Amazon Look To Go After OZ Commercial Market With Rewards Program
Amazon is looking to become a major player in the Australian commercial B2b market a move that could hurt the likes of Officeworks, Bunnings, Winc, the former Staples JB Hi Fi commercial as well as Companies who sell vehicle, plumbing or electrical parts.
ChannelNews understands that Amazon has already scoped out the size and potential of the Australian B2b market as well as marketplace partners who have products that business, Government departments, schools and business are currently buying via either a retailer who delivers online or a pure online player.
The unlock key could well be an Amazon credit card which is currently being tested in the USA.
The key to the programs success is finding suppliers who will work with Amazon and are not concernered about the reaction of their current retailers.
In the USA the e-commerce giant has been in talks with banks including JPMorgan and Chase on a co-branded credit card for small-business owners who shop on its website claims Bloomberg.
, said the people, who asked not to be named discussing private negotiations. An Amazon spokesman declined to comment.
Amazon believes they can do to the commercial world what they did in the consumer market with their Prime service.
In October, the company launched in the USA a Prime membership program offering fast free delivery for businesses, which was seen as a way to grab market share from factory-equipment providers.
Amazon is hoping the new credit card, which will feature rewards points for purchases, will also let it eventually add offerings such as business insurance through a portal designed for its small-business customers, according to one of the people familiar with the matter.
Amazon could use customers’ transaction data to help tailor the rewards, this person said. The retailer has already lent $3 billion to more than 20,000 small businesses that sell via its marketplace in the U.S., U.K. and Japan.
In Australia a lot of small business use an Amex card to fund their business, Amazon is looking to replace this card.
American Express recently debuted retooled proprietary small-business cards as well as new co-branded offerings in the USA.
AmEx says it is the top card issuer for U.S. small businesses and that its portfolio is larger than its five nearest competitors combined.