Amazon B2B: Pricing Strategies for Amazon Business Sellers

To understand the size of Amazon Business, you only have to look at the annualized sales data for 2023: $35 billion in sales, with over 300 million customers.

According to official data, among its top customers are the 6 million companies worldwide now buying on Amazon B2B. It is, therefore, crucial for Amazon Business Sellers to define effective pricing strategies.

Tools like the Marketplace Sellers Benchmark help identify and monitor competitors’ catalogues in marketplaces and Amazon’s price comparator, allowing you to adapt your prices to Amazon’s constant changes.

Differences in B2B pricing

Differentiating between pricing for B2B and B2C markets is key to getting the most out of Amazon Business.

Basic Principles of B2B Pricing Strategies

Focus on added value: Prices must reflect the product’s value to the buyer’s business.
Long-term relationships: Incentives for repeat purchases or long-term contracts foster long-term relationships and aid inventory management.
Flexibility and negotiation: B2B prices must be flexible – within certain limits – and can be adapted according to purchase volume or the length of the business relationship.

Key factors influencing B2B pricing

Purchase volume: Volume discounts are widespread, encouraging buyers to place larger orders to reduce the unit price.
Acquisition and operational costs: Knowing how logistics and operating costs affect the final price is essential when adjusting pricing strategies and to ensure that the price remains competitive in different scenarios.
Market price sensitivity: Identifying the elasticity of demand in your sector will allow you to adjust prices to maximize sales and profits.

B2B pricing strategies for Amazon Business

82% of B2B buyers say price is a decisive factor in their purchases. They also rarely go for the cheapest option since their priority is to find the product that offers them more for less. This highlights the importance of defining smart pricing strategies to maximize your presence in marketplaces like Amazon Business.

Value-based pricing

This strategy involves setting product prices according to customer-perceived value, over and above the production costs.

B2B sellers can charge higher prices for products that stand out for their quality, innovation, or sustainable characteristics, effectively communicating their added value to justify the premium price.

Competitor-based pricing

This involves adjusting prices according to competitors’ prices for similar products. It is prevalent in saturated markets where comparable products abound. It requires constant market monitoring to adjust prices competitively and attractively for B2B buyers.

Loss-leader pricing

In this strategy, extremely low prices are set, often at a loss, to attract customers to the platform or specific products in the hope that additional purchases will offset the initial loss. It is a risky strategy that can be effective when introducing new products or aiming to capture market share quickly.

Price skimming

This strategy involves launching a product at a high price and then progressively lowering it to attract successive market segments. It works well with innovative or high-tech products, where the first group of buyers values novelty and is willing to pay more.

Dynamic Pricing

Dynamic pricing involves adjusting prices in real time in response to market changes, such as fluctuations in demand, competitor pricing strategies, or changes in inventory. For it to be effective, use advanced tools that offer access to competitors’ catalogues, such as the Marketplace Sellers Benchmark. These tools allow you to adjust your prices when changes occur on Amazon, such as Minderest’s Amazon Price Monitoring.

Implementing the best B2B strategy in Amazon Business at all times will allow you to ensure that each product meets market price expectations and helps achieve your long-term eCommerce objectives.

_{Image header:}_Canva_{- Getty Images - Relif // Image 2:}_Canva_{- Getty Images - Sean824}