Twenty years ago no one would have imagined Amazon as the Sears of the internet. Today Amazon sells everything from Protein Powder to Phones and Tattoo Kits to Toilet Seats. Here they grow again into the home services market. Amazon may not yet be ready to offer an in-home Dog Shampoo service but currently plumbing is just one of several offerings in their new Home and Business Services department.
Amazon: The Middleman
In this case Amazon became the digital middleman, brokering services and handling the financial transactions with the consumer. Now anyone with plumbing skills and certifications can start their own business without the need to accept credit cards. With Amazon superior shopping cart and amazing review engine, a home services offering would not only disrupt traditional plumbing and HVAC businesses but take a bite of out review sites such as Yelp and Angie’s List.
The Amazon Tax
Amazon takes a 15-20% premium to broker services. A big ask when the majority of home service businesses spend 5% and the recommended spend is 10%. This makes fixed budgets for Pay-per-Click advertising, website hosting, and SEO much more appealing.
If you are interested in getting in the game you can visit: https://services.amazon.com/selling-services