Amazon Business launches in Australia to help cut SMB costs

Amazon Business has launched in Australia, aiming to provide more efficient procurement solutions for local organisations amid rising operating costs.

New research from YouGov, commissioned by Amazon Australia, indicates that 92 per cent of Australian small and medium businesses (SMBs) have seen increased costs of doing business over the past three years. The survey, which included 513 senior decision makers from SMBs with fewer than 200 employees, revealed operating expenses as the greatest concern for 79 per cent of respondents, with the cost of goods and products identified as the main contributor to this pressure.

The findings also show that over four in five (approximately 83 per cent) SMBs have passed these increased costs on to customers, raising prices by an average of 13 per cent. This situation has prompted 78 per cent of surveyed businesses to enact various cost-cutting measures.

New buying options

Amazon Business enters the Australian market as the eleventh country in its global rollout, following previous launches in Canada, France, Germany, India, Italy, Japan, Mexico, Spain, the United Kingdom, and the United States. The offering brings features tailored to organisational purchasing, such as business-only pricing, quantity discounts, single or multi-user accounts, and business-focused customer support.

Lena Zak, Amazon Business Australia Country Manager, commented on the launch:

"Amazon Australia is excited to support Australian businesses and organisations of all sizes with simplifying a critical aspect of their operations, so they can focus on what's most important to them: serving their own customers better, while growing their organisations.

"We know that 78 per cent of SMBs have had to implement cost-cutting measures over the past three years. As operating costs keep rising, Amazon Business can help take some of that pressure off by offering meaningful savings on everyday goods and supplies, along with the convenience and simplicity of our delivery experience.

"Amazon Australia has significantly invested in and expanded its operations network to enable a seamless, faster and more reliable shopping experience for customers, and we are thrilled to now be offering that to business customers. We know this will be particularly beneficial for the millions of SMBs who operate across the country."

Amazon Business's Australian offering covers products including office supplies, electronics, and furniture. The end-of-financial-year timing gives SMBs access to an expanded supply source as many businesses review their procurement needs.

Service features

Registered organisations can access a suite of features designed to simplify cost management and enforce purchasing policies. These include spending limits, approval workflows for authorising purchases, guided buying to steer staff towards preferred products, and multi-user accounts with role management. Participating customers can also obtain business invoices on a wide product range and identify more sustainable products through the Climate Pledge Friendly programme.

Business Prime membership grants organisations access to shared accounts, exclusive shipping options and procurement features, supporting streamlined processes and cost reduction. Verified new Amazon Business customers are eligible for a first-time purchase discount of 30 per cent, up to AUD $100, available until 30 June 2025.

Quantity discount options start from as few as two units of the same item, with potential savings of up to 20 per cent. Standard business pricing offers up to 10 per cent off hundreds of thousands of products compared to consumer pricing. These features are accompanied by dedicated customer support for business clients.

Benefit to sellers

The launch opens access for Australian selling partners to Amazon's B2B customer base by allowing sellers to list their product catalogues on the platform. Fulfilment by Amazon (FBA) remains available for merchants, with Amazon handling storage, packing, and shipping for business and consumer orders.

Majid Ali, Owner of Canberra-based business Posh Majestic, described the business impact:

"Selling on Amazon has been a great move for our business, connecting us with customers all over Australia."

"I'm really looking forward to what Amazon Business can do for my business as it will open up a whole new cohort of customers, meaning I can now reach business customers through Amazon. It makes things so much easier with simple tools to manage stock and track how we're doing. Our anti-fatigue mats are perfect for offices and workspaces, so being able to sell directly to businesses is a huge chance for us to grow."

Amazon Business began operating in the United States in 2015 and currently reports roughly USD $35 billion in annualised gross sales. Worldwide, it has more than eight million customers—including 96 of the Fortune 100, 66 of the FTSE 100, and 38 of the DAX-40 companies.

The YouGov research forms part of Amazon Business's strategy to identify and address procurement challenges faced by organisations, and the company indicated ongoing development of new technologies for business buyers.