Core conclusions:Amazon Business can be activated using a professional sales account. The monthly fee is $39.99, and the sales commission ranges from 8% to 15% depending on the product category. There is no additional charge for activating Amazon Business. This service is suitable for manufacturers who have standardized SKUs and can handle FBA deliveries. It serves as a secondary channel, working in conjunction with Alibaba International’s matchmaking platform.
1. What is enterprise procurement? It involves bringing B2B procurement processes into Amazon’s framework.
Amazon Business was launched in 2015, providing online purchasing options for businesses and organizations. According to Amazon’s official statistics, its annual global sales exceed $10 billion, with approximately 50% of these sales coming from third-party sellers. A survey by B2BecNews revealed that about eight out of every ten American business customers use Amazon for searching and purchasing goods. Unlike Alibaba International’s model, where buyers initiate inquiries while sellers negotiate prices, Amazon Business allows businesses to purchase repetitive items such as consumables, accessories, standard parts, and safety products directly through the online marketplace. Buyers can place orders based on the listings provided, with transactions being guaranteed by the platform.
II. Fee List: Monthly fees, commissions, and FBA-related costs
The cost structure is the first step in determining whether a service or product is worth purchasing. The professional sales plan requires a monthly fee of $39.99, which is consistent with the fees charged by enterprise accounts. There are no long-term contracts, and users can stop using the service at any time. Sales commissions are charged at a rate of 8% to 15% of the sales amount, depending on the category of products sold. The platform automatically deducts these commissions. Enterprise purchases also offer tiered commissions: the larger the order value and the more items involved, the lower the commission rate. This directly benefits factories with their bulk purchase orders. For those using FBA for fulfillment, additional storage and delivery costs are included. Enterprises with multiple orders can enjoy FBA-related discounts. There is no additional charge for signing up for the Enterprise Purchase seller plan. Features such as enterprise-specific pricing, quantity discounts, and exclusive documentation upload are available for free.
| project | costs | description |
|---|---|---|
| Professional Sales Plan Monthly Fee | $39.99 per month | In line with corporate policies, no long-term contracts are required. |
| sales commission | Sales volume: 8% to 15% | By category, the platform will automatically deduct the fees accordingly. |
| FBA Payment Fee | Calculated separately based on size and weight | There are discounts for enterprises with multiple orders. |
III. The performance requirements are even stricter than those for ordinary sellers.
The assessment criteria for enterprise buyers are higher than those for ordinary sellers: the order defect rate (ODR) should not exceed 0.5% (ordinary sellers are required to have an ODR of 1%), the cancellation rate before shipment should be less than 1%, and the delay rate should also be less than 1%. Additionally, each package ordered by enterprises must be equipped with a tracking number, packing list, and purchase order number. If these standards are not met, the enterprise’s buying rights will be revoked, but its ordinary seller account will remain intact. This means that factories that cannot maintain stable quality control and timely delivery will not be allowed to participate in enterprise purchases.
IV. How do Ali International Site and other departments divide their responsibilities?
The procurement processes handled through the two channels are different. Alibaba’s international platform is suitable for orders that require large amounts of money, customized requirements, and multiple rounds of negotiations. With a annual investment of just 29,800 yuan, users can receive inquiries. On the other hand, the enterprise procurement option is better suited for standardized purchases, repeat orders, and transactions with small to medium amounts (ranging from dozens to thousands of dollars). Users earn commissions based on sales, and there is no need to pay annual fees. In terms of product categories, enterprise procurement tends to focus on items like industrial supplies, labor protection products, office and teaching supplies, and maintenance parts—products that are likely to be purchased again after the first time. The buyers of these products are typically corporate administrative, procurement, and engineering departments. Meanwhile, the international platform is more effective for purchasing whole machines, equipment, and other specialized projects. A reasonable division of responsibilities would be: the international platform handles large custom orders, while enterprise procurement takes care of repeat orders from existing customers and small to medium-sized orders from new clients. When the same product category is offered on both platforms, the pricing systems should be designed separately to prevent large B2B customers from lowering their prices after seeing the retail prices listed online.
V. Three Steps Forward
The first step is to create attractive retail listings (including images, keywords, and A+ pages). Companies can use the same listings as retail buyers. The second step is to enable the “Company Purchases” feature on the seller’s platform for free, allowing the upload of product documents such as CAD drawings and instructions. The third step is to set up discounts based on quantity and price levels (for example, 10 to 49 units at 95% off, and 50 units or more at 90% off). This approach helps to target corporate buyers. In the first three months, focus on two or three key SKUs, refine fulfillment and performance metrics, and then expand the range of products offered. Here’s a budget estimate: for the initial phase, aside from a monthly fee of $39.99, allocate $3,000 to $5,000 for inventory preparation and promotional advertising. Decide whether to invest more after achieving satisfactory repeat purchases. There are only two indicators to determine whether it’s worth investing more: the proportion of corporate orders compared to overall orders, and the interval between repeat purchases by corporate buyers. If the former continues to increase, it indicates that the channel selection is correct. If the latter indicates that the SKU deserves additional inventory, then it’s time to invest more.
6. Common questions
1. The factory doesn’t have an Amazon store. Can I still use Enterprise Buy to make the purchase?
No. Enterprise Purchase is a set of B2B features available for professional sellers. It requires registering an Amazon store (with a monthly fee of $39.99) before you can use these features for free. Chinese sellers can register a US-based Amazon store through Amazon’s global store opening service, and then use these features without any additional costs.
2. The commission rate is 8%–15%. Is this more expensive than the annual fees charged by international websites?
It depends on sales volume. For products with annual sales of $500,000, the commission rate is 10%, which amounts to $50,000. For Alibaba International Station’s Export Service, the cost is 29,800 yuan, plus the additional expenses related to direct marketing efforts. This translates to an annual cost of 40,000 to 80,000 yuan. The key is whether the gross profit margin can cover these costs. For products where retail prices are more than three times the manufacturer’s price, the commission pressure isn’t too high. However, for products with limited pricing flexibility, it’s better to be cautious about entering this market.
3. Which categories are not suitable for corporate purchases?
Customized products that require detailed drawings for manufacturing, items that are too heavy or large to be handled by standard shipping methods, as well as orders with a total value exceeding $10,000, are not suitable for being sold through the online marketplace. Such orders should be handled through International Site or exhibition channels.
For factories that export standard products, the value of Amazon Business lies not in replacing Alibaba’s international platform, but rather in providing a automated alternative for repetitive procurement processes. A monthly fee of $39.99, along with a 8% to 15% commission rate, can attract institutional buyers and replenishment orders. If the gross profit model is viable, then it’s worth investing in this service. If you need to calculate the costs associated with purchasing goods through corporate channels, please contact Qihang Zhilian at 180-0327-6609.
Qihang Zhilian Foreign Trade Research Institute
