Amazon Business grew at a compound annual rate of 25% for the last two years, according to Alexandre Gagnon, vice president of Amazon Business Worldwide.
To expand on that growth, Gagnon says the marketplace plans to enlarge sales of office supplies. The product category grew in recent years as the pandemic led companies to more purchasing online.
Gagnon, the top executive at Amazon Business, made his comments in an interview published by the Reuters news service and confirmed by an Amazon Business spokeswoman.
Gagnon said Amazon Business is improving logistics operations in Europe to make it more attractive for corporate-account customers to make bulk purchases of supplies ranging from desks and IT equipment to paper and printer ink. That provides Amazon the opportunity to reap higher margins compared with small-order retail consumer sales.
“Because businesses buy in larger quantities, the fulfillment economics are more advantageous,” Gagnon told Reuters.
Amazon Business entered the European market when it opened for business in Germany in 2016, followed by Great Britain in 2017. It also operates in France, Italy and Spain. The ecommerce company deals with such corporate clients as:
- Electrical equipment manufacturer ABB
- Renewable energy technology company Siemens Gamesa
- Energy technology engineering firm Centrica Business Solutions
When asked if Amazon Business intends to enter additional markets in Europe, the spokeswoman said the company “can’t comment on future plans.”