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Amazon Business’ 2022 State of Business Procurement Report Highlights Opportunities in E-Procurement
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Amazon (NASDAQ: AMZN) has released the 2022 State of Business Procurement Report, revealing key trends in B2B procurement across commercial, education, government, nonprofit, and healthcare sectors. The report highlights that 91% of B2B buyers prefer online purchasing, and 58% require deliveries to personal residences. Additionally, 84% of buyers plan to increase spending with diverse-owned businesses, while 63% prioritize sustainability in purchasing. The report indicates a steady budget outlook for many buyers despite economic challenges.
Positive
91% of B2B buyers prefer online procurement.
84% of buyers plan to increase spending with diverse-owned businesses.
63% of B2B buyers prioritize sustainability in their procurement practices.
68% of buyers plan to make at least 40% of purchases online by year-end.
Negative
55% of buyers find it difficult to source sustainable suppliers.
The second annual study reveals strong interest in online procurement across commercial, education, government, nonprofit, and health care industries, along with increased focus on corporate social responsibility
SEATTLE--(BUSINESS WIRE)--
Amazon (NASDAQ: AMZN) – Amazon Business today released its second State of Business Procurement Report, which shares business-to-business (B2B) trends and new insights from U.S. procurement professionals across industries and organizations of every size. Amazon Business, launched in 2015, helps leaders digitize and automate procurement with powerful management controls and analytic tools—all within the familiar experience of Amazon. For the report, which examines the rapid transformation of B2B e-procurement in recent years, Amazon Business surveyed buyers who hold influential procurement roles across commercial, education, government, nonprofit, and health care industries in the U.S.
The report highlighted a number of trends, including:
91% of B2B buyers state a preference for online purchasing.
58% of B2B buyers now make purchases that have to be delivered directly to an employee’s personal residence, accommodating an increasingly distributed workforce as a result of the COVID-19 pandemic.
84% of B2B buyers say their organizations plan to increase how much money they spend with Black- or other diverse-owned businesses.
63% of B2B buyers say that improving sustainability in their purchasing practices is a top goal.
Increases from last year’s report indicate a continued prioritization of corporate social responsibility (CSR) objectives.
“Procurement professionals continue to contend with a variety of challenges in a rapidly evolving landscape. We’re constantly looking for opportunities to improve the buying experience for our customers, and our 2022 State of Business Procurement Report provides actionable insights to procurement strategies and serves to aid decision-makers as they continue their digital transformation journey,” said Aster Angagaw, vice president of commercial, public, and strategic sectors at Amazon Business. “We’re proud to equip buyers across industries, organizational sizes, and revenues with the tools needed to meet their business goals and improve operations.”
Amazon Business can help business buyers overcome common pain points like accessing a wider range of suppliers and managing distributed purchasing. Purchasing optimization solutions like purchase order and invoice, storage and sharing, approval workflows, expense management, guided buying capabilities, and replenishment solutions enable operational efficiencies across entire organizations, not just in procurement. Amazon Business’ Smart Business Buying solutions empower purchasers to get what they need, when they need it.
Business buyers maintain a preference for digital procurement, and distributed deliveries are becoming the standard
The COVID-19 pandemic accelerated digital transformation efforts in the procurement space, and the 2022 State of Business Procurement Report shows that the preference for digital is holding strong. In fact, 68% of buyers said they plan to make at least 40% or more of their purchases online by the end of the year—up from 56% of buyers in the 2021 B2B Evolution in E-Commerce Report. Additionally, only 2% of respondents this year said they purchase exclusively offline.
However, distributed purchasing and deliveries across more locations are becoming a standard part of procurement. Today, more than 1.7 million small and medium-sized businesses around the world sell in Amazon stores. According to this year’s report, supporting remote work is buyers’ third most important procurement goal, behind only purchasing with local businesses and those with sustainability-related certifications. Also, 46% of buyers are responsible for making purchases for multiple offices; of those, 24% are tasked with supporting offices in multiple countries.
Buyers are price-conscious, but increasing support for diverse-owned businesses and more-sustainable supplies is the main driver of purchasing decisions
Even as businesses are facing growing concerns related to inflation, supply chain disruptions, and economic downturn, investment continues in smart business buying. The report shows that the majority of B2B buyers’ budgets are increasing or holding steady over 2021, and only 22% of respondents expected a budgetary decrease this year.
However, while respondents said that cutting costs and increasing efficiency were the areas most important for overall improvement, three of the four most important procurement priorities center around contributing to organizational CSR goals, including supporting sustainable, diverse, and local businesses. The report found that 91% of buyers take seller certifications into consideration when purchasing. This mirrors consumer purchasing behavior, where decisions are increasingly made based on a buyer’s values.
Still, organizations face a particular challenge in achieving sustainability goals. While 69% of B2B buyers work at organizations that require an increase in purchases from sellers following sustainable practices, 55% of buyers with sustainability goals say it’s difficult to source suppliers that follow sustainable practices. This presents opportunities for buyers to further leverage seller certifications as part of their Smart Business Buying strategy, closing the gap on sustainability-focused goals.
Amazon Business’ State of Business Procurement Report methodology
Amazon Business surveyed 440 B2B buyers across the U.S. in April 2022 using an online survey platform. Respondents included full- and part-time employees across a range of job levels. Those commercial organizations made at least $250 million in annual revenue. Respondents work in the following sectors: commercial industries (240), health care (95), education (60), and government/nonprofit (45). All buyer respondents play an influential role in their organization’s procurement process. This report also references data from our 2021 B2B E-commerce in Evolution Report, which surveyed 250 B2B buyers of similar demographics between December 2020 and January 2021.
About Amazon Business
Amazon Business helps millions of customers worldwide—from small businesses, schools, hospitals, nonprofits, and government agencies to large enterprises with global operations—reshape their procurement with cost and time savings, greater productivity, and insightful purchasing analytics. Procurement and business leaders enjoy convenient shipping options on hundreds of millions of supplies across categories like office, IT, janitorial, food service, and professional medical supplies. Customers also have access to a variety of business-tailored features and benefits, including a curated site experience, Business Prime, business-only pricing and selection, single- or multi-user business accounts, approvals workflow, purchasing system integrations, payment solutions, tax exemptions, and dedicated customer support. Amazon Business is currently available in the United States, Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, and India. For more information, visit business.amazon.com, www.amazonbusinessblog.com, and @AmazonBusiness.
What are the key findings of Amazon's 2022 State of Business Procurement Report?
The report shows high preferences for online purchasing, with 91% of B2B buyers opting for digital procurement and 84% planning to spend more on diverse-owned businesses.
How does Amazon's report reflect changes in procurement practices post-COVID-19?
It highlights a shift to online purchasing, with 58% of buyers needing deliveries to personal residences, indicating adaptation to remote work.
What percentage of B2B buyers prioritize sustainability according to Amazon's report?
According to the report, 63% of B2B buyers prioritize sustainability in their purchasing decisions.
When was Amazon's 2022 State of Business Procurement Report released?
