Amazon makes huge play at office sector with new business model

Online commerce giant Amazon is today launching a new service in Australia targeting the multibillion-dollar business-to-business (B2B) market.

Amazon Business will offer small, medium and large companies office products, electronics, furniture and more, at what Amazon says will be competitive pricing.

Its launch comes as businesses stock up on supplies ahead of the new financial year.

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Amazon says its new division will offer a cheaper and simpler purchasing process through business-only pricing, quantity discounts on eligible products and dedicated customer support.

Companies will also be offered the choice of upgrading to Business Prime, which combines the shipping benefits Amazon Prime members enjoy with exclusive business features such as shared accounts and buying policies.

Lena Zak, Amazon Business Australia country manager, says the new service will ease the purchasing process for companies.

"We know that 78 per cent of SMBs (small to medium businesses) have had to implement cost-cutting measures over the past three years," she told 9News.com.au.

"As operating costs keep rising, Amazon Business can help take some of that pressure off by offering meaningful savings on everyday goods and supplies, along with the convenience and simplicity of our delivery experience."

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Australia is the eleventh country where Amazon Business has launched, following the US, Canada, France, Germany, India, Italy, Japan, Mexico, Spain and the UK.

Since its launch in 2015, it has driven about $35 billion in annualised gross sales and has more than 8 million customers worldwide.

The arrival of Amazon Business in Australia comes as new research conducted by YouGov and commissioned by Amazon Australia shows that the cost of doing business has increased for 92 per cent of Australian SMBs over the past three years. The research found rising operating costs are the biggest concern for 79 per cent of SMBs.