Amazon targets business supply chain

The BBC reports that Amazon is targeting companies with a new service selling business supplies, such as laptops, power tools and cleaning products.

Called Amazon Business, the online marketplace offers firms VAT-free pricing, VAT invoices, and software to track and limit spending.

Amazon has had success with a similar service launched in the US in 2015. In its first year of operation in the US, the business supply service generated more than $1bn (£800m) in sales. It launched a similar service in Germany last year.

The UK online business-to-business market was worth £96.5bn in 2015 according to the ONS, only slightly lower than the £119bn spent by consumers.

Amazon said there would be more than 100 million products available on the new marketplace, which would include ordinary office supplies and storage solutions as well as more specialist products such as microscopes and test-tubes.

Bill Burkland, head of Amazon Business UK said the service would offer ‘a new set of unique business features – from reporting and analytics to spending limits and purchasing workflow approvals’. It will also offer free one-day delivery on orders of £30 or more.