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Amazon Prime vs Amazon Business: Which is Best for Your Small Business?

Amazon Prime vs Amazon Business: Which is Best for Your Small Business?

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Though Amazon started off as an online bookstore, the online shopping platform has grown to dominate the world of e-commerce. As part of this transformation, ‘Amazon Prime’ was launched in 2007 – a service that offered one-day delivery on around a million products.

Now, however, Amazon Prime offers much more than this, with innumerable discounts, access to amazing deals during special events such as Prime Day, free movies and TV series on Prime Video, Prime Reading, free listening to certain music on Amazon music and tons more, for $12.99 a month or $119 per year.

As Amazon became more connected to other online businesses – and many of these began to rely on the platform to buy (and sell) products for them – the platform launched ‘Amazon Business’ in 2018, with the release of Amazon Business Prime following in July 2019.

Since then, many small business owners have taken the leap to purchase Amazon Business Prime, though many are still on the fence about whether Amazon Business Prime can offer more value for money than an individual Amazon Prime account.

 

What are the unique advantages of Amazon Business?

With all Amazon Business Prime plans, small business can benefit from fast free one-day shipping on millions of items and unlimited free two-day shipping on over 100 million items, just like with Amazon Prime.

However, Amazon Business Prime account holders also receive discounts and deals on products, which are often even better than those offered to Amazon Prime subscribers. What’s more, Amazon Business Prime members get access to deals on products and services not offered to individual Prime account holders, from vendors such as GoDaddy, McAfee, and H&R Block.

Amazon Business Prime subscribers also get access to unique discounting schemes, such as quantity discounts, which are applied when you buy more than one of the same product. These discounts tend to get increasingly higher the greater the number of products ordered.

Additionally, Amazon Business Prime offers progressive discounts, offering greater discounts on the items your business buys the most.

The range of discounts offered by the service is one of the major draws of getting an Amazon Business Prime account as, if your business does a lot of spending with Amazon, then you can save money, despite the higher cost of the plans compared to Amazon Prime.

Amazon actually has a tool that you can use to predict the Return of Investment of when using an Amazon Business Prime account, and you can always use the 30-day free trial to make sure you’ll benefit from the service, before making a monetary commitment.

No matter the size your business, or what plan you opt for, all of the Amazon Business Prime plans afford the same benefits for shopping and shipping.

In addition to this, Amazon Business Prime has a range of tracking and analytics tools.

In the Essentials and Small Business Prime plans, businesses gain access to spending visibility, allowing you to analyse spending patterns and informing future budgets, while collaborations with third parties allow businesses to send surveys to customers, which can real insights into customer buying and motivation.

Moreover, Amazon WorkDocs becomes available as part of the essentials plan with 250GB of storage, allowing those in your business to search and collaborate on invoices, receipts and other documents relevant to your business.

Business owners can also create policies to guide employee buying, to help prevent procurement violations and can even restrict purchasing access to certain users.

It is the Amazon you love, for work.

 

What are the disadvantages of Amazon Business Prime?

There are a few features you don’t gain access to with an Amazon Business Prime membership that won’t affect your business, though it may result in your leisure time suffering a little.

With Amazon Business Prime, you don’t have access to entertainment perks such as Prime video, Prime reading, Twitch prime and Amazon music. However, with the Amazon Business Prime Duo plan, you can add the Amazon Business Prime Benefits for an extra $69 a year, though only 1 user will be able to use the account.

The only other potential downside is the higher cost of the Amazon Business Prime membership, with the plans relevant to small businesses – essentials and small – costing $179 and $499 per year respectively, allowing 3 or 10 users to use the account.

For businesses that do a lot of spending with Amazon, these prices will be easily justified by the discounts you get with your Amazon Business Prime account. You may also need multiple people within your business to be able to use the account, which is only possible with Amazon Business Prime.

However, in some cases, when a business is very small and only uses Amazon occasionally – and not for bulk orders – an individual Amazon Prime account may present better value for money than that business.

 

Amazon Prime vs Amazon Business?

 

Kim's Review of Amazon Business vs Amazon Prime: 

When I was offered the opportunity to “upgrade” my Amazon Prime account to an Amazon Business account, I felt privileged as it touted “business-only price savings”. Then I found out it's actually free to upgrade your Amazon account to Business (click here for details).

I immediately switched over my account… but realized quickly it wasn't the right fit for me. I do own a small business but as a solopreneur with a home based business and no  physical location with  employees a business account just didn't fit with my purchasing habits.

I recommend you first consider if your business does enough volume of business qualifying purchases to make the switch financially viable.

Keep reading if you agree and are having trouble switching your Amazon Business account back to a personal Amazon Prime account. 

Is Amazon Business Worth It?

Amazon Business should be worth it for small to mid-size business that have the need to make workplace procurement easier with convenient delivery options, simplified purchasing workflows, multiple payment options, and a competitive marketplace with business-only pricing and quantity discounts.

Anyone who makes purchases for work (eg. procurement specialists, office administration, IT departments, etc.) can create a free account for their business. Customer must be from a verified business in order to successfully create their Amazon Business account.

 

Why I Decided Amazon Business Was Not A Fit For Me

  • With Amazon Business, you cannot participate in Subscribe&Save where you can save up to 15% off your order for recurring household essentials, think everything from diapers to razors.

 

  • With Amazon Business, you do not get the option of FREE No-Rush Shipping where you can receive $1 credit towards digital items, which is nice if you don't need the item you ordered immediately. Look for this option when you check out.

 

 

  • And lastly, I didn't receive any “price savings” that I noticed.  I buy too many personal items, and not enough business supplies…

I gave the Amazon Business account a try for a few months, and all I wanted back was my Amazon Prime personal account!

Changing Amazon Business account back to personal Prime

So how do change your Amazon Business account back to an Amazon Personal account?

They don't make it easy, but that's what I'm sharing this link with you. You're welcome.

I would love to hear if any of you actually prefer a business account and why if so.

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AR

Friday 28th of May 2021

I haven't thought of the limited perks as compared to personal accounts. But seems you are spot on.

However, my prime is linked from my spouse's prime, and the prime video still works with my app even with the business account activated. I do not get the subscribe and save options, but did not like that anyway. Some or a lot of S&S items were found to be cheaper at local Walmart or box stores. Other than a few on line only specialties, I quit S&S.

The biggest advantage for the business account are bulk orders, tax exempts, expenditure analysis, business only discounts, team purchases etc (when applicable, respectively).

Biggie issue with the business account is lack of privacy. I feel like the big Amazon is looking into my business and connect that with my private purchases. For instance, if you buy diapers, condoms, hunting knife, thong, cowboy hat, ropes, tea bags ... these are private purchases but Amazon may think you have a business run by a pervert, let alone seen by your office/coworkers too if you have them using it.

Thanks for this post!

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