 per year and it supports up to 10 users
  • Medium Plan- Subscription fee is $1, 299 per annum and it supports up to 100 users
  • Enterprise Plan- Subscription fee is $10,099 per annum and it supports over 100 users
  • Public Sector Plan- Subscription fee is $3,499 per year and it supports over 100 users also

Its paramount to note that the Public sector plan is exclusively reserved for US federal government, State governments, Public learning institutions, healthcare facilities, and Non-profit private universities.

What Happens To Your Amazon Account

When you sign up for an Amazon Business account, you can choose what to do with your current Amazon account. You can make it into the business account, which is what you might want to do if you already have a second Amazon account that you use for work. The other option is to make a new account specifically for the business. This is the best option if you are signing up for Amazon Business to use with your small business and you dont want to mix your personal and business purchases.

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What You Need To Know About Amazon Business

B2B ecommerce sales worldwide are expected to top $6.7 trillion by 2020 and there are plenty of opportunities for online sellers to grab a piece of the pie.

Amazon Business, the companys wholesale marketplace for business customers, is now available in the US, UK and Germany, offering online sellers the opportunity to grow their sales by reaching enterprises of all types and sizes, as well as universities, hospitals, government agencies and non-profits.

Every business has purchasing needs and the Amazon Business Seller program could open the door to new customers with bigger orders to place. Heres why online sellers should consider the B2B marketplace.

Why You Might Want A Different Card

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Other cards are more travel-friendly

The Amazon Business Prime American Express Card isnt an ideal companion for all business trips. It doesnt charge foreign transaction fees, but American Express isn’t as widely accepted internationally as Visa or Mastercard. The card does pack some travel protections, but so do many other cards. The $0-annual-fee Bank of America® Business Advantage Travel Rewards World Mastercard® credit card, for example, features travel accident insurance, lost luggage reimbursement, trip cancellation coverage and trip delay reimbursement. You’ll earn a flat 1.5 points per $1 spent . As a Mastercard without foreign transaction fees, this card is well equipped to travel.

There are cards with simpler reward structures

The aforementioned Bank of America® Business Advantage Travel Rewards World Mastercard® credit card is a good option to consider instead thanks to its flat rate on everything you buy but you can do even better if you’re willing to pay an annual fee. The Capital One Spark Cash Plus earns 2% cash back on all purchases, not to mention a massive sign-up bonus.

There are cards bigger bonuses and longer 0% intro APR periods

The Ink Business Unlimited® Credit Card will earn you 1.5% back on everything, including Amazon purchases, but it also offers some stellar introductory offers. Youll get a hefty sign-up bonus and some interest-free breathing room.

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How Many Household Members Can Share A Prime Account

An Amazon Prime account can be shared with other family members to make up an Amazon Household. The Household can hold up to two adults, four teens, and four child profiles. The main account user has primary control of the account.

With a Business Prime account, the number of users depends on the plan. Business Prime accounts can have anywhere from a single user to more than 100. The primary business owner can limit access and create roles in the admin account for other users.

A+ Content And Other Marketing Tools

If youre selling through Vendor Central Amazon offers vendor the option to . You also have the ability to participate in promotional programs such as Subscribe & Save and Amazon Vine, in which your product is sent to top reviewers before it ever hits the shelves. Consumers value what other consumers have to say far more than they do advertisements, so user-generated content can translate into a sales boost.

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Can I Change My Amazon Prime Account To A Business Account

You can add Business Prime benefits to a personal account by subscribing to Business Prime Duo, but youll still need a Business account .

To make changes, go to Amazon Business and use your Amazon-linked email address to log in.

Youll need to look for a Business Prime logo in Your Account and click on this image. The next step in this process is to click on the link to Manage your membership and change its status.

Amazon Business Review: Is It Really More Cost Effective

Amazon Business Seller Program: Business Price and Quantity Discounts – Manage Pricing

Sally Jones Updated: September 9, 2020

To sustain this free service, we receive affiliate commissions via some of our links. This doesnt affect rankings. Our review process.

Are you looking for easy, affordable, and streamlined ordering for all of your business products?

Thats the tagline online retail giant Amazon.com uses for its Amazon Business service. It offers businesses of all sizes a simple solution to streamline your buying process.

Does it live up to the hype? Our experts investigate.

  • Whats The Best Office Equipment?
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    Other Small Business Benefits

    The allows Amazon Business customers to apply their tax-exemption status to eligible purchases from Amazon, Amazon Digital Services, Warehouse Deals, Amazon Services or other participating sellers.

    The guides users through the process of enrolling in the program. You can update your status and edit or upload certificates. Once you review your order, you can modify which items should have the tax-exemption certificate applied.

