Remember Amazon Supply? It’s the same site that Amazon.com Inc. AMZN rolled out in 2012 which sold lab equipment, janitorial cleaning chemicals and other office supplies. Amazon is shutting that down.
But don’t worry. It has on Tuesday launched a bigger and better version of Amazon Supply, Amazon Business.
Amazon Business is a marketplace where business customers can purchase a vast range of products (from daily office supplies to equipment like tractor parts).
The marketplace, which is specifically aimed at business shoppers, comes with features like multi-user accounts and a unique "business-only" pricing. This might help customers get exceptional deals for either purchasing a huge amount of goods or just because the manufacturer chooses to offer special prices to corporate customers.
This is not all. The Jeff Bezos led company has also integrated a way for businesses to take advantage of applicable state tax exemptions.
This move clearly shows that Amazon is serious about foraying into the over $7.2 trillion B2B sector. Amazon has said that millions of business customers have bought goods on the regular Amazon site in the past year and that it now wants to directly offer the convenience of shopping online to businesses.
Amazon Business faces strong competition from Chinese e-commerce giant Alibaba BABA. Alibaba is a seasoned player in this field.
To use this site, businesses will have to register (for free) and they will be eligible for free two-day shipping on orders of more than $49.
Amazon currently has a Zacks Rank #3 (Hold).
Investors can also consider stocks such as Groupon Inc. GRPN and Autobytel ABTL. Groupon sports a Zacks Rank #1 (Strong Buy), while Autobytel carries a Zacks Rank #2 (Buy).
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