Yesterday, Amazon stated that Amazon Business is expected to have sales of more than 10 billion US dollars this year, and pointed out that "business users have purchased millions of products" through this site, including 55 of the Fortune 100 companies.
Amazon Business is Amazon's one-stop business procurement site for corporate and institutional buyers. It was launched in 2015, replacing Amazon Supply services that Amazon has operated since 2012. A year later, Amazon disclosed that Amazon Business sales exceeded $ 1 billion. For Amazon, B2B (business-to-business) sales represent another significant growth opportunity. Amazon's total revenue in 2017 reached $ 177 billion, and it reached nearly $ 53 billion in the second quarter of 2018.
This new sales data also shows that Amazon Business is growing faster than any other Amazon unit. For example, it took 7 years for Amazon's consumer market business sales to increase from $ 1 billion to $ 10 billion, and AWS (Amazon Web Services) sales did not exceed the $ 10 billion mark until 2016. It has been online for 10 years.
Investment bank Baird analyst Colin Sebastian released a research report on Tuesday saying: "We believe that Amazon's B2B business has long-term potential beyond the core B2C (business-to-consumer) business, and many investors It also underestimated this opportunity. "
Amazon also released data saying that corporate sellers on the Amazon Business platform have 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 radical expansion of the platform, as Amazon has recently forced it to accept longer payment cycles.