Amazon brings quick deliveries to work with Business Prime
Online business-to-business transactions will reach $1.2 trillion by 2021 in the U.S. market alone. At least, that’s what Forrester Research analyst Andy Hoar thinks, and it explains why Ecommerce giant Amazon is pushing a new Business Prime Shipping service. This is a market, broadly defined, as anything that a business might buy for itself: from industrial supplies to construction supplies, to office supplies, and more. Big players in the industry as it exists did not fare well on the market as news of Amazon’s intentions broke.
In the 90s, Amazon pretty much singlehandedly put independent bookshops out of business. Then, it took over almost all other forms of retail. The things that are left – generic drugs, business-to-business supplies – are its next targets. And there is every possibility that Amazon can conquer them as easily as it conquered its original set of targets. The company’s product offering today is vast, everything from cuddly toys to cloud computing and streaming video. It has literally become an online everything shop, and it’s hard to see how smaller operations can compete with it.
Amazon’s share price has appreciated by 30% so far this year
SOURCE: Yahoo Finance
Amazon’s new Prime membership for businesses is a simple proposition: take all the stuff that made Prime a hit with households, and apply it to business. It’s available in the U.S. and Germany for anywhere between $499 and $10,099 annually, depending on the business-in-question’s size.
Andy Hoar thinks that Amazon’s latest venture into the business world is one with a lot of potential. He said: “I don’t see the same ceiling in business-to-business sales as I do in retail. In retail, people want to go to the store to see and touch things. For business sales, people don’t want to have to go to the store.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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