Now that the B2B marketplace arm of Amazon.com Inc., Amazon Business, has reported this month that it has exceeded $25 billion in annualized gross merchandise sales volume, a Wall Street analyst is predicting not just big — but even more dominant — B2B ecommerce numbers from Amazon.
In a research note released earlier this week by Bank of America Securities, internet analyst Justin Post predicts that Amazon Business is on track to generate $31 billion in gross merchandise volume this year, including sales by Amazon itself and by third-party sellers. He also forecasts $83 billion in gross merchandise volume by 2025.
That would easily make Amazon Business Amazon’s fastest-growing business unit. “For 2025, we project $83 billion in GMV and $44 billion in revenue, representing five percent of Amazon’s total revenue,” he writes.
More important, Amazon Business is also moving quickly to solidify a position as the single most dominant global company in B2B ecommerce and become a major driver of Amazon stock. “If Amazon grows to eventually capture 10% of U.S. B2B ecommerce and 5% of international B2B ecommerce excluding China, we estimate Amazon could generate $400 billion in gross merchandise volume and $200 billion to $600 billion of incremental stock value,” Post says in his research note.
Bank of America cites several reasons why Amazon is well poised to dominant B2B ecommerce, including its massive number of sellers and fast delivery and fulfillment through Amazon Business Prime, among others. “Amazon appears to have gotten over many difficult hurdles in the B2B space (procurement systems, seller quality, delivery time), and now reaches over million customers (up from ‘over 1 million’ in 2018), including 80 of the Fortune 100 (up from 55 in 2018),” Post says.
“We think B2B has emerged as a key category and Amazon appears well-positioned with improving same-day fulfillment capabilities and an active competitive marketplace,” Post writes.
Other investment analysts have also projected exponential growth ahead for Amazon Business.
Rob Green, general manager for public sector at Amazon Business, will discuss online B2B selling strategies during the June 17, 2021, online event “Breaking Barriers to B2B Ecommerce Success” hosted by Digital Commerce 360.
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