Online retailer Amazon. com is launching Amazon Business. It will be a new marketplace that will provide latex gloves, tractor parts, paper clips and millions of other products that required in hospitals, factories, schools and offices.

Now, Amazon is planning for a chunk of the $1 trillion that US companies spend yearly in business-to-business purchases. There is a possibility that Amazon Business may step up competition with rival marketplace EBay Inc.

"We want businesses to be able to buy what they need so they can quickly get back to work", said Prentis Wilson, Amazon's vice president of industrial and scientific supplies.

According to experts, the new marketplace is a revamp of Amazon Supply. In 2012, Amazon Supply was rolled out in order to sell over 500,000 products to customers in industrial and scientific areas. Presently, Amazon is opening service to involve over 2 million third-party sellers, and it is expanding inventory beyond what it might sell directly.

With Amazon Business, the company is looking to cater to clients like Tulsa Community College. Tulsa Community College uses Amazon to order test tubes, basketballs, office supplies and other goods in place of having employees fetch them from local retailers or specialty sellers.

A study by Acquity Group revealed that about 68% of business purchases were made on the Web last year and that is up from 57% the previous year. Amazon Business is going to be a marketplace that features over hundreds of millions of products. According to Amazon, Amazon Business is not going to have a membership program like Amazon Prime that is provided to consumers for a $99 annual fee.