Amazon Launches Marketplace For Home and Automotive Services

Amazon is a leader of online retailing, but its website is not known as a place where consumers would go to fix a broken down car or a home electrical problem. Well, Amazon plans to change that with the launch of Amazon Home Services, which provides the ability to order a wide range of professionals to come to your home, from an auto mechanic to a plumber, and even in unusual niches such as an aerial yoga instructor or a goat grazer.

Amazon’s new service includes more than 2 million listings across 700 different types of businesses, and features up-front pricing. The professionals are all hand-picked by Amazon and come with what the company calls a “Happiness Guarantee”, by which the company says it will work with the customers and the professionals to ensure that the work is done well, and will provide a refund if it’s not.

Although the company already launched its “Local Services” program last December, Amazon spokesperson Erik Fairleigh explained that this previously existing program is more like Groupon, providing local deals and discounts, while the new Home Services is an expansive offering to provide consumers with professional services in a wide range of fields. The addition of Home Services puts Amazon in competition with other companies that connect customers to services based on ratings, such as Yelp and Angie’s List.

The new initiative illustrates Amazon’s latest effort to make sure that its customers never have to leave its website. The idea is that once a consumer makes a purchase on Amazon, they can find the related services that they need right there. Additionally, the company is attempting to position itself as a place to find professionals in all categories, even when a product isn’t being purchased at the same time.

To use the service, consumers enter their ZIP code at amazon.com/services to browse through the vast number of categories, including automotive, computers and electronics, lessons and home improvement. Amazon explains that the company runs background checks before listing a professional, to ensure high quality and trustworthy choices for its customers. Service providers can apply to list their services, and they can set their own prices in order to remain competitive in their local area.

The automotive services section is large, featuring a range of services, including installation of tires, car alarms, car stereos and trailer hitches, to wiper blade and brake pad replacements, as well as wheel alignment, auto detailing and much more.

“It’s the next natural extension for Amazon to move into home services,” said Amazon Marketplace Vice President Peter Faricy. He explained that Home Services will run in a similar way to Amazon’s marketplace for physical goods, as service providers will compete for top billing in each category based on price, ratings and other factors. Amazon takes a cut of between 10%-20% on each service that is arranged through its site, depending on the type. Recurring services, such as house cleaners, are on the lower end of the range, based on the fact that Amazon can expect higher transaction volumes in these scenarios.

Currently, Amazon Home Services is available across the country in major areas, including New York City, Los Angeles, San Francisco, Seattle and others. It’s too early to tell how successful this venture will be for the company, but if it is able to expand the available services quickly into new regions while offering competitive prices and trusted professionals, Home Services may prove to become a popular choice for consumers in the coming period.