Amazon has unveiled a new platform called "Amazon Home Services," allowing consumers to search for professionals in various fields, such as home repair and furniture assembly. With 700 different search options, the company aims to dominate the market for local service professionals. This service is available to Amazon customers residing in select states, with a broad rollout already underway in the US, offering significant value.
Amazon’s new venture will compete directly with established players like Angie’s List, Yelp, and Craigslist. The primary distinction of Amazon Home Services is that customers can purchase services directly through the platform.
The Craigslist Factor
Craigslist has a dedicated community that often goes unnoticed. It features an "underground" culture where people exchange reviews, discuss ads, and engage with sellers. This community mirrors an amateur version of Angie’s List, but with a highly involved user base. This was an intentional approach by Craig Newmark, who expanded Craigslist from a small email list of friends to better understand his community. The concept has proven successful, as evidenced by the site’s minimal changes over the years.
The concept of local communities leveraging the web to influence purchasing habits has only grown in popularity.
Competitors
Yelp has experienced some negative publicity affecting its credibility, but Angie’s List remains popular. Amazon will face established competitors and industry leaders in this space.
Deployment
Amazon will initially offer its Home Services in 40 states, including major cities like New York, Seattle, Los Angeles, and San Francisco. Details on future expansions remain unclear, making this rollout somewhat of a beta test for what’s to come.
For now, professionals can only join Amazon Home Services through an invitation and must undergo background checks and hold insurance for job-related mishaps.
Strategic Move
This expansion is a logical step for Amazon, a giant in the retail industry known for affordable goods and fast shipping. Offering professional services complements its core retail business, providing a complete package for consumers ordering products requiring installation or assembly.
How it Works
Amazon provides reviews for services on its platform without requiring a membership. Anyone can read reviews or use a service. The services list estimates to help customers understand costs, and transactions take place directly on Amazon’s site. Estimated prices are available for several services.
What sets Amazon apart from platforms like Angie’s List is the ability to order a product and its associated service simultaneously. While Angie’s List offers information about service providers, Amazon offers the entire package.
Amazon also features a "Happiness Guarantee," which outlines how it handles customer disputes. Known for excellent customer service, Amazon will place significant pressure on service providers to meet high standards.
Impact on the Local Market
Service providers must consider how to integrate with this new opportunity. Amazon, despite some financial challenges, has shown significant growth and set high consumer expectations. This market shift could potentially create a new micro-economy of job seekers and handymen, or it might see existing major players from platforms like Angie’s List and Yelp taking the lead on Amazon as well.
There’s also the potential impact on search engine results; Google often prioritizes Amazon in its results for purchase-related queries. This could be a substantial competitive advantage for providers and sellers utilizing Amazon’s new services.
Image Credits
- Image #1: kurhan via Shutterstock
- Image #2: Monkey Business Images via Shutterstock
