Amazon B2B No Thanks.....

[VTR]

Got an email and an employee took the phone call from Amazon today… Sigh

" Hi! I am reaching out about your accounts enrollment in our exclusive industry vertical pricing program.

You currently have zero visibility in the program, but with back-to-school season in full swing, the largest education and government buyers on Amazon Business are actively purchasing through IVP right now. I’d recommend testing it out for the next 2-3 months to capture this wave.

I can get the prefilled template uploaded for you before EOD — just say the word. Or if you’d prefer to review it first, I’ll send the excel over for your approval.

As a reminder, you would get pure net new coverage when enrolling in IVP, as well as savings on your referral fees and FBA fulfillment fees.

Let me know if you have any questions!

Best,"
Name Deleted for privacy.

Reply…
"Greetings Redacted,

Unfortunately, the same issues from our previous communication continue to make Amazon B2B unprofitable for our business.

1. Buyers are Amazon’s customers not our customers, as we are prevented from contacting or marketing to them in any way, even to support our products, and the overwhelming majority of the time we do not even know the buyer’s actual name.
2. While returns are lower for B2B buyers, the core issue of offering an additional discount/terms for the same unmitigated return abuse with Amazon return policies, is unprofitable.
3. We are forced to provide terms on top of discounts for Amazon B2B customers, despite them not being our marketable customers.
4. We are forced to match pricing on platforms that have lower fee structures like Wal-Mart and Wal-Mart vendors, on top of invoice terms.

Until we have received a plan of action regarding how Amazon will address the core issues with B2B, we will continue to pay third parties to grow our own B2B business off the Amazon platform. Not killing the messenger here, but it’s an Amazon “Let them eat cake” kind of thing.

I do appreciate your time and your previous thoughtful response.

V/R

Sitting Adult Daycare Provider For This Establishment

[Thelunatick]

@VTR

2. While returns are lower for B2B buyers, the core issue of offering an additional discount/terms for the same unmitigated return abuse with Amazon return policies, is unprofitable.

Not necessarily many B2B buyers are drop shippers, I have had many returns from business customers that the customer used to call me asking why the receipt inside showed a much lower price then they paid. This was the #1 reason I took our phone number off our receipts.

@VTR

3. We are forced to provide terms on top of discounts for Amazon B2B customers, despite them not being our marketable customers.

Yeah and the 120 day terms are great. 120 days to pay then 14 days till it is released then 2 days to make it to our bank.

@VTR

4. We are forced to match pricing on platforms that have lower fee structures like Wal-Mart and Wal-Mart vendors, on top of invoice terms.

I have many of my popular items suppressed because I raised the price with the price increase I received.

$38.99 they recommend I charge $33.87
Lets break that down
33.87- 15%= 28.79 - 8.12 (highest cost to ship this item as under 1 lb remote area)= 20.66 - 21.97 (cost of the item) = -1.30 Yes I am sure customers will be delighted that I am losing money on each sale to save them $5

[Tallytony]

I’m not one to defend Amazon B2B, having blasted it as recently as here

New business hour delivery requirement for seller-fulfilled shipments

One of my first posts in the OFSE was precisely complaining about this https://sellercentral.amazon.com/forums/t/anyway-to-limit-business-price-to-commercial-addresses-exclude-residential-addresses/802376 It’s not fair to have to give a discount for businesses and then pay the surcharge for residential. HDMS, whom I always thought one of the most knowledgeable posters, didn’t see the problem with it, showing how as an FBA seller he was detached from the problem. The years have gone by (and…

However, I do see (and have taken) some benefits on the business only offers
You don’t have to give a regular price, so the business price is whatever you want it to be.
Particularly good for larger or bulk orders. And it has also saved me having to deal with quote requests, which are usually unmatchable BS
It may be better for FBM, which I well know you aren’t, but IMO is the main salvageable part of B2B and the reason I still suffer it

[VTR]

@Tallytony

You don’t have to give a regular price, so the business price is whatever you want it to be.

You can still loose the buy box with a higher price for B2B and retail if you do not meet the Amazon pricing policy. Meaning your item will not show up on searches if you are not green lit on price, then Amazon expects a discount for B2B if you want the blue badge for B2B.

Here is what happens when you are above your listing price for B2B.

I am already forced to match a vendor on WalMart at 129.95, but Amazon expects an additional discount.to $122.50, which I could offer if I was not already held to 129.95 in the first place being all my competition is at 143, 139… etc. AND we have to float the 30+ day terms for payment on the inventory.
Let Amazon eat cake, if they are going to squeeze my margins with their bots. I can spend the same opportunity cost lost at Amazon on third party marketing to higher profit channels.

They can have one or the other, but not both the lowest price and additional discounts plus terms.

[Dogtamer]

@VTR

…
I can spend the same opportunity cost lost at Amazon on third party marketing to higher profit channels.
…