The 2020 Mid-Year Economic Update_long

Amazon Gets Down to Business

Amazon has rapidly built the competencies needed to master B2B distribution the way it mastered the online bookstore. This article, the second in a three-part series, looks at the rise of Amazon Business formerly AmazonSupply and why it presents a clear threat to todays distributor.

This article includes:

  • An increasingly digital market
  • Amazons customer obsession
  • Whats next?

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AmazonBusiness

Amazon has rapidly built the competencies needed to master B2B distribution the way it mastered the online bookstore. This article, the second in a three-part series, looks at the rise of Amazon Business – formerly AmazonSupply – and why it presents a clear threat to today’s distributor.

Imagine a new competitor moved next door to you. This company offered your customers:

  • Open-account purchasing
  • Inside sales reps
  • Free two-day shipping on most products
  • Technical support via live chat or telephone
  • Easy integration into 54 different procurement systems
  • Highly detailed purchase analytics
  • Continuously updated order tracking
  • One of the best websites in the world
  • More than 500 million products available, a huge number of which have detailed user reviews

One more thing: This company is many times the size of yours with a seemingly endless pool of capital and is potentially willing to settle for a lower rate of return.

Would you be worried? You should be, because everything I just listed is offered by Amazon Business today, and much more.

To read the rest of this article plus much more analysis of the threat distribution faces with Amazon Business, click here to download our free report, Your Amazon Business Playbook.

 

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