Amazon's business sales in 2020 increased 25 times in 5 years!

On March 15, Amazon announced that its B2B enterprise purchasing business, which was first launched in the United States in 2015, has grown rapidly, with sales reaching US$25 billion in 2020, of which third-party sellers accounted for more than 50%.

According to Amazon's official website, Amazon Business is Amazon's commercial procurement site for corporate and institutional buyers . It can help sellers reach a large number of corporate and institutional customer groups while selling to massive individual consumers through Amazon, and meet more abundant bulk purchasing needs.

Currently, Amazon Business Purchasing has covered nine major sites in the United States, Canada, the United Kingdom, France, Italy, Germany, Spain, Japan and India, serving more than 5 million corporate and institutional customers . Popular business procurement products include office and pantry supplies, industrial products, hotel and kitchen supplies, scientific research and medical supplies, and electronic technology products.

Since its launch, Amazon Business Purchasing's annual gross merchandise volume ( GMV) has quickly reached $1 billion, exceeded $10 billion by the end of 2018, and even soared to $25 billion in 2020. In other words, Amazon Business Purchasing has grown 25 times in less than 5 years.

(Image source: marketplacepulse)

It’s important to note that, overall, Amazon’s corporate acquisitions still only account for a small portion of the e-commerce giant’s total sales, which totaled $386.06 billion last year .

The epidemic is a factor that drives the growth of Amazon's e-commerce sales, but it also has a certain negative impact on its enterprise purchasing business. Alexandre Gagnon, president of Amazon Enterprise Purchasing, said: "During the epidemic, many businesses had to close down, so there was no sustained demand for goods on the platform." However, the epidemic also gave rise to the public's demand for personal protective equipment and medical supplies, so Amazon Enterprise Purchasing also introduced many new merchants and launched a purchase channel for epidemic prevention materials for governments and hospitals ↓

Given that the order scale of B2B business is higher than that of the B2C market and its degree of digitization still has a lot of room for improvement, the scale of Amazon's enterprise procurement business is expected to exceed US$100 billion in the next five years.

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