    Anna Attkisson also contributed to the reporting and writing in this article.

    Amazon Prime Vs Amazon Business: Whats The Difference

    Amazon Prime is mostly for people, whereas Amazon Business is primarily for businesses. One of the most significant distinctions that will be important to small company owners is this.

    Unlike a shared Amazon Prime account shared by all employees, an Amazon Business account allows you to see who is ordering, what each individual or group is purchasing, etc. Thats ideal for ensuring that purchases are both required and within budget.

    You also receive a separate Amazon Business account customer service line, unlike Amazon Prime.

    Amazon Business Prime is an Amazon membership that offers subscribers several advantages. Free delivery, discounts, and member-only deals are all included with a membership. AWS QuickSight-powered expenditure reports are also included in Amazon Business Prime.

    The benefits of Amazon Business Prime go beyond expedited, free shipping and deep discounts on large business items. Users of Amazon Business Prime get access to the following exclusive features:

    Although there are several benefits and reasons to open an Amazon Business account, it is not for everyone. Only if you use your Amazon Business account for personal purposes is there a catch. Combining company and personal expenditures might make tax time more difficult. If you arent using it only for business purposes, you should speak with your accountant before joining up.

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    Does Amazon Business Pose Any Disadvantages To Buyers Or Sellers

    An Amazon Business account can provide sellers exposure to a wide range of consumers and B2B merchants, which can boost sales and revenue. FBA also helps sellers by letting Amazon do the work of shipping orders and handling refunds and returns. However, disadvantages to an Amazon Business account include limited buyer communication and limitations on what can be shipped to customers. Selling on Amazon can both increase and limit brand awareness and restrict the buyer/seller relationship.

    Repricing With Amazon Business

    Amazon Monopoly Is Better than Free Market  Anton Tarasenko

    A common misconception with selling on Amazon is that sellers think having the lowest prices for their products will result in winning the Buy Box. Although this is an important factor, its not the only criteria. To keep your profits high and increase your chances of winning the Buy Box, you must optimize your prices with repricing software.

    Our repricer works in the exact same way for Amazon Business. Within your Repricer.com account, you have the option to enable business repricing under your pack details.

    You can reprice according to the rules previously set up in your account or you can create new ones. The Business repricer will also respect any existing minimum or maximum prices already applied to your products. When it comes to bulk purchases, Amazon will generate the appropriate invoices for the buyers.

    Whats the bottom line? Upgrading to an Amazon Business Seller account will provide you with a competitive edge and guaranteed visibility to bigger buyers. If you want more information on using Repricer.com for Amazon, sign up for your free trial and see what it can do for your sales figures.

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    Compare Item Prices And Guided Buying

    One unique feature you wont find on your personal Amazon account is Amazon Businesss price comparison feature. You can select multiple items and compare their features and costs at the same time, all on a single page.

    If you purchased Business Prime and youre tired of hearing the question of What am I allowed to buy? youll love that Amazon will answer that question for you. When you set up Amazon Business for your company, you can pick a policy type, a product, or a particular seller and mark these items as preferred or restricted.

    How Does It Work

    There is no front-facing Amazon Business shop, and you cant access it by typing a URL into your browser. To access Amazon Business and all of the goods offered via it, you must first establish a free account and sign in. Theres also little to no learning curve, as Amazon Business looks and functions almost like normal Amazon.

  • Business and Account Settings: Sign in to your free Amazon Business account, and then click on your name situated in the upper right corner to get a drop-down menu containing your Account options. Amazon Business users get access to extra features such as business settings , business analytics , and supplier management .
  • Search and Buy: Youll notice the usual Amazon search bar at the top of your Amazon Business account after logging in. To find a specific item, type in a keyword or a product number. If youre looking for anything in particular, such as a printer, youll be able to separate your results just like you would on Amazon. Because this is Amazon Business, you may additionally filter products by Business Prime eligibility, seller type , and seller certification .
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    What Businesses Can Use Amazon Business

    Businesses of all sizes can take advantage of the Amazon business account. Its a great way for small businesses to separate personal purchases from business expenses. In theory, any kind of business can make use of it. For instance, a small e-commerce business may find it useful to automate the delivery of crucial office supplies. Larger companies, such as those with more than 100 employees, may find it helpful for ensuring guaranteed delivery of office supplies and other goods.

    Rohde said, We provide easy access to hundreds of millions of products everything from IT equipment to janitorial supplies to businesses of all sizes and across all industries.

    He also says, We constantly hear from Amazon Business customers that our business-only prices across such a vast selection of products are key to solving their tail spending challenges. Tail spending can be costly and time-consuming for businesses, as it often requires managing hundreds, or even thousands of different suppliers.

