Small businesses consider cutting procurement costs

A recent research by Amazon Business with marketing agency Walker Sands in March 20-27, 2023 showed that one of the top priorities for buyers at small and mid-sized businesses is finding ways to reduce purchasing costs and stay within budget over the next 12 months amid inflation and the threat of a recession.

500 small business decision-makers in the United States in March were polled about their online purchasing patterns, the challenges and opportunities impacting purchasing processes, and the broader landscape for small businesses. All respondents were 18 years or older. All work in purchasing at a business making $25 million or less in annual revenue. 61% of respondents worked full-time, 7% part-time, and 32% were self-employed. Respondents could list more than one concern.

61% of respondents will look for ways to reduce the costs associated with B2B purchases over the coming year.

Staying within budget is a priority for 61% of respondents.

Top challenges (small business)

• High inflation (63%)
• Possible recession (39%)
• Supply chain disruptions (30%)

Key factor in growing businesses long-term

• Ability to easily find items (88%)
• Ability to find items within their price range (91%)

Buyers at small businesses are seeking ways to make the purchasing process more efficient, helping them find and purchase what they need faster and more easily to spur their companies’ long-term growth, according to the survey.

Todd Heimes, director and general manager of Amazon Business Worldwide points to the company’s use of artificial intelligence and machine learning technology as two ways the marketplace is helping small businesses purchase more efficiently and quickly find products within their price range.

Amazon Business is increasing the number of products with business-specific pricing and quantity discounts. It also offers subscriptions to help small and mid-sized businesses to receive discounts and grants to help small businesses grow.

Grants

This month, Amazon Business gives more than $250,000 in grants to eligible small businesses that purchase through its marketplace and have less than $1 million in annual revenue.

Amazon Business will select one grand-prize winner and a group of finalists and semifinalists to receive the grants and other benefits such as Business Prime memberships and Amazon devices. Applications are due by May 21; winners will be announced July 17.