Peeling the New Amazon Business Marketplace Onion: Part 1 – Selection, Pricing and Experience [PRO]

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In our previous post on Amazon Business (an expansion of Amazon Supply), we discussed the basics of the new release and model in its current form. But, there’s much more to this story for procurement professionals – good and bad. After spending time with members of the Amazon team, and “reading through the tea leaves” from both these conversations and other sources, there are some critical factors to consider for buyers, sellers and technology partners when they “dance with the [Seattle] bear.” Some of these are specifically commercial, and others are more strategic (IP protection, for instance). We’ll also highlight some no-brainer short-term opportunities and some more strategic opportunities and issues. For example, Amazon Business is currently an e-marketplace and not an e-commerce platform that facilitates non-intermediated commerce. Yet that doesn’t mean Amazon couldn’t become a true “platform” intermediary leveraging the technical components of the IaaS and PaaS side of the company house. Such a scenario could be closer than many might think (e.g., consider Mechanical Turk in relation to emerging contingent work platforms or think about Amazon Home Services/TaskRabbit applied to fixed-fee B2B services). Anyway, I’m foreshadowing too much. Let’s get started and dive in. In the first part of this PRO research series, we’ll focus on selection, pricing and user experience as well as highlight 10 shortfalls (or “opportunities,” if you will) in the solution stack that warrant serious consideration.

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