This year promises to be remarkable for Amazon Business. While the 2024 revenues haven’t been reported yet, some analysts have projected the B2B arm of Amazon will pull in more than $67 billion in Gross Merchandise Value. This comes to approximately 25 percent YoY growth on already massive numbers, and Amazon continues to roll out new programs targeting long-tail spend, presenting an enormous opportunity for B2B sellers.
We recently wrapped up our 2025 B2B Amazon Industry Pulse survey (sign up for our webinar on January 23 to get early access to the report). Our annual Pulse report assesses how B2B sellers on Amazon are feeling about the year behind and the one to come. One initial finding of our survey is that many B2B companies are not fully leveraging all the opportunities available to them on Amazon.
Why is this?
One area we explore in our annual Pulse survey is the top challenges companies experience in selling on Amazon. We believe these challenges are preventing B2B sellers from truly capturing the value—and the profits—that the platform offers. Let’s take a closer look at–and challenge the assumptions–of what’s holding back B2B sellers from growing their business on the world’s largest online marketplace!
Challenge #1: The Conservative Nature of B2B Companies
One of the most significant challenges is the traditional culture and slow decision making processes at B2B companies. These firms are conservative by nature and many have not fully embraced Amazon's potential due to fears of channel conflict. Often compounding this challenge is a slow moving decision making process at B2B firms that requires endless business case building to justify investments in new channels, particularly those the company is unfamiliar with, like digital commerce.
Unlike the fast-paced, test-and-refine approach to Ecommerce, B2B companies often prefer to have all the answers before starting something new. This cautious approach can be a roadblock because successful Amazon programs are inherently iterative and require companies to move ahead without perfect information.
For example, most companies won’t know which of their products will sell best on the platform before they actually try selling them. Sometimes products perform better on Amazon than through traditional channels. But what these companies don’t account for is that selling on the channel can also expose a company to new customer segments for their products that they never imagined reaching prior to selling on Amazon.
Embracing the unknown and experimentation can lead to discovering new opportunities. This requires overcoming internal fears and reluctance, necessitating that these efforts begin in the C-suite. Concern regarding cannibalizing traditional channels (e.g. simply shifting demand from legacy channels over to Amazon) can hold companies back, even though the evidence heavily points to companies earning significant incremental revenue from a well-run Amazon channel. Smart B2B companies recognize this, and are reaping the rewards of embracing Amazon's platform.
Challenge #2: Complexity and Resource Constraints
Our Pulse Report highlights another significant challenge: The perceived complexity of selling on Amazon and the reality of a lack of internal resources to properly manage the channel. To be sure, selling on Amazon isn’t as easy as flipping a switch. Many companies find Amazon's processes daunting and strange, and they’re often not wrong in believing that they lack the necessary expertise and alignment within their teams to be successful.
However, the truth is that resources and well-established best practices exist in the market that can be retained and leveraged to build a profitable Amazon channel for most companies, even after considering the costs of such resources.
Expert agencies like Enceiba exist precisely to help sellers navigate Amazon's complexities. With decades of experience, we’ve developed a set of best practices for successfully managing and growing the channel. In other words, businesses don't need to reinvent the wheel.
A greater challenge to B2B companies, particularly larger firms, lies in the internal complexity of the organization and alignment of diverse business units and functions, such as finance, fulfillment, sales, and inventory management. For example, Fulfillment by Amazon (FBA)—one of the core Amazon programs that eliminates the complexity of order fulfillment—requires placing products on consignment at Amazon’s fulfillment center. This concept is foreign to many large companies, and it can be difficult for firms accustomed to supporting large distribution or retail customers to adapt new processes needed to properly manage Amazon. Participating in FBA leads to far higher revenues on the channel, as it makes products eligible for Amazon’s coveted Prime shipping service, which is highly preferred by customers. The benefits of using FBA clearly far outweigh the challenges and inconveniences of adjusting internal processes to support it.
Understanding and updating internal processes in order to take advantage of services like FBA requires training and open-minded leadership. But with the right support and willingness to learn, companies can successfully integrate Amazon into their sales strategies. Complexity and alignment are not reasons for inaction on an enormous opportunity. They can be overcome.
Challenge #3. Lack of Awareness of Amazon Programs
You might be surprised to learn that even companies currently selling on Amazon can face challenges to growth because they are not plugged into what Amazon itself is doing to enhance and grow B2B sales. Too often, sellers don’t pay attention to the numerous B2B-specific features and programs Amazon offers to enhance sales. Companies often miss out on large sales opportunities when they do not have a direct relationship with Amazon or stay on top of new programs.
For example, many of Amazon’s new programs targeting the pre-planned portion of B2B spending are under-utilized by sellers. Vendor Central’s Retail Deal Desk and Seller Central’s Configure Quote Engine programs are specific cases in point. Many companies that sell on Amazon are just doing “business as usual” and are unaware of these new initiatives.
This is where partnerships with firms like Enceiba can make a significant difference. Enceiba's deep relationships with Amazon allow us to bring new opportunities to clients, helping them stay ahead of the curve and fully leverage Amazon's offerings.
2025 holds immense potential for B2B sellers on Amazon, but only if they put aside their concerns, embrace change, and work to overcome their preconceived notions of what selling on Amazon entails. With the right approach and mindset, B2B sellers can unlock significant growth opportunities. In fact, if your firm isn’t generating double-digit percentages of your total Amazon sales through Amazon Business, you are likely leaving money on the table.
Enceiba can help your firm navigate these challenges, ensuring you capitalize on the vast opportunities Amazon Business presents. By embracing the iterative nature of selling on the platform, aligning processes and expectations, leveraging available resources, and being proactive and open to new opportunities, B2B companies can thrive on Amazon in 2025 and beyond.
Give us a call if this sounds like something your firm is ready to explore.