Why Staples and Office Depot need to merge
Amazon.com launched its new Amazon Business marketplace earlier this year and now companies such as cloud-based e-commerce solution provider ChannelAdvisor are making it easy for suppliers to tap into the platform’s potential.
"The combined company will allow us to provide more value to customers and more effectively compete in a rapidly evolving environment,” said Ron Sargent, Staples chairman and CEO.
Amazon Business, previously known as AmazonSupply, is the latest iteration of the retailer’s marketplace tailored for businesses where approve sellers connect with suppliers able to meet quality and quantity requirements. The concept is similar to the type of commercial sales operations run by traditional office products retailers and is likely what Staples chairman and CEO Ron Sargent means when he describes the rapidly evolving competitive environment as justification for Staples pending acquisition of Office Depot.
AmazonSupply was launched in 2012 and grew to more than 2.2 million products, but in April of this year it was replaced by Amazon Business and a marketplace component was added. That’s where ChannelAdvisor comes in. It provides B2B sellers with listing and order integration support on the new marketplace so they can target customers with offerings, special pricing and other discounts for business customers.
“Unlike AmazonSupply, Amazon Business is open to third-party sellers that want to grow their B2B sales,” said Scot Wingo, ChannelAdvisor executive chairman. “Buyers on the marketplace can expect large selection, and they can purchase from an online channel that is integrated with top systems for accounting, work flows and approval systems. B2B sellers can also set exclusive prices for these customers.”
Sellers must be approved to sell on Amazon Business, according to Wingo, and to be accepted companies must a performance minimum set by Amazon and have an acceptable seller rating to demonstrate a high-level of customer satisfaction. Additionally, buyers must be approved to purchase on Amazon Business.
To get a buying account on the marketplace, shoppers must create a new account and register their tax ID. Once the account has been created, they can add buyers and share payment and shipping information, Wingo explained. Through its ChannelAdvisor for Brands initiative, the company provides holistic e-commerce support that enables branded manufacturers to boost product sales and complement activities on other online channels.
Brands can expand direct-to-consumer strategies with ChannelAdvisor Marketplaces using sites like Amazon and eBay, promote products on various online advertising channels with ChannelAdvisor Digital Marketing, and drive buyers to their certified retail partners from their websites using ChannelAdvisor Where to Buy.