B2B sales were a real surprise and they just keep growing
Stephan Harpeng
Assistant CEO and Quality Manager, TIGA-MED
TIGA-MED, based in Eastern Thuringia (Germany), used to sell medical supplies and disposable products to hospitals and nursing homes — exclusively offline. However, they noticed that there was significant demand for such products outside of professional care services (among private buyers, gloves for the catering industry, etc.), which is why, in 2012, the business decided to offer medical products at reasonable prices to a very wide and diverse range of online customers. Their online channel has seen significant growth in recent years and now accounts for around 50% of their business. Amazon is the largest online marketplace that the business uses.
The COVID pandemic was a challenging time for the medical products industry, as supply chains were struggling with disruptions and lead times became very long. Meanwhile, demand reached an unexpected peak, which could not be met. This caused major problems for B2B customers in particular, as business customers place a great deal of importance on the constant availability of products and are reluctant to switch to other manufacturers. But the industry has now recovered and supply chains are working as they did before the pandemic.
The COVID pandemic was a challenging time for the medical products industry, as supply chains were struggling with disruptions and lead times became very long. Meanwhile, demand reached an unexpected peak, which could not be met. This caused major problems for B2B customers in particular, as business customers place a great deal of importance on the constant availability of products and are reluctant to switch to other manufacturers. But the industry has now recovered and supply chains are working as they did before the pandemic.
How we reach many new customers with Amazon Business
To start with, the business viewed Amazon purely as a B2C marketplace, but then noticed that B2B demand was rising sharply and customers such as medical practices, outpatient care services and retirement homes were shopping on Amazon. “That came as a real surprise to us”. TIGA-MED is now using Amazon Business to sell to numerous B2B customers in the catering and building management sectors. Stephan Harpeng, Assistant CEO and Quality Manager at TIGA-MED, reports that the share of B2B business on Amazon is currently sitting at 20%: “20% is actually much more than we expected, and the B2B segment is growing rapidly and steadily”.
What particularly fascinates Stephan about Amazon Business is the fact that B2B customers “can search for products on Amazon in the same simple way that they are accustomed to — and under favourable conditions. With the business offers, B2B customers can cover their needs very well and just as easily as if they were making a private purchase on Amazon. This makes it very attractive for customers and it is therefore a very good market for us”. He also notes that you can earn the loyalty of business customers on Amazon Business: “The majority of our products are disposable products. So if we have good offers and the customer is satisfied with the product, it is very likely that they will buy the same product again as soon as the first delivery has been used up”.
TIGA-MED was originally a purely offline B2B business, but was able to significantly increase its turnover by selling to both B2C and B2B customers on Amazon.
What particularly fascinates Stephan about Amazon Business is the fact that B2B customers “can search for products on Amazon in the same simple way that they are accustomed to — and under favourable conditions. With the business offers, B2B customers can cover their needs very well and just as easily as if they were making a private purchase on Amazon. This makes it very attractive for customers and it is therefore a very good market for us”. He also notes that you can earn the loyalty of business customers on Amazon Business: “The majority of our products are disposable products. So if we have good offers and the customer is satisfied with the product, it is very likely that they will buy the same product again as soon as the first delivery has been used up”.
TIGA-MED was originally a purely offline B2B business, but was able to significantly increase its turnover by selling to both B2C and B2B customers on Amazon.
We have gained many new customers by selling on Amazon. We have been selling our products on Amazon for 11 years and are gaining a huge number of new customers every day.Stephan HarpengAssistant CEO and Quality Manager, TIGA-MED
Amazon Business gave us the tools we needed to increase our B2B orders
“Manage Quotes” was the first tool TIGA-MED used on Amazon Business. Thanks to their use of this tool, they have been receiving more and more enquiries from potential customers. “When we started adding business pricing and quantity discounts, we saw a sharp increase in our B2B sales”. Stephan estimates that B2B orders have increased by at least 40% since the business started using quantity discounts. “If I were to browse for a product myself, I would probably do the same: I know my quantities, I know my needs — so it's only natural that I would look for large quantities so that I can get better prices. I would describe business pricing and quantity discounts as the most effective tools for attracting B2B customers. Everyone is looking for offers, regardless of whether they are private or B2B customers,” he says. Stephan finds that quantity discounts are especially important for the medical sector, as the quantities are very high due to the high proportion of disposable products used. For the same reason, bulk packs are particularly useful in the medical sector.
TIGA-MED also appreciates the benefits of the VAT Calculation Service, which it uses through an external partner (VCS Lite version):
TIGA-MED also appreciates the benefits of the VAT Calculation Service, which it uses through an external partner (VCS Lite version):
since we are B2B customers on Amazon ourselves, we really appreciate it when invoices are available immediately after the goods have been shipped. Displaying prices without VAT is a great feature for B2B customers, as it means you don't have to calculate it yourself.
A pleasant experience with B2B customers
TIGA-MED provides some insights into its experiences with B2B customers: “There is less ‘resistance’ among B2B customers than among B2C customers. They know the product, they know what they want and they know how to use it. This is, of course, a huge advantage, as there are significantly fewer returns”. Stephan also notes that the feedback from transport companies regarding business customers is also more positive — more complete contact details, more precise delivery instructions. “Transport companies prefer business customers”.
Tip for sellers: Don't underestimate your B2B potential on Amazon
“I would recommend giving B2B customers a significant discount, as this leads to growth in B2B sales and B2B customers subsequently buy the same item again very quickly, as their demand is greater and more constant than in the B2C sector. As regards quantity discounts, it makes sense to base these on the quantity of products in the package or a shipping unit. This means that you can save on delivery costs yourself and the customer always receives full boxes, which are not as easily damaged during transport. So this benefits both sides: not only do you reduce the need for additional boxes, you also save on shipping costs,” says Stephan.
He highlights one thing in particular: “I think it’s important not to underestimate the potential share of B2B customers on Amazon. We did at first. We would never have thought that the share of B2B customers would increase so quickly. B2B customers appreciate a quick and pleasant shopping experience. If you have a good product and can meet the needs of B2B customers, you simply need to try it out. After all, you have nothing to lose, but a lot to gain”.
He highlights one thing in particular: “I think it’s important not to underestimate the potential share of B2B customers on Amazon. We did at first. We would never have thought that the share of B2B customers would increase so quickly. B2B customers appreciate a quick and pleasant shopping experience. If you have a good product and can meet the needs of B2B customers, you simply need to try it out. After all, you have nothing to lose, but a lot to gain”.
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