Amazon Prime is one of the most popular paid subscription shopping services in the United States, but you may be less familiar with Amazon Business. Let's look at how Amazon Business works and the types of organizations it's best for.
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What is Amazon Business?
Amazon Business is an online marketplace tailored to companies to assist with their business purchases. Similar to a regular Amazon account, there are free and paid versions of the service.
Amazon Business is a good option for businesses of all sizes — you can sign up whether you’re a sole proprietor, small business, or enterprise company. With Amazon Business users can:
- Search hundreds of business-related products.
- Get free one-day shipping on eligible orders.
- Receive business-only prices.
- Utilize the analytics dashboard.
- Analyze spending patterns with Business Prime.
- Receive extended 45- to 60-day payment terms with Business Prime.
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Amazon Business vs. a regular Amazon account
The main differences between Amazon Business and Amazon Prime are the cost and how you can use the account. A Prime membership is for consumers who want access to shopping and entertainment. You can share benefits with family members and enroll two adults and up to four teens. The basic account is free, and Prime costs $14.99 per month or $139 per year.
In comparison, Business Prime is for organizations that need to purchase inventory, equipment, and office supplies. You can share access with your team and give access to between one and over 100 users. Pricing varies based on the total number of users:
- Free for one user with limited features.
- $179 per year for up to three users.
- $499 per year for up to 10 users.
- $1,299 per year for up to 100 users.
- $10,099 per year for over 100 users.
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As a Business Prime member, you can receive generous discounts and save money on the items your business purchases the most.
How to open an Amazon Business account
If you're unsure about investing in Business Prime, you can register for a free Amazon Business account. Click "Create a free account" on the homepage and enter your business or work email address. You'll also need to provide some additional information about your company. Once you've registered, Amazon will verify your information and finalize your account.
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Benefits of Amazon Business Prime
Are you currently an Amazon Business member and unsure whether Business Prime is worth the price tag? Here are some of the most significant benefits of Business Prime.
Save money on business purchases
Many businesses pay for Business Prime because it helps them save money on necessary business purchases. As a Business Prime member, you can receive generous discounts and save money on the items your business purchases the most.
Some sellers offer additional pricing discounts for items bought in bulk. Plus, you'll receive free one-day shipping on hundreds of items.
Apply for tax exemption
Amazon allows businesses to apply for tax exemption under its Amazon Tax Exemption Program. Amazon can help you determine whether or not you qualify for the program. From there, you can apply for your tax-exempt status on any eligible purchase from Amazon or one of its affiliates.
More visibility into your business spending
Amazon provides visibility into your business spending through its analytics dashboard. The dashboard provides a visual overview of your business's spending patterns.
This information can help you make better budgeting and spending decisions. You can easily search receipts, invoices, and other business documents from one central location.
Receive an Amazon Business American Express card
As a Business Prime member, you'll receive an Amazon Business American Express card. This card comes with no annual fee, and you can receive either 5% cash back or 90 days to pay interest-free on your purchases.
Extended terms for pay by invoice
Amazon also offers extended terms for pay by invoice, which means your business can receive 45- or 60-day payment options instead of the standard 30-day payment terms.
Take advantage of guided buying
You may have employees who log into your Business Prime account and purchase items for the business. With the guided buying feature, you can create policies that ensure employees only purchase approved items. You can also tag your preferred suppliers and restrict specific product categories.
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Who Should Use an Amazon Business Account?
Businesses and organizations of all sizes can benefit from opening an Amazon Business account. Small businesses can use their Amazon Business account to get discounts on bulk orders and access business-only pricing and deals. E-commerce businesses can use the account to purchase wholesale inventory and improve their procurement process.
Medical practices can use an Amazon business account to purchase medical supplies at discounted prices. Schools and nonprofits can also use the account to buy supplies in bulk and take advantage of tax-exempt purchasing.
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CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
