Amazon.com is launching a home services marketplace that will connect customers with electricians, plumbers and painters in a move to have its services tied to every product sold on its website.
Amazon Home Services, which will launch on Monday, will allow customers to buy 700 services such as car maintenance, TV wall-mounting and house cleaning at upfront prices. The quality of the service will be backed with an Amazon guarantee, which the retailer uses to vouch for products sold by third-party sellers on its website.
A home services marketplace will extend Amazon’s role as a middleman for third-party vendors, which account for about 40 percent of its sales. It would also help Amazon gain an edge in the fast-growing services industry in the U.S. which the retailer estimates to be around $630 billion (425 billion pounds).
Amazon will hand pick service professionals after running background checks and offer to match prices if customers get a lower price for the same service and professional on another site, store or directly from the professional within 30 days of a purchase, Faricy said.
Amazon Home Services will have a revenue share model with the service providers. The retailer will charge a 5 percent transaction fee, along with platform fees ranging from 10 per cent for custom services and 15 percent for standardized services.