Amazon Business Introduces “Prefer Small and Medium Enterprises” Feature to Facilitate Purchases

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Amazon Business has unveiled a new feature called “Prefer Small and Medium Enterprises,” designed to assist large customers in making purchases more seamlessly from small and medium enterprises (SMEs) that operate on the Amazon Business platform. This feature empowers procurement professionals to specifically target and procure supplies from SMEs with fewer than 250 employees and less than €50 million in revenue.

SMEs represent a vital component of the economy, contributing significantly to employment and turnover in the UK private sector. Despite their importance, Amazon Business research indicates that many SME owners struggle to scale their businesses online effectively. However, there has been a notable increase in spending by enterprise customers with SME selling partners on Amazon Business, underscoring the strategic importance of increasing procurement from SMEs for larger organizations.

The SMEs selling on Amazon Business encompass a diverse range of businesses, from regional suppliers to small family-owned enterprises. By leveraging this new feature, these SMEs can enhance their visibility to multinational enterprises, thereby increasing their chances of securing larger orders and fostering business growth.

Fabricio Pedroza, Director for Amazon Business UK, expresses excitement about how this new feature addresses challenges faced by customers. He notes that while B2B ecommerce offers significant growth opportunities, SMEs often struggle to reach multinational enterprises due to resource limitations. Conversely, enterprise and public sector customers express a desire to increase procurement from SMEs to support strategic goals such as diversifying their supplier base and mitigating risk.

Moreover, recent legislation in the UK mandates public bodies to consider SMEs as part of their procurement processes, further incentivizing businesses to spend more with SMEs. This legislation aims to help SMEs secure a larger share of the substantial expenditure of approximately £300 billion per year.

Amazon Business has cultivated strong relationships with tens of thousands of UK selling partners, the majority of which are SMEs. Through initiatives like “Prefer Small and Medium Enterprises,” Amazon Business continues to serve as a vital channel for SMEs to expand their sales and reach a broader customer base, thereby facilitating their growth and success in the marketplace.