Key benefits: Amazon Business Customers with Business Prime
What is Business Prime?
Business Prime is a paid membership programme that delivers business-specific features and benefits beyond the standard Amazon Business account. It includes enhanced access to features like Guided Buying, Spend Visibility, and fast, free delivery on eligible items.
What is the Forrester Consulting Total Economic Impact study?
In 2023, Amazon Business commissioned Forrester Consulting to produce a Total Economic Impact study that analyses the potential returns for customers with a Business Prime membership. The study is meant to give current and prospective customers visibility on the potential financial impact Business Prime could have on their business.
Forrester interviewed representatives from six global organisations and surveyed 219 respondents in North America and Europe with experience as Business Prime members. They compiled the results into a single composite organisation.
Key research statistics
- Return on investment 324%
- Net present value $311k
- Annual procurement time savings 1,420 hours
- Accelerated time to receive orders 41%
- Reduction in suppliers onboarded annually 12%
Before and after Business Prime
Procurement leaders involved in the study were asked to compare how they worked with vendors before and after implementing Business Prime. The research suggested after investing in Business Prime, interviewees gained better control over procurement and employee spending thanks to exclusive access to benefits like Guided Buying and Spend Visibility, which relieved managerial budget oversight.
This accelerated access to a wider variety of products which had a positive impact on employee productivity. They also avoided shipping costs and onboarded fewer suppliers after identifying those they could buy a variety of products from and in bulk more often. These tools streamlined the interviewees’ organisational ability to optimise their budgets and time spent on procurement.
Key findings - Quantified benefits
- Leverages spending insights to save upwards of 20% on product costs
- Saves thousands of dollars in shipping cost savings
- Recovers 15% of total spending generated by rogue buyers.
- Avoids time spent onboarding and managing suppliers totalling 700 hours per year
- Improved procure-to-pay process productivity by 25%
Key findings - Unquantified benefits
- Accelerated operations from faster shipping
- Better discoverability of preferred products
- Extended invoicing terms
The financial analysis found the composite organisation experiences benefits of $406,000 over three years versus costs of $96,000, adding up to a net present value (NPV) of $311,000 and an ROI of 324%.
Costs for the organisation
Three-year, risk-adjusted PV costs for the composite organisation include:
- Business Prime membership costs. The composite organisation pays for annual access to Business Prime.
- Business Prime implementation. The composite organisation registers as an Amazon Business customer and adopts Business Prime at the same time. The procurement team works to integrate Amazon Business with their e procurement solution. Implementation efforts take place over the course of a few weeks including time spent creating user profiles, permissions, and if purchases are registering correctly.
- Training costs. Procurement spends a short amount of time familiarising themselves with creating and leveraging Guided Buying policies and Spend Visibility dashboards.
The Total Economic Impact survey concluded a significant differential between the benefits and costs in the three-year financial summary. The data indicated $429K in benefits over the three years, compared to $102K in costs, leaving a cumulative benefit of $327K from Business Prime.
“There’s so much additional functionality within Business Prime we weren’t aware of. It has a lot of analytics and with our large quantity purchases, it can provide insight for us to build strategies around.” — Senior supply chain and business planning advisor, energy
Download The Total Economic Impact of Amazon Business with Business Prime study to learn more. Get the study.
