Amazon and B2B sales

Amazon recently grabbed headlines worldwide when it demonstrated the use of a drone that can deliver products to homes. This futuristic piece of technology might be an integral part of Amazon’s supply chain years from now, but it is a project that Amazon is quietly pursuing that has a more immediate and disruptive impact. This effort, known as AmazonSupply, aims to disrupt B2B wholesale selling, replicating Amazon’s previous successes in disrupting B2C sales channels. Through AmazonSupply, Amazon will sell products in bulk to businesses. Many of these are industrial products that are not typically purchased by consumers. However, will Amazon be as successful with Amazon Supply? Here are two factors to consider:

1) Logistics and supply chain network – This is clearly in Amazon’s favor. Tapping the vast and efficient distribution network it has built over the years to support its traditional B2C selling, Amazon will be able to outperform many of its B2B competitors by delivering products faster and cheaper. 
2) Providing specialist technical support – AmazonSupply will supply everything from paint to electrical machinery to gummy bears. In contrast, many wholesalers and distributors sell only one product category and have been doing so for many years. This specialist knowledge gives these traditional firms a competitive advantage because they will be able to provide better product support compared to Amazon.