Amazon deal will see cashback for Wigan council

Wigan Council’s coffers are set to receive a boost thanks to a ground-breaking £400m deal involving online retail giant Amazon.

Friday, 31st May 2019, 4:00 pm
Updated Friday, 31st May 2019, 5:00 pm
Simon Hill, managing director of YPO, which is partly owned by Wigan Council

The agreement between Amazon Business and YPO – one of the UK’s largest public sector buying organisations, whose owners include Wigan Council – will see the retailer supply goods and services to public sector bodies across the UK, including local authorities, emergency services, housing associations, multi-academy trusts and universities.

The four-year contract will allow public bodies to gain access to Amazon Business’ millions of products via a compliant purchasing route.

Also, by accessing Amazon Business via YPO, customers will earn income for the public purse with a percentage of each sale given back to the public sector, including Wigan Council.

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YPO’s managing director Simon Hill said: “We’re excited to launch a public sector route to Amazon Business for our customers.

The demand for innovative ways to buy better is one of the highest priorities for public sector organisations, and our new framework agreement represents a forward-thinking approach to public sector purchasing. It offers brand new benefits in a first for a public sector buying organisation in the UK.

“Our recent customer survey showed that 80 per cent of our customers already use Amazon, so this will give them an opportunity to complete their list of requirements through YPO, without fragmenting their spend and threatening the ‘one-stop-shop’ proposition.

“YPO will continue to sell its 30,000 products but many more business-related products will now be available, everything from agricultural supplies to medical equipment. “Customers will also benefit from an enhanced offer in terms of value as well as service, such as competitive prices and delivery accessed through a single YPO route.”

A further self-service Amazon Business offering for schools will follow later in the year.

Penny McGinty, assistant director for corporate contracts and assets at Wigan Council said: “We work closely with YPO on a number of different areas including energy, facilities management, catering and fleet.

“This brings us the benefits of getting the best value for our purchasing and a significant return due to the profit share from our membership. We look forward to continuing our partnership with them to help deliver services to our residents and make savings where possible.”