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Amazon Launches Home Services for its Customers

By March 31, 2015 June 26th, 2019 No Comments

Amazon Launches Home Services for its Customers 1

Amazon has unveiled its new marketplace focused on local service providers. It is expected to compete with Yelp and Google. Amazon Home will become an invite-only marketplace and each provider will be checked and verified before being invited. Amazon will also verify whether the reviews are genuine or not.

Home Services has a network of hundred of service providers offering a couple million services, and it is currently restricted to a handful of cities in the U.S.

The benefit of the new service is that it will help bring the services of workmen such as electricians, painters, plumbers and others for Amazon’s customers. The other types of services on offer include house cleaning, wall mounting of LCD/LED TVs, and even car repair and maintenance. It is delivering “services” through the internet in the true sense. The online retailer will support the quality of the services through genuine reviews and Happiness Guarantee.

The addition of home services into Amazon’s online portfolio will give it a big advantage in the services industry, which is growing at a fast pace in the U.S. According to estimates it is more than $630 billion in size.

According to Amazon Marketplace, annually customers spend almost 4 times more on the associated services than on the product itself. Amazon has over 85 million buyers who get products shipped to them that require installation or servicing. Amazon is planning to roll out the new home services throughout the U.S. It will be worthwhile to wait and see if the retail giant will also bring it to the U.K.

With home services, Amazon steps into a relatively newer world. So long it had been focused on directly selling products. Many others have tried bringing local services online but it has had been a tough challenge for them to generate profits.

Amazon’s direct competitors will include Angie’s List, Yelp, Craigslist, and even Lowe and Home Depot. The companies have made major investments for linking customers and local service providers.

Amazon attempts to stand out from the crowd by running background checks on the professionals before allowing them to become a part of its services network. The company also claims that it will match prices if a customer finds lower price offer on another website or directly from a professional. Service providers can expect to share up to 20% of their revenue with the retail giant.

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