Amazon's dominance of the retail world is creeping over to the business-to-business market, where it recently reached a milestone with its Amazon Business brand.
CNBC reports that the e-commerce giant has 300,000 corporate buyers registered on its online B2B selling platform, and it recently hit $1 billion in sales 12 years after purchasing B2B retailer SmallParts.com.
As CNBC notes, Amazon's dominance in this lucrative market could signal the demise of the middleman.
Companies who for years have supplied other companies with things like screws and fasteners now find themselves competing against the Amazon machine that is targeting the same market — with its ease of simple online ordering and fast shipping.
CNBC cites a recent Goldman Sachs communication for its clients that claimed some of Amazon's biggest competitors in this market — WW Grainger and Fastenal — charge higher prices for the same products Amazon sells.
B2B suppliers are being forced to rethink their strategies in the face of Amazon's growing impact.
Amazon has made strides to capture several markets, including grocery when it announced last month it would purchase Whole Foods for $13.7 billion. The company also sells ready-to-cook meals in select cities.
© 2024 Newsmax. All rights reserved.