How Amazon’s Business Discount Manager Tool Works

Recently, Amazon announced the new Business Discounts Manager Tool which is available in Vendor Central.

To navigate to the new tool, hover over “Merchandising” and choose “Business Discounts” then click the “Business Discount Manager Tool” button towards the left.

It's designed to improve and simplify the process of creating Business Discounts by allowing Brands to upload in bulk without having to use Excel. It allows you to set discounts on the Brand or Vendor code level. Amazon encourages Vendors to create Business discounts on all products to maximize potential sales volume.

What are business discounts?

Vendors and Sellers can offer special discounts to Business Customers. There are three types of discounts that you can offer to Business Customers:

1. Progressive Discounts
2. Single Unit Discounts
3. Quantity Discounts

Read Amazon’s help page for more details.

Which customers qualify? 

Any order placed by a Business Account, which are typically owned by companies, and not individual customers. Because it’s a company placing the order, it’s more likely that items will be ordered in bulk quantities. To encourage that, you can set business discounts using the Business Discounts Manager tool as discussed above.

How does the tool improve the process?

It allows Vendors to quickly create discounts for business customers saving time and money, and in turn gaining sales. The tool is located within the Business Discounts page in Vendor Central. To access the tool, click on the Business Discounts Manager button as shown below:

You can create two types of discounts using the tool:

1. Quantity Discount: This discount is offered to all Business Customers who make a high unit purchase volume purchase on one or more products (when purchased at once).
2. Single Unit Discount: This discount is offered to all Business Customers and gets applied to orders of one or more units of a single product (when purchased at once).

How do I know if creating business discounts is right for my brand?

It varies from business to business and depends on the product that you are selling. If you sell a product that could be purchased in larger quantities by businesses, it may make sense to offer quantity discounts to entice the buyer.

We recommend testing discounts on products that make financial sense before determining the ideal scenario for your business. In some cases, especially for product-types that are often purchased in bulk (for example: pens, toilet paper, cleaning supplies), you might find that you’re increasing your sales and profit by offering discounts to Business Customers who are purchasing in bulk, and creating a repeat customer in doing so.

With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team. 

For more updates on marketplaces, visit our full Marketplace Updates content gallery.