Business as Usual Just Got Better: Amazon Announces Business Prime Rewards and Discounted Business Prime Membership

Rhea-AI Summary

Amazon Business (NASDAQ: AMZN) has announced Business Prime Rewards and a significant discount on Business Prime Essentials membership. The new rewards program allows Business Prime members to earn up to $1,000 annually on qualifying purchases and up to 2% cash back on Amazon Private Brands purchases.

New customers and existing Business Prime Duo members can now upgrade to a Business Prime Essentials membership for only $9.99 in their first year, a nearly 95% discount. Prime members can open a Business Prime account for free and start earning rewards immediately.

The Business Prime Rewards program offers points that can be redeemed on future purchases, with 100 points equaling $1. Rewards expire after 12 months and cannot be used for digital items or gift cards. Amazon Business aims to support small and medium-sized businesses with this initiative, providing them with unmatched selection, deep discounts, and smart capabilities.

Positive

• Introduction of Business Prime Rewards program, allowing members to earn up to $1,000 annually on qualifying purchases
• Up to 2% cash back on Amazon Private Brands purchases for Business Prime members
• Significant discount (95%) on Business Prime Essentials membership, offered at $9.99 for the first year
• Free Business Prime account for existing Prime members
• Amazon Business drives more than $35B in annualized gross sales
• Amazon Business has over 6 million customers worldwide, including 96 of the Fortune 100 companies

Negative

• Rewards points expire after 12 months
• Rewards cannot be redeemed on digital items or gift cards

Insights

Financial Analyst

Amazon's introduction of Business Prime Rewards and discounted Business Prime memberships is a strategic move to enhance its B2B offerings. The program allows businesses to earn up to $1,000 annually in rewards and 2% cash back on Amazon Private Brands purchases. This initiative could significantly boost Amazon Business's customer acquisition and retention rates.

The nearly 95% discount on Business Prime Essentials membership, priced at just $9.99 for the first year, is an aggressive push to expand the user base. This pricing strategy could lead to a substantial increase in Business Prime subscribers, potentially driving higher transaction volumes and loyalty.

With Amazon Business generating over $35 billion in annualized gross sales and serving 6 million customers worldwide, including 96 of the Fortune 100 companies, this new rewards program could further solidify Amazon's position in the B2B e-commerce market. The move may also help Amazon capture a larger share of small and medium-sized business spending, a important growth segment.

Market Research Analyst

Amazon's Business Prime Rewards program is a calculated response to customer demand and market trends in the B2B e-commerce sector. By offering rewards and discounts, Amazon is addressing the price sensitivity of small and medium-sized businesses while fostering loyalty.

The program's structure, including the $1,000 annual reward cap and 2% cashback on private label purchases, is designed to encourage increased spending and shift purchases towards Amazon's own brands. This could potentially improve Amazon's profit margins in the long term.

The heavily discounted Business Prime Essentials membership at $9.99 for the first year is likely to drive rapid adoption, creating a larger ecosystem of business customers. This strategy could help Amazon Business compete more effectively against specialized B2B platforms and traditional suppliers, potentially reshaping the competitive landscape of business procurement.

To provide even more value to members, Business Prime now offers Business Prime Rewards—Business Prime members can now earn up to $1,000 in annual rewards to use on future purchases and up to 2% cash back on Amazon Private Brands purchases

With a nearly 95% membership fee discount, new customers and Prime members who already have a Business Prime Duo membership can now upgrade to a Business Prime Essentials membership for only $9.99 their first year

Prime members looking to shop on Amazon Business can open a Business Prime account for free and start earning rewards now

SEATTLE--(BUSINESS WIRE)-- Amazon Business, (NASDAQ: AMZN), the company’s online business buying store, today announced Business Prime Rewards and a big discount to Business Prime Essentials membership. Business Prime Rewards is an exclusive benefit for Business Prime members giving business buyers the option to earn up to $1,000 annually on qualifying purchases while shopping on Amazon Business. Amazon Business customers with a personal Prime membership can access the first tier of Business Prime membership for free, or upgrade to the next tier for just $9.99 in their first year, at a discount of nearly 95%. New Business Prime members can also take advantage of this discount.

“From the neighborhood cafe to the local firehouse, small and medium-sized businesses are the heart of communities across the country and Amazon Business is committed to championing their growth through our unmatched selection, deep discounts and rewards, and smart capabilities,” said Todd Heimes, vice president of Amazon Business. “Our customers have been asking for a rewards program, and we’ve listened. Business Prime Rewards gives these entrepreneurs money back just for doing their usual business shopping.”

