Amazon Business releases first B2B ecommerce report, highlighting e-procurement
Amazon Business has released its first 2021 B2B Ecommerce in Evolution Report, which examines the transformation B2B e-procurement has undergone in recent years. The report shares B2B trends and insights from U.S. procurement professionals across industries and fields including government, education, health care and commercial industries.
Amazon Business surveyed 250 B2B buyers and 250 B2B sellers in influential procurement roles. In addition to trends, the report provides actionable insights for business decision-makers on both sides for 2021 and beyond.
“Our 2021 B2B Ecommerce in Evolution report underlines the fact that simply leveraging e- procurement is no longer enough,” said Todd Heimes, director of Amazon Business. “Ultimately, we think that organizations have a significant opportunity to maximize e-procurement technologies that will help them overcome operational challenges that diminish efficiency and waste budget. For seller organizations, adapting to meet buyer demands will allow them to remain relevant with their B2B customers. At Amazon Business, we’re committed to helping buyers and sellers navigate the next chapters in their transformation journeys with our technology and expertise.”
According to the report, 85 percent of business buyers said that the COVID-19 pandemic propelled them to move more of their procurement online, and 96 percent said they anticipate their organizations will continue purchasing more online in the future.
For 2021, sellers named providing a positive customer experience as their top priority (62 percent of respondents), followed by expanding customer bases (59 percent), and selling products globally (40 percent). Meanwhile, the top priority for buyers is increasing efficiency, (40 percent), while 34 percent of buyers said reducing costs is a top procurement priority this year, with cost reduction is a higher priority in the education, government, and health care industries than in commercial industries.
In a spotlight of government e-procurement, the report says that 40 percent of government buyers said increasing efficiency within the procurement department was a top priority this year. Many government buyers rely on an informal process known as three bids and a buy, the report says, which involves making a purchase only after reviewing at least three offers. Also, most government buyers are mandated to allocate a certain percentage of their procurement dollars fo small and/or minority-owned businesses. “These requirements add time to the overall procurement process,” the report reads. “So, government buyers are looking online to quickly compare and contrast potential suppliers (bids), filter by certification status, and find additional efficiencies through features like guided buying, multi-user accounts, and reporting and analytics.”
Amazon Business’ full 2021 Ecommerce in Evolution Report is available for download here.