Morning news on September 12th, Beijing time, Amazon's one-stop commercial procurement site Amazon Business for corporate and institutional buyers has only been online for 3 years, but its sales this year are expected to reach more than 10 billion US dollars, which will represent A major milestone.
Amazon posted a blog post on Tuesday, disclosing the latest sales forecast data above, and highlighted the “multiple business users” who purchased products through this site, including 55 of the Fortune 100 companies.
Amazon Business went live in 2015, replacing Amazon's Amazon Supply service, which has been in operation since 2012. A year later, Amazon disclosed information that Amazon Business had sales of more than $1 billion. For Amazon, the B2B (business-to-business) sales business represents another major growth opportunity. In 2017, Amazon's total revenue reached $177 billion, and in the second quarter of 2018 it reached nearly $53 billion.
This new sales data also shows that Amazon Business is growing faster than any other Amazon business unit. For example, Amazon's consumer market sales increased from $1 billion to $10 billion in seven years, and AWS (Amazon Web Services) sales did not exceed $10 billion in 2016 until now. It has been online for 10 years.
Investment bank Baird analyst Colin · Colin Sebastian released a research report on Tuesday: "We believe that Amazon B2B business has a long-term potential beyond the core B2C (business to consumer) business, and many investments They also underestimated this opportunity. ”
Amazon also announced data that the number of corporate sellers on the Amazon Business platform has reached “hundreds of thousands”, and more than half of its $10 billion in sales came from third-party merchants. But not all sellers are happy with the aggressive expansion of the platform because Amazon has recently forced it to accept longer payment cycles.