Amazon Business Accelerates Expansion, Exceeding $35 Billion in Annualized Revenue

Amazon Business: A Rapidly Expanding Segment

Amazon Business, the e-commerce giant's dedicated platform for business customers, has demonstrated substantial growth, surpassing $35 billion in annualized sales. This milestone, first achieved in 2022, underscores the platform's accelerated expansion since its launch. Annualized sales have shown a consistent upward trajectory, growing from $10 billion in 2018 and $25 billion in 2021.

As of August 2025, Amazon Business serves more than 8 million organizations globally, a notable increase from 6 million customers in 2023. This customer base includes 97 of the Fortune 100 companies, highlighting its broad adoption across large enterprises. The platform's product selection has expanded by 25% year-over-year, with items from small business sellers increasing by nearly 80% globally, bringing the total product offerings to over 160 million items.

Market Opportunity and Analyst Projections

The strategic focus on the business-to-business sector positions Amazon within a vast and largely undigitized market. The U.S. B2B e-commerce market alone exceeds $2 trillion. Analysts view Amazon Business as a significant future revenue driver, with considerable upside potential.

Baird Equity Research analysts have projected that Amazon Business could reach $80 billion in sales volume by 2025. Similarly, Marketplace Pulse, an e-commerce intelligence firm, anticipates the platform could surpass $100 billion within the next five years. Andy Hoar, a leading authority on B2B commerce, suggests that Amazon's current B2B sales might be closer to $100 billion annually if purchases made on the regular consumer platform by businesses are factored in. Sucharita Kodali, an analyst with Forrester, echoed this sentiment, stating that the company has "a ton of room for growth" in its B2B operations.

Competitive Landscape and Strategic Advantages

The B2B procurement market is characterized by competition from established players such as Walmart, Costco, Sysco, Staples, and Office Depot. However, Amazon Business leverages Amazon's core strengths to differentiate itself. The platform positions itself as a strategic procurement partner, integrating Amazon's advanced technology, data analytics, and unparalleled logistics network to streamline supply chain and purchasing experiences. This is particularly relevant as businesses seek to consolidate suppliers and achieve cost efficiencies amidst macroeconomic pressures.

Amazon's substantial investment in expanding faster delivery services, including Fulfillment by Amazon (FBA), further solidifies its competitive moat. By 2025, FBA had processed 80 billion items, and same-day/next-day delivery capabilities extended to 67% of the U.S. population. The integration of artificial intelligence (AI) tools further strengthens this advantage, while the platform's ability to integrate small and medium-sized businesses (SMBs) into its ecosystem serves as an "unsung catalyst" for growth, providing them access to global markets and advanced logistics.

Broader Implications for Amazon and the B2B Sector

For Amazon (NASDAQ: AMZN), the aggressive expansion of its B2B segment offers a crucial avenue for diversified growth beyond its traditional e-commerce retail and Amazon Web Services (AWS) divisions. This could bolster investor confidence by showcasing additional engines for long-term revenue and profitability, further solidifying Amazon's market dominance and disrupting established B2B supply chains.

While B2B sales currently represent a smaller fraction of Amazon's overall annual revenue, which totaled $638 billion in 2024, they are viewed as an increasingly vital arena for growth. It is important to note that Amazon's stock has shown limited movement for much of 2025, contrasting with broader market gains. The company is directing significant capital expenditures, estimated at $100 billion in 2025, towards AI infrastructure and data centers, incurring short-term costs for long-term growth. Furthermore, Amazon faces ongoing antitrust challenges and competitive pressures, with AWS growth rates lagging some competitors in Q2 2025.

Looking Ahead

The trajectory of Amazon Business will be influenced by several key factors in the coming quarters. Continued digitization of the global procurement market is expected to fuel demand for efficient, technology-driven solutions. Amazon's ongoing investment in its logistics infrastructure, AI capabilities, and seller ecosystem will be critical in maintaining its competitive edge against both traditional B2B suppliers and emerging e-commerce platforms.

Investors will be closely monitoring the platform's sustained revenue growth and its contribution to Amazon's overall profitability. The ability of Amazon Business to further penetrate new industry verticals and geographic markets, alongside managing its growing scale and competitive dynamics, will be central to its long-term impact on Amazon's financial performance and the broader B2B procurement landscape.