Taking advantage of the Amazon Amendment – part of a government directive to allow federal procurement agencies to source products through an “online marketplace” – Amazon – requires a little extra thought beyond just saying, “federal agencies, here we are!” The Upstart Group can offer some insight into how to best succeed in this brave new world.

The Amazon Amendment, part of a government appropriations bill signed in December 2017, instructs the GSA allow federal agencies to source products through a “company that operates online portals,” in other words, Amazon. With federal procurement spending approaching $500 billion annually, that means companies large and small now have equal access to sell in this arena.

A key point to look at is how you structure bulk pricing. This can be especially important to a federal procurement officer. With over two million federal employees in the workforce, just imagine the annual quantities necessary to keep them up and running. Now consider disposable items, like paper goods, and the scope grows exponentially. At this scale, bulk pricing is the price of entry. 

But what constitutes a fair price? At what quantities should you offer discounts? What are your competitors doing? How can you tailor your offering to become the provider of choice to a government agency? The Upstart Group can help with smart pricing strategies that balance competitiveness with profitability.

With billions of dollars in annual procurement spending across 55,000 distinct agencies, the federal government represents a marketplace of unparalleled size and opportunity. Are you ready to take advantage of the “Amazon Amendment?” 

Whether you are a long-time seller to federal government agencies or want to stake your position before it gets taken, now is the time to refresh your approach to this lucrative market. And if you’re not already onboarded onto the Amazon platform, we can help you get there quickly.Reach out to The Upstart Group today. #HustleUp!

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