Register to sell through Amazon Business Seller Program to increase your sales to businesses on Amazon.
Business sellers have features that appeal to other businesses. Amongst those features are sales tax exemptions, volume discounts, and a streamlined ordering process because of the use of POs and other accounting standards.
If you’re a business on Amazon, consider joining Amazon Business Prime to get even more benefits for your business.
Become a seller on Amazon Business today! We’ll go over the requirements, features, and benefits of Amazon Business in this article.
Amazon Business Seller Program Requirements
Not all Amazon sellers are allowed to sell through Amazon Business. The requirements for this service are much more strict than the requirements Professional sellers are required to meet:
- Under 1% pre-shipment cancellation rate
- Lower than 2% late shipping rate
- Lower than 0.5% order defect rate
- Tracking number available on all business order packages
- Packing slip with all business orders
- Purchase order number available with every business order when provided by the customer
Amazon Business Seller Cost
Currently, there’s no additional cost for sellers to join this program if they’re already subscribed to the Professional selling plan. There are also no separate fees for Business sellers, though the language Amazon uses suggests that there may be a change in the future:
We may implement fees specific to the Amazon Business Seller Program in the future. The program is based on a month-to-month contract, which can be cancelled at any time by opting out.
Amazon Business Restrictions
There aren’t any restrictions to sellers participating in Amazon Business Seller Program. Sellers can still use FBA or any other Amazon service or program they’re currently using.
There are several advantages to Business sellers that Amazon features:
- Business pricing and quantity discounts available only to business customers
- Tiered referral fees so you pay lower referral fees on large business transactions in core B2B categories
- Enhanced product content so you can show CAD drawings, user guides, and more
- Display certifications like ISO or other business certifications
- Profile editor so you can show your logo and tell your story
- Business-only offers that are exclusive only to business customers
- Search function changes that make your product easier to find
- Automatic tax exemption for sellers participating in Amazon Tax-Exemption program
- Claim diversity, quality, and ownership credentials
For most sellers who have fantastic metrics, there’s really only one major disadvantage: Net 30 terms. Business customers can have 30 days to make payment, but sellers can opt to have immediate payment for a 1.5% processing fee. This change has to be made through Settings > Account Info > Invoiced order payment settings.
If your business relies on having a more consistent cash flow, then you may want to pay the 1.5% processing fee.
The default option is “When the buyer pays Amazon (Latest by 7 days after the invoice due date).” Amazon does guarantee payment by 7 days after the invoice due date if the buyer is late in paying.
Your Payments and transactions will be split into Standard Orders and Invoiced orders, so you’ll have to look up orders based on the type of customer. While not necessarily a disadvantage, it can be tedious to have to look up the type of client and then click on the correct link to search for a transaction if you’re already on the Payments screen.
Other disadvantages may be:
- Increased time configuring B2B settings, products, and offers
- Potential change in fees or fee structure for Amazon Business Seller Program
- Different settlement or payment period for Invoiced Orders
The disadvantages aren’t necessarily large obstacles to overcome. Even the 1.5% fee shouldn’t stop you from selling B2B since those would have been sales you wouldn’t have otherwise had.
Check out these other articles for your business:
- Amazon to QuickBooks Online accounting series
- Sign up for Amazon Transparency to protect your brand
- Pros and cons of offering free shipping
- Apply for Amazon Subscribe and Save to increase sales