Amazon Business promotes business procurement from SMEs with the introduction of a new feature in the United Kingdom. This feature enables procurement professionals to make targeted purchases from sellers with fewer than 250 employees and less than 50 million euros in revenue.
With the new feature, called ‘Prefer Small and Medium Enterprises’, smaller and medium-sized sellers receive a boost. They are a cornerstone of the British economy, accounting for around three-fifths of employment and half of the turnover in the private sector.
Scaling SMEs online
SMEs selling on Amazon Business vary from regional suppliers to small, family-owned businesses. Amazon states that it aims to support them in scaling their business online, something the company says they have been inquiring about frequently. The online marketplace giant sees ample room for growth, as British enterprise customers have increased their purchases from smaller and medium-sized sellers by 60 percent in a year.
Purchasing from SMEs is a strategic priority for enterprises.
The new feature makes SMEs more visible to multinational enterprises, according to Amazon. Larger orders can help smaller and medium-sized sellers grow.
Addressing two challenges
According to Fabricio Pedroza, Director for Amazon Business UK, the new SME feature enables customers to address two of the challenges they are currently facing. Firstly, they can better reach multinational enterprises that they previously found difficult to engage with. “At the same time, we know from our enterprise and public customers that they want to buy more from SMEs in order to support strategic procurement goals such as diversifying their supplier base and mitigating risk, specifically in the public sector where organizations face new legislative goals.”
‘Buying from SME’s supports strategic procurement goals.’
New legislation is encouraging businesses to spend more with SMEs. It aims to help SMEs secure a greater share of approximately 300 billion pounds of B2B expenditure per year in the United Kingdom. Amazon is increasingly focusing on the European market for business sales, with logistical investments among other initiatives.
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- Source: https://ecommercenews.eu/amazon-business-encourages-purchases-from-smes-in-uk/
