Amazon Business Hits $25 Billion in Annual Sales
Amazon.com, Inc. said its business-to-business segment has reached $25 billion in global annualized sales, six years after its launch. More than half of the company’s annualized gross merchandise sales came from third-party sellers.
Amazon Business, as the company’s B2B division is called, rolled out in the United States in 2015. Since then, the department has grown to cover eight more countries and now has over 5 million customers in total.
Domestically, the company’s quickest-expanding customer segments are enterprises and public entities. Amazon Business serves 45 states, 90 of the 100 largest US cities and counties, and many other public entities. More than 80 of the Fortune 100 companies, including Citigroup, Cisco, Intel, and ExxonMobil, currently use Amazon Business, according to the company’s press release.Businesses of all sizes rely on this service to purchase everything from ergonomic desks to IT-related equipment.
Amazon Business also works on developing software solutions made for small to mid-sized companies. These products aim to help business owners simplify their clerical tasks and save some time and financial resources in the process.
For example, Amazon Business’ collaboration with Intuit’s QuickBooks allowed its clients to simply integrate Amazon Business purchases into their accounting system and have the purchase reconciliation automated.Amazon Business is just a small piece of the online shopping giant’s annual net sales, which reached $386.06 billion in 2020. The shopping platform’s other solution aimed at businesses, Amazon Web Services, finished the year 2020 with annual revenue of $45.37 billion, which is almost 30% more than the year before. In Q4 of 2020, this cloud-computing solution generated just above 10% of Amazon's total sales, but it also yielded more than 50% of the company's entire operating profit during the same period.
Amazon was among the companies whose sales spiked the most during the COVID-19 pandemic as buyers stayed at home and relied upon ordering goods online. The Amazon Business’ sales soared as the eCommerce industry had to move fast last year to meet the needs of its expanding and demanding client base amid the global health crisis.
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