I noticed an odd – but interesting – new category listing on Amazon recently: Amazon Home Services. There, you could order a variety of home improvement and repair services, such as faucet installation, sink replacement, thermostat installation, power outlet relocation, water heater leak repair, and many more – in the same way that you can order tools, supplies, electronics, and anything else Amazon already sells.
There are few services currently available in my area, but that is likely to change as more contractors, private companies, and self-employed tradesmen jump on board.
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As of now, there is already a wide range of in-store and in-home services that customers can shop for. You can see the full list here, although not all of those options are available yet. That’s the “selling services” portal for interested service providers.
If you’re a homeowner, this should simplify the research and hiring process. Amazon says that top-notch professionals and companies are only included in the program by invitation only, and they are also offering a “happiness guarantee” where they’ll stand behind the services provided by their handpicked pros.
You don’t have to be a homeowner to take advantage of the new program either. Some of Amazon’s proposed services include auto and bike work, computer and electronics work, TV and home entertainment setup, and things like that. They even have listings for at-home math, yoga, and music lessons.
And if you buy any $99+ service by April 13th, 2015, Amazon will throw in a $20 gift card. Seems like they want to really drive interest to the new program.
If you’re a contractor, this could present an interesting opportunity for seeking out more business. It looks like there are a couple of hoops to jump through, but nothing major. To apply for an invite, there’s a questionnaire where they ask for your basic business info, and there’s also a required field for 3rd party reviews such as on Yelp or HomeAdvisor.
Service Categories
- Apparel and Jewelry
- Automotive
- Bicycle Services
- Business Services
- Consumer Electronic Services
- Education and Classes
- Event Services
- Health and Beauty
- Home Improvement
- Home Services
- Motorcycle Services
- Performance Artist
- Pet Services
- Professional Services
- Yard Services
- Other
What do you think? Is this a great development, or a plan that’s bound to flounder?
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If you ask me, this has great potential, but the program’s success is going to be largely dependent on Amazon being able to sign up enough professional service providers nationwide. Right now, there are only a handful of services available in my zip code, with most being provided by the same company.
Amazon has had many other trial programs in the past, such as a contractor supply shop where they once offered limited building supplies and a jobsite delivery option. Now, that program seemed to morph into something simpler where it’s just another way to invite you to sign up for a business account.
Promo video:
https://www.youtube.com/watch?v=egcSmgGsco4
Dave L.
An interesting idea. Looking at locksmithing services, the prices and specs seem a little odd. They don’t offer much room for variation, either.
Stan
“If you’re a homeowner, this should simply the research and hiring process.”
Not trying to be rude, but wouldn’t the term simplify make more sense in this instance?
Stuart
Thanks!
Stan
I can’t stress this enough, I am not trying to be one of those people that always corrects the grammar of others. You are welcome.
Stuart
I do appreciate it. =)
Michael
Sounds like this will work best in large areas with a lot of competition
Kent
Amazon has really good customer service, in my experience. If they can select and guarantee the workers, and users can rate them, I think this could be a good deal for everybody. I assume Amazon will take a cut (5%, 10%, ???).
As a repair guy, Amazon finds you customers and jobs.
As a customer, Amazon finds good, reliable people to fix your stuff.
Dave L.
Some service companies may not like the idea of prices being fixed by someone else, partly because prices can vary by location. Also, how much Amazon wants as their cut will be a large factor. Finally, they already have lots of competition from Annie’s List.
mike
As a carpenter and handyman in New York City I have been contacted by Amazon multiple times asking me to join their ‘service’. Let me point out 2 of the major conditions Amazon wants all tradesman to agree upon: 1) Amazon takes a whopping 20% of all invoices for the privilege of being listed with them. 2) Amazon does all the billing and the trades don’t get paid for at least 10 working days AFTER amazon is paid; think of the total monthly materials costs that will add up. The 20% alone set me off.
Dave L.
Yeah, that’d do it. And you can’t raise prices to cover it if it makes you uncompetitive in your area.
Walty
Don’t forget the monthly service fee that is waived until the end of the year… Wonder how much that will be. Then add on the background check, per employee. The 20% kills my margins, let alone all the fees they will charge.
Plus, they want to break out sales tax seperately which is illegal in my state. Contractor cannot not charge seperately for sales taxes but can roll them into the total invoice price, which increases the amount that Amazon takes.
Sounds like a great business plan, for Amazon.
ktash
I tried Annie’s List and was not impressed for my area. Not worth it unless you live in a major metro area then it probably works well.
The terms don’t sound favorable to the tradespeople and I’m not in favor of hiring anyone when the conditions are not favorable to them. Amazon’s model works for books because it is a much smaller percentage that they take.
That said, it would be great to have someone guarantee the work and also to have the reviews. The reviews would have to be from verified customers because some amazon reviews seem off like the posts are from interested parties.
Is Amazon trying to take over everything? 😉
I do buy from them, though.
Brian
NO!
As a physician, who’s whole profession is being torn apart by third party payers, let me warn everyone against the middle-man-model. Insurance companies are making a killing, and this feels like the exact same thing. Should this follow the same path as modern day health “insurance”, tradesmen will eventually realize they work for Amazon, not the customer, are laden with irrelevant responsibilities mandated by your new employer, will be powerless to change, can longer compete on price (which Amazon will set), and will still retain full liability.
Ugh. Thanks for letting me rant 🙂 I get the heebie jeebies reading about payment models like this.
Corey
I just left some feedback for them. I was looking at some services we provide to compare them to Amazon’s program and none of the permitted services offered mention permits. The estimate for installation of a tankless water heater was $520 for a customer supplied one. From first hand experience, 2/5 of that should be permit costs alone. And in my area, we’ve known customers who’ve been hit with a $10k fine for unpermitted work. This leaves about $300 for time and material to install a tankless water heater in a new application. So that leaves about an hour to do the work, and provide the ancillary materials. Or they don’t pull the permit and hope the homeowner doesn’t get nailed for unpermitted work.
This idea is going to go poorly for the homeowners.
Michelle
BEWARE!!!
Amazon, through a Florida-based cleaning company, sent two inexperienced men to our home, and they mutilated a brand new, professional-level basketball hoop.
Happiness Guarantee???
This is a NIGHTMARE!!!
The claims process is a nightmare!