US online giant is challenging business goods suppliers
Local businesses stocking sought-after items such as cleaning supplies and technology appear to be flocking to the purchasing website launched by the world’s largest e-commerce company.
Amazon Business Australia was founded a year ago and competes directly with market stalwarts Officeworks, Bunnings and JB Hi-Fi.
In the second half of the launch year, orders increased by 155 percent compared to the first six months, and tens of thousands of businesses signed up and placed hundreds of thousands of orders.
“When we started, we had a lot of hopes for how the business would be received by Australian businesses,” Amazon Business Australia country manager Lena Zak told AAP.
It is already available in 10 countries and more than eight million businesses worldwide shop on the website.
“But of course it’s always a little bit different in Australia and so we’re really pleased to have had such a fantastic first year in the market,” Ms Zak said.
The website serves customers from all industries, including technology, education, healthcare and hospitality, and all sizes, from individual traders to corporate and government organizations.
“Really, anyone who needs to buy something to keep their business going,” Ms. Zak said.
Amazon Australia says its top categories are technology and electronics, office products, cleaning and industrial supplies.
Best sellers include break room and cleaning supplies, beverages, paper products and technology accessories.
More than 14,000 Australian sellers have marketed their products on the website, which adds Carnival Cruise Line’s Australian operations as a major customer.
Amazon Business offers analytical tools to track customer savings from bulk purchases and compare purchases over time, Ms. Zak said.
Many businesses in Australia have very traditional, manual processes such as paper or spreadsheets to manage purchasing and purchasing activities.
Amazon Business research shows Australian companies spend an average of $257,736 per year and nine hours per week managing their purchasing activities.
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