US Amazon now sells DVDs, books and caustic soda

Small- and medium-size chemical distributors have discovered a new way to reach customers. The online retail giant has added more than 30,000 sellers with more than $1bn in sales in its first 12 months. Above, Seattle-based TRInternational has started selling some chemicals on the new B2B platform. (Source: TRI)

(Clarification: Repairs a misprint on the number of seller companies in the 19th paragraph.)

Focus article by Bill Bowen

HOUSTON (ICIS)–As every savvy buyer knows, Amazon.com has become a retailer of first resort for those looking for the quick purchase of a book, DVD or a gift for an office colleague.

It’s fast, easy and relatively painless.

But what you might not know is that the online retailer now has a B2B website where you can buy hand sanitizer dispensers, plastic pails, degreaser and bagged dry caustic soda in bulk discounts, if you are a volume buyer.

That’s right. Small- and medium-size chemical distributors have discovered a new way to reach existing and potential customers.

“I see this as another way to make a sales call,” said Megan Gluth-Bohan, president and general counsel for TRInternational, a mid-size chemical distributor based in Seattle, Washington, with 26 employees and annual sales of about $60m.

Amazon Business launched last year as a business-to-business (B2B) platform that allows registered businesses to shop for office, janitorial and even industrial goods online and get volume discounts.

Buyers using Amazon’s consumer website can also access the business site. But only registered businesses can utilise the bulk discount and other functions of the business site.

Amazon Business adds a layer to the site’s services that allows corporate procurement specialists to compare prices and availability almost instantly.

Multiple users, or multiple procurement officers at a single company, can use the site and track spending and budget guidelines.

“We envision the company that needs 100 laptops for the sales force or a small business that needs coffee for the break room or mops and pails,” said Colin Puckett, Amazon’s senior marketing manager for the B2B marketplace.

Amazon charges referral fees of 6-15% per sale and, in the core business site offers tiered fees on large volume orders to help sellers attract volume buyers and to be able to offer them significant discounts.

Business sellers also pay $39.99/month to access tools and services to help sellers manage their listings, inventories and orders through a “professional selling plan”.

For those costs, Gluth-Bohan can expose her products to hundreds of thousands, or even millions, of potential customers.

She has a favorite way to describe the arrangement: “Amazon owns the mall, but we still operate the store.”

Puckett said that not-for-profit organisations are also eligible and he highlighted that higher education institutions, such as colleges and universities, are a big expansion goal for Amazon.

Amazon manages the site and maintains the fulfillment software. But orders are handled and shipped by the Amazon Business supplier.

Other features of the site include identifying for buyers whether the seller is a veteran-owned, minority-owned or woman-owned business.

This is helpful for companies working on federal contracts that may require portions of acquisition be made through one of those types of sellers.

The site is adding thousands of buyers a month, Puckett said. So far, more than 30,000 seller companies have joined and the site posted more than $1bn in sales during its first 12 months, which ended in August.

“Today, we have sellers from all over the world,” Puckett said.

TRI’s Gluth-Bohan said Amazon representatives approached her about joining the site. Both companies are based in Seattle.

Gluth-Bohan said that TRI has listed only a few chemicals, ones that are safe and easily shipped. That includes bagged dry caustic soda and anhydrous citric acid and drummed propylene glycol.

 The company maintains the inventory and manages physical fulfillment.

“We maintain all control,” Gluth-Bohan said.

TRI offers a wide range of chemicals, including adhesives and sealants, inks and dyes, drilling and completion fluids, paints, coatings and various resins and polymers.

TRI gets much of its chemicals from Asia and has a sourcing office there.

The company distributes in the US and has six regional sales offices. It also conducts some export sales.

Gluth-Bohan said that she believes it’s only a matter of time before more chemical distributors and related companies are using online platforms such as Amazon Business.

“I think it’s just lack of awareness, so far,” she said.

INSET IMAGE: TRInternational, a chemical distributor based in Seattle, Washington, offers some items for sale on the new Amazon website. (Source: TRI)