Amazon Business Sales to Exceed $83 Billion by 2025

In April 2015 , Amazon Business, which focuses on the B2B market, was launched in the United States, and subsequently opened sites in the United Kingdom, Germany, France, Italy, Spain, Japan, Canada and India.

Five years after its launch, Amazon Business Purchasing has surpassed $25 billion in sales in 2020. According to Marketplacepulse, Amazon Business Purchasing has grown faster than Amazon's B2C business. In 2016, its annual sales were $1 billion. In 2018, its annual sales exceeded $10 billion.

Marketplacepulse data

Third-party sellers have also become a major pillar of Amazon Business Purchasing. It is reported that more than half of Amazon Business Purchasing's sales come from third-party sellers.

In addition, Amazon Business Services serves more than 80 of the Fortune 100 companies, including Citigroup, Intel, Cisco Systems, and ExxonMobil.

Justin predicts that by 2025, the global B2B e-commerce market will reach $5.7 trillion, and Amazon Enterprise will account for 1.5% of the market share, reaching $83 billion.

Justin believes that although the profit margin of B2B business is controversial, the launch of Amazon Enterprise has greatly increased Amazon's potential market and valuation capabilities. In addition, Amazon has good same-day fulfillment capabilities and an active third-party market.

Marketplacepulse said that Amazon's business has always been relatively low-key, partly because Amazon rarely mentions it. In March of this year, Amazon Business launched a special area for epidemic prevention and control supplies, which made many people realize that Amazon also has its own B2B business.

Justin also believes that Amazon Enterprise has huge upside potential. If Amazon can occupy 5% to 10% of the market share, its scale will reach 200 billion to 600 billion US dollars.

Of course, B2B business is not that easy to do. Compared with the B2C market, it takes more effort to acquire customers, maintain relationships, promote products, facilitate transactions, and ensure logistics in the B2B market.

Amazon Business