Amazon Services: Offered Soon by an Electrician Near You?

Amazon Services: Offered Soon by an Electrician Near You?

Lots of chatter out there about Amazon’s latest venture, its Amazon Home Services offering that links consumers shopping for all sorts of home repair needs, including plumbing, electrical, landscaping, computer/television installation.

I think the service fee Amazon will charge participating trade folk for many business transactions they get through the service may prove to be a bit steep at 