    If your business earns money by selling products to other businesses, if possible to use Amazon business as a Marketplace to reach your customers. If you sell office supplies or any other business good in bulk at discount prices and want to move toward an e-commerce business model, its possible to register as a seller on Amazon and then create a business profile.

    PLANERGY can integrate with Amazon’s catalog for better procurement management

    Selling Your Services And Getting Paid

    How to Get a Better Price from Amazon Suppliers

    You can sell one-time or recurring services.

    When users browse on Amazon, they can see listings for your services while shopping.

    Note, however, that you are not required to accept every job that is offered to you. you will get a listing of all jobs for which you are qualified, and you can claim only the ones that best fit your schedule.

    You can sell two types of services:

  • Pre-packaged services, where you define the scope of what you are offering and allow people to purchase based on estimates
  • Recurring services, where your customers buy a subscription plan that includes recurring appointments
  • After you complete your job, you will get paid by Amazon, so you do not have to handle the financial aspect yourself.

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    What Is An Amazon Business Account

    An Amazon Business account is a that any business can use. It works for sole proprietors with only one account, but it is also very helpful for larger businesses that can use approval processes to keep spending in check.

    You can create more user accounts so employees can make purchases for the company. An individual Amazon Prime subscription works with Amazon Business, or you can buy an that starts at $179 a year for up to three users and scales to enterprise level.

    Pick An Account Option

    You can either:

  • Convert your existing Amazon account, or
  • Create a separate account solely for use with the Amazon Business program.
  • If you choose option #1, be aware that your personal purchases and history will be merged into your business account, and users that you add may be able to see this information.

    If you choose option #2, youll be asked to enter a different email address for one of your two Amazon accounts.

    I chose option 2.

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    Ask Customers Who Email You For Feedback

    The easiest way to get product reviews on Amazon is by simply asking customers who tell you how much they love your product.

    Whenever you receive an email, a customer service call or positive feedback on your social media channels, just ask them politely if they are willing to share their experience with other customers on Amazon.

    Set Your Prices For Page One On Amazon

    Amazon

    If you get your pricing wrong, you will either lose money or wont sell anything.

    Setting the right price on Amazon doesnt have to be that hard for private label products where you dont have any competition on your Amazon product page.

    In general, there are two variables you need to consider for every single product you sell on Amazon.

  • You want to be profitable
  • You want to maximize profits
  • First, you need to consider all of your costs, and what your prices would be for you to be profitable on Amazon with those costs included.

    You need to calculate your floor price.

    Second, your price must be competitive related to your most important search terms to get your product on page one of Amazon search results.

    More than 70% of sales on Amazon happen on page one of organic search.

    No one will find and order your overpriced product on page 23.

    How to Calculate Your Amazon Floor Price:

    To operate in the green, you need to know all your costs, take all of them into account, and then determine your price floor.

    You can find below the list of costs which you have to take into your equation.

    Product Acquisition Cost
    • On all returns, Amazon keeps 20% of the original commission as a return fee
  • Your own returns-related fees
  • Variable overhead allocation costs
  • There are also category-specific costs which you need to consider. For example, if you sell clothing, Amazon will charge you FBA fees related to customer return shipping costs.

    How to Find Your Upper Price Floor:

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    Use Wrong Positive Seller Feedback To Get Product Reviews

    People often confuse seller feedback with product reviews.

    Unfortunately, the often really good product feedback is not very visible for other customers.

    Review your seller feedback regularly for people who actually provide positive product feedback and ask them via email to also write a product review.

    Suitable For: Undercutting Competition

    Repricing is the most common strategy employed by Amazon retailers to match up to the competition. Either manually or through the use of automated repricing tools like RepricerExpress, you can adjust the price of your product to match the lowest amount at that time.

    As mentioned above, repricing is not a sustainable strategy over the long run in most cases. Also, you need to constantly adjust the prices to a) ensure that youre matching up and b) to prevent losses at a time when all other retailers increase their price.

    Using a tool is always better than meddling with pricing manually. RepricerExpress allows you to set the baseline for each product below which youd not want to compete on pricing. It also adjusts prices dynamically all day long, so you can make the most of a price increase without even getting involved.

    What you can do:

    • Take a look around and see how many other retailers already exist for your choice of products. Also, keep an eye on their seller ratings.
    • If there is too much competition, employ repricing. Do this with products that have a heavy profit margin, as you dont want to end up with peanuts after every sale.
    • Automate repricing so as to avoid manual intervention and to make the most of price fluctuations through the day.
    • Consider adding products to your catalogue that have little to no competition but sufficient demand and sell them to build your seller rating over time.
    • Ask customers to leave more reviews. Dont be pushy, though.

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