One simple but often overlooked tool can help to bring your Amazon sales to the next level. By utilizing Amazon's business pricing you can both increase cart size as well as acquire new loyal customers to help grow your brand. Business pricing is a simple yet impactful way to grow your customer base.
What Is Business Pricing?
Amazon allows sellers to offer a special tiered price discounts to businesses. A seller can offer up to five tiers of discounts as an incentive for businesses to purchase products in bulk quantities. This price must be equal to or less than the regular retail price.
Why Are Businesses Ideal Customers?
Businesses make great customers for two major reasons. The first reason is that businesses buy in larger quantities than your typical retail consumer. This leads to an increased average cart size which can lead to higher profit margins and more revenue even with a small discount. The second reason businesses make great customers is they are typically loyal. Many times when businesses find a product they like at a great price they will return to that source to make repeat purchases in the future. This is especially important if you sell a product that is a non-durable good.
Are There Other Benefits?
There are a ton of other benefits to being part of the business seller program. A few of my favorites include reduced referral fees in some categories, exclusive business only SKUs, and seller credentials. Another awesome benefit if you are merchant fulfilled is you can avoid the residential delivery surcharge with FEDEX or UPS as most business customers order to a commercial address.
Summary
Turning on business pricing is a simple and easy way to both increase your customer base as well as increase cart size. There are a bunch of other benefits to being a business seller such as reduced referral fees, savings on shipping, and business exclusive SKUs. Utilizing business pricing can help to elevate your business to the next level.
