Amazon has started a service that connects shoppers to local handymen. The service is called Amazon Local Services. The e-commerce giant has introduced the service in three cities aimed at connecting customers to local service providers such as plumbers and electricians.
Where the Service is Available
Amazon users in New York, Los Angeles, and Seattle will see the offers after purchasing items such as car stereos, air conditioners, or any items that may require installation. Customers can add the services to their shopping cart before they check out.
Goals
Amazon is trying to better compete with brick-and-mortar stores, which account for 90% of retail sales. Other similar efforts to compete with retail have included initiatives to speed deliveries and a recently released credit-card reader.
Hurdles and Competitors
Listing services take years to build a roster of service providers and Amazon is entering a crowded marketplace that is filled with established competitors. Some major competitors include: Yelp, Angie’s List, and Craigslist. There are many start-ups who are gaining momentum such as Thumbtack. Groupon also recently rolled out a listing service.
Amazon Local Services Value Proposition
Amazon will set itself apart by offering a money back guarantee on services rendered by its contractor partners. Amazon plans on conducting background checks on the businesses and will determine if they have liability insurance. On their website, Amazon will display reviews of the professionals from its customers and in turn, the service providers will be able to create profile pages. On their profiles, service providers can provide additional information about their businesses and they will have a scheduling feature to help customers book appointments.
Future and Expansion
Amazon hopes to expand the test service to include fitness instructors, music teachers, and other service providers. If the test is determined a success, the service will be expanded into other cities. This service will take time and many resources to grow. Amazon hopes that this service will help them gain ground against retailers.
We would like to thank The Wall Street Journal for their informative article on Amazon Local Services.