GSAAdvantage vs. Amazon in new report

      A new report from the Navy shows some surprising differences in how federal agency buyers perceive pricing and policies on GSA Advantage vs. Amazon Business. GSA Advantage is the GSA’s online platform for buying from GSA’s Multiple-Award Schedules.

      The report found that GSA Advantage has lower prices on most commercial items (when bought in bulk), but many buyers perceive Amazon’s prices to be lower.

      It also shows that small businesses are well represented on GSA Advantage but not on Amazon’s online platform.

      The report “ shows that the Schedules program still is a relevant and viable channel,” Roger Waldron, president of the Coalition for Government Procurement, wrote in a recent column.

      The report was published by the Naval Postgraduate School. It was requested by the Air Force, which is considering using an Amazon online platform for micro-purchases.

      In the study, the authors gathered data, and also surveyed agency purchase card holders, to compare prices and policies for purchases of the top 60 commercial items bought by the Air Force using the government purchase cards.

      The report found:

• Prices were lower on GSA Advantage 80% of the time; however, each item had a minimum order requirement. Amazon did not have minimum order requirements.
• Shipping terms were better on GSA Advantage, averaging 5.45 days with free shipping vs. 9.25 days at an average cost of $2.33 on Amazon.
• All 60 items were available from at least one small business on GSA Advantage. Only 35% were available from a small business on Amazon.

      However, some of the findings did not favor GSA Advantage.

• Although data showed GSA’s prices to be lower, 58% of the buyers said Amazon was less expensive.
• 58% of the buyers said Amazon’s search engine was better and 57% said Amazon’s shipping was better.
• GSA’s minimum order requirements were viewed unfavorably, while Amazon’s product reviews were viewed favorably.

More information: Roger Waldron statement on Federal News Radio and link to report: http://goo.gl/hyYafu

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GSAAdvantage vs. Amazon in new report

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