Adding More Value to Business Prime with Business Prime Rewards

Business Prime Rewards is a must-have for small-to-medium sized business owners looking to save on time and money in a convenient and easy way. The program gives businesses the option to earn up to $1,000 each year from their Amazon Business purchases and then redeem those rewards on future purchases during checkout. Customers can apply their rewards as a payment method and the value of their available points (100 points = $1) will be deducted from their order balance. Rewards points expire 12 months after they're issued and they cannot be redeemed on digital items or gift cards. Members can easily keep track of available offers, their points balance, and their rewards history in their Business Prime Rewards dashboard.

Soft-launched earlier this year and available as an exclusive benefit for Business Prime Duo or Business Prime Essentials members in the U.S., the program continues to expand how customers can earn rewards. Members can take advantage of earning through special offers, like trying a new feature or adding a user to their account. Most recently, Business Prime Rewards rolled out a new way to earn with 2% back on Amazon private label brands like Amazon Essentials.

Big Discounts on Business Prime Memberships

Helping business buyers save even more, Amazon Business is introducing discounts on Business Prime memberships. To start, Amazon Business is offering an introductory discount for Business Prime Essentials. New members can receive an Essentials membership for $9.99 their first year—which is nearly a 95% discount from the annual membership fee of $179 per year. Existing Business Prime Duo members can also take advantage of this discount and upgrade their membership for the same price. Duo membership for Business Prime remains free for any Amazon Business customer with a Prime account. These discounts make the benefits of Business Prime, including competitive pricing, business-only selection, and smart purchasing tools, more accessible to growing companies. The added benefits of Essentials will also give customers access to more ways to earn rewards.

• Business Prime Duo is a single-user plan that offers fast, free business delivery options, convenient business shipping, free survey and analytics tools, and 5% Back or 90 Day Terms for eligible customers
• Business Prime Essentials allows account-holders to add up to 3 users, and includes everything that Duo offers plus Spend Visibility and Guided Buying. New Essentials members can quickly earn rewards just by adding more uses to their account, or by setting up a Guided Buying strategy.

Supporting Small Business Growth with Unmatched Selection, Big Discounts, and Tools

Business Prime and Business Prime Rewards are part of Amazon Business’ broader commitment to fueling the growth of small to medium sized businesses. Amazon Business aims to provide entrepreneurs with an expansive selection of products, deep discounts, and user-friendly tools for entrepreneurs. With the new Business Prime Rewards program, and established programs like the Small Business Success Studio, an on-demand, immersive learning experience for small business owners that offers a collection of engaging educational and instructional materials to help their business grow and prosper. Earlier this year, Amazon Business also awarded 15 small business owners with grants totaling $250,000 through the Small Business Grant program.

Amazon Business makes business buying simpler by offering the same easy-to-use experience customers know and love from Amazon. Since launching in the U.S. in 2015, Amazon Business has empowered businesses of all sizes through unmatched selection, deep discounts, and smart capabilities. Amazon drives more than $35B in annualized gross sales and has more than 6 million customers worldwide including 96 of the Fortune 100, 66 of the FTSE 100, and 37 of the DAX-40 companies. Working closely with customers to understand their business buying challenges, Amazon Business continues to develop new technologies that make it easy for organizations and administrators to define, meet, and proactively measure progress toward their purchasing budgets and goals. Amazon Business is now a strategic partner to businesses in 10 countries including Canada, France, Germany, India, Italy, Japan, Mexico, Spain, the United Kingdom, and the United States.

Visit the Amazon Business website to learn more or discover which Business Prime plan is right for you.

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 available in the United States, Canada, Mexico, the United Kingdom, Germany, France, Italy, Spain, Japan, and India. For more information, visit business.amazon.com, www.amazonbusinessblog.com, and @AmazonBusiness.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241002870090/en/

Amazon.com, Inc.

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FAQ

What is the new Business Prime Rewards program announced by Amazon (AMZN)?

Amazon's Business Prime Rewards is a new program allowing Business Prime members to earn up to $1,000 annually on qualifying purchases and up to 2% cash back on Amazon Private Brands purchases.

How much does the discounted Business Prime Essentials membership cost for the first year?

New customers and existing Business Prime Duo members can upgrade to Business Prime Essentials for $9.99 in their first year, which is a nearly 95% discount from the regular annual fee of $179.

When do Business Prime Rewards points expire for Amazon (AMZN) customers?

Business Prime Rewards points expire 12 months after they're issued for Amazon (AMZN) customers.

Can Amazon (AMZN) Business Prime Rewards be used to purchase digital items or gift cards?

No, Amazon (AMZN) Business Prime Rewards cannot be redeemed on digital items or gift cards.

What is the annualized gross sales figure for Amazon Business (AMZN)?

Amazon Business (AMZN) drives more than $35 billion in annualized gross sales.