1. Amazon Business Customer Perspectives

2. Sources Used To Purchase Product Categories (% Base)
Trad OP
Paper
EOS
Furniture
Break room
Jan San
Machines
Direct from manufacturers/OEMs 3% 2%
13%
19% 5% 7%
18%
National office products suppliers (delivered)
32%
36%
37%
42%
29%
National office products suppliers (retail)
28%
31%
16%
11%
30%
Independent office products suppliers 4% 1%
Amazon Business
91%
92%
66%
38%
46%
Amazon
10%
eBay 0%
Other online resellers
Warehouse clubs
39%
Mass market retail 8%
25%
Category specialists -
12%
Base
373
377
331
104
110 99
149
Base: US Amazon Business customers purchasing each category
Source: MWA/OPI: Amazon Business Report

3. Sources Losing Sales To Amazon Business (% Base)
Trad OP
Paper
EOS
Furniture
Break room
JanSan
Machines
Manufacturers/OEMs 6% 4%
12%
13%
14%
16%
National office products suppliers (deliver)
43%
46%
48%
31%
22%
35%
National office products suppliers (retail)
42%
40%
45%
28%
29%
38%
Independent office products suppliers 2% 1% 3%
Amazon 7% 9%
23%
26%
19%
AmazonSupply 8%
10%
eBay 0% 5%
Other online resellers
Warehouse clubs
15%
24%
Mass market national retail
17%
Category specialists
Base
341
347
220 39 42 32 69
Base: US Amazon Business customers purchasing each category
Source: MWA/OPI: Amazon Business Report

4. Did Amazon Business Customers Previously Use Amazon? (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

5. Reasons For First Using Amazon Business (% Base)
I was looking for lower prices
69%
Amazon is a trusted brand
46%
I wanted a fast delivery service
45%
I had a good experience buying from Amazon as a private consumer
I wanted a reliable delivery service
33%
I wanted to buy these products online
I just wanted to give Amazon Business a try
30%
I was looking for a more convenient supplier
28%
I was already buying these from Amazon/Amazon Supply for my organization
27%
I wanted a ‘one stop shop’ for a wide range of business supplies
24%
Our previous supplier(s) let us down
15%
I was instructed to do so (company policy)
14%
I wanted a supplier offering corporate credit
10%
I was attracted by the company’s exclusive discounts and promotions
Base
400
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

6. Advantages Of Using Amazon Business (% Base)
Perceived Advantage
% Base
Low prices
71%
Convenience
59%
Rapid delivery service
48%
Free shipping on orders above $49
44%
Exclusive discounts and promotions offered
Good quality products
43%
Reliable delivery service
41%
Good product availability
31%
Wide product range (ie a ‘one stop shop’)
28%
Deep product range (lots of variations of the same product available)
18%
Provides access to a wide range of suppliers through the Amazon Marketplace
16%
Good customer service
Access to product user reviews
Good returns policy/service
13%
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

7. Disadvantages Of Using Amazon Business (% Base)
Perceived Disadvantage
% Base
It is difficult to return products
45%
It is difficult to speak to anyone
41%
You cannot inspect products before purchase
26%
Customer service is poor
17%
There are shipping costs for orders below $49
13%
Price is not competitive 8%
They are not based locally 7%
Product availability is unreliable 6%
No customer-specific product list is provided 5%
Delivery service is too slow 4%
Delivery service is not reliable
Product quality is poor
There are no disadvantages that I can think of
22%
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

8. Price Competitiveness Of Amazon Business (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

9. Customer Service Performance Of Amazon Business (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

10. How Amazon Business Is Seen As Worse For Customer Service
It’s hard to get hold of someone (top answer)
After-sales service is poor
Service is unreliable
I cannot understand them

11. Importance Of Using A Local Supplier (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

12. Perception Of Amazon Business’s Multi-User Accounts Facility (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

13. Perception Of Amazon Business’ Business Analytics (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

14. Perception Of Amazon Business’ Integration With E-Procurement System (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

15. What Delivery Speed Do Amazon Business Customers Actually Want
What Delivery Speed Do Amazon Business Customers Actually Want? (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

16. Importance Of Free Delivery Service (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

17. Future Use Of Amazon Business (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

18. How To Combat Amazon Business

19. Interest In Using A ‘Conventional’ OP Supplier Instead Of Amazon Business (% Base)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

20. What Incentive Would A Conventional Supplier Have To Offer Amazon Business Customers To Switch?
Nothing would induce us to move from Amazon (38 responses)
We are already using a conventional supplier: no inducement is necessary (14)
Offer better prices and discounts (142 respondents)
Have fast (same or next day) delivery (85)
Have free/low cost shipping (57)
Have better deals and promotions (26)
Offer better quality products (17)
Offer a wider product range (17)
Improve product availability (15)
Match Amazon’s prices (10)
Base: 400 US Amazon Business customers
Source: MWA/OPI: Amazon Business Report

21. How To Combat Amazon Business
Keep prices as competitive as possible, especially on core OP items.
Maintain a modern, highly functional e-commerce site, with fully realised SEO and B2C capabilities.
Make sure you are properly resourced for the digital world.
Keep your business supplies product range as wide as possible.
Also sell services, which are more difficult for Amazon Business to replicate.
Offer fast (ie next day), ‘free’, reliable delivery, with easy customer returns.
A key perceived weakness of Amazon Business is the difficulty of consulting staff, so your sales staff must be easy to get hold of, knowledgeable, friendly and courteous.
In short, you must – in the words of one survey respondent – “make it as easy as Amazon!”

22. Understanding and Combating the Appeal of Amazon Business
Panelists:
Ryan Boyington
Charlie Kennedy
Susan Mintmire
George Wood