Amazon’s Biggest Growth Potential May Be B2B Ecommerce

Posted on by Beth Negus Viveiros
Amazon B2B ecommerce
Bank of America projects that by 2021 Amazon Business will capture 10 percent of the U.S. B2B market.

The next great frontier of growth for Amazon may lie in B2B ecommerce, according to Bank of America analyst Justin Post.

Given the often complex nature of B2B procurement, particularly in government and education, the hurdles of successful B2B ecommerce are trickier than in B2C. As CNBC reports, the bank projects that the total addressable market for B2B e-commerce will grow to $1.4 trillion by 2021, nearly double its estimate for consumer e-commerce.

By 2021 Amazon Business will capture 10 percent of the U.S. B2B market and five percent of the international B2B market, projects Bank of America, generating over $125 billion in added value for the etail titan.

Another major B2B move for the company was the recent introduction of Amazon Day for Business. This follows the Seattle company’s rollout last month of Amazon Day, which enables all Prime members in the U.S. to choose a day of the week to have all their purchases grouped and delivered together.

The program is part of the company’s Shipment Zero sustainability initiative, to help make all  shipments eventually net carbon zero.

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“We’ve been testing this program with a group of Prime members and Amazon Day has already reduced packaging by tens of thousands of packages,” says Maria Renz, vp of delivery experience at Amazon.

Amazon isn’t the only big brand making a global B2B ecommerce play. Last summer, Walmart debuted plans to open 50 B2B stores in India to support the retailer’s growing B2B ecommerce initiatives. In February, it began a partnership with the PhonePE Network to offer a mobile payment option at those outlets, allowing smaller businesses that may not have a credit line to make payments directly from their bank accounts.


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