Will Amazon Home Services be successful
What potential does Amazon Home Services hold?
Amazon Home Services is an online marketplace concept that combines services for everything to do with your own house and household, as well as hairdressing and cosmetic services, either individually or with purchased products. The format has been established for several years in the USA, Great Britain and the United Arab Emirates. Amazon Home Services Germany does not yet exist in this form.
Rumors of a possible start in Germany have not received much food from Amazon in recent years. Nevertheless, when in doubt it can go very quickly. Therefore, we would like to summarize everything you need to know about the Amazon service, especially for local service providers who may have previously advertised on other online marketplaces.
What is Amazon Home Services?
The idea was only logical: when the new television is ordered on Amazon or when it is time to do a major cleaning after the garden party, the fitter or cleaning lady can be ordered right away. In 2015 the platform “Amazon Home Services” was launched in the USA.
All kinds of services from the movers to the piano tuner to the goat herd, which can be used as an alternative to the lawn mower, were quickly represented. After a test phase, the project was expanded to include 30 urban areas with a total of one million services. The online marketplace does not send the service providers into the race themselves. Anyone from the region can advertise their offer on the platform.
It is also possible to link the service to the product purchased. For example, if the customer only orders a dishwasher, Amazon Home Services sends an email with a reference to the appropriate service. In addition to local, smaller companies, there is also cooperation with US chains such as the car repairers of the Pep Boys or the cable network operator Dish for everything to do with entertainment electronics.
Amazon Home Services now offers:
- Cleaning and plastering work
- Assembly of furniture
- Craft services
- Moving service
- Installation of smart home technology
- Hairdressing and cosmetic services
- car Care
- Animal care
Amazon can pay for the mediation with 10 to 20% of the final price.
The Amazon Service has these advantages and disadvantages
Shortly after the start of Home Service, Amazon recorded an increase in sales for all products related to home and garden, including the associated craftsmen. Obviously, thanks to the offer, many customers who had previously canceled the transaction decided to buy, because, for example, the fitter was missing. Now the customer can benefit from a service in which everything comes from a single source and saves the laborious search on site for a suitable craftsman or service provider. After all, 47% of Brits said they had no idea about home improvement. At the same time, the customer has the highest level of security, because there is the so-called happiness guarantee.
If something does not go as planned with the Amazon Home Service, the service can help:
1. The customer contacts Amazon.
2. Amazon contacts the provider and looks for a solution to optimize the service experience.
3. Damage is covered up to a value of $ 2,500.
According to official information from the online marketplace, sales increased by 20% monthly in the first year. What is profitable for the online giant also applies to the service providers. Several providers report that around three quarters of their orders come via Amazon Home Services. The greatest demand is for furniture and fitness equipment. The booking is open to everyone, but 95% of the goods were previously ordered from Amazon.
But where there is light, there is always shadow. With the platform, the service providers support Amazon in continuing to operate unrivaled in the global market and are making themselves increasingly dependent on online retailers.
Amazon Home Services - this is what the services look like
The Home Service offer is available in the USA, Great Britain and the United Arab Emirates. A look at the range of offers in the United Arab Emirates shows that all services relating to cleaning work are rated with 4.5 to 5 stars.
The basic price includes the following services:
- Dusting and cleaning inside the house
- Cleaning the kitchen, disposing of the garbage
- Changing the sheets and making the beds
- Cleaning the bathroom and toilet
- Cleaning the windows from the inside
The service provider brings all cleaning agents and devices. However, there is the possibility that existing equipment can be used. This must be stated in advance on the booking form, as well as the number of hours and cleaning staff required. Special requests are discussed separately with the provider, an additional charge may apply.
How can service providers participate in Amazon's home services?
Home Services in the USA are currently not accepting new applications from service providers. As rumored two years ago, Amazon was not satisfied with the quality of the work done. At that time it was said that Amazon would employ its own cleaning staff and no longer limit itself to the role of mediator. This may also be due to the competition, because various portals have emerged worldwide in recent years. The platform is much more lively in the United Arab Emirates and Great Britain.
If you want to become a service provider for Amazon Service, you have to meet the following requirements:
1. Offer and service quality must be transparent - Amazon researches the service provider online, conducts interviews and checks references.
2. The business background must also be on the table. In addition, a certificate of good conduct is required.
3. All providers must provide evidence of adequate insurance coverage and permits for their business.
4. The service providers are subject to constant quality controls and evaluations - not only by customers, but also by Amazon.
Amazon Home Services Germany - still a long way off?
The company has not yet published any plans to launch Amazon Home Services Germany. Should the Amazon service be launched on the German market, this would mean considerable competition for established online marketplaces and intermediary platforms.
So far, customers have still been able to use related services such as a construction and installation service for large devices. However, if you are looking for a professional for various jobs, you have to look around for other portals. An installation partner can be searched for on Werkprofi operated by Reuter - only trained specialist tradesmen are listed here. The professional can be contacted directly via the portal and comes to the desired date.
TaskRabbit, which has a partnership with IKEA, is more broadly positioned. There is assembly work, help with moving, shopping and deliveries as well as cleaning work. There is a total of 50 categories to choose from. If the task is selected, the address is used to search for a subservient ghost. TaskRabbit is now represented in some major German cities, anyone who wants to offer their service can easily register. 100% of the invoices plus tips remain with a service provider.
In any case, with or without Amazon Home Services Germany, it remains exciting to see how online retail will position itself in the future so that it can offer everything from a single source.
Jonathan Blümel is Content Manager at Pylot and regularly writes about trends, tips & tricks around the digitization of SMEs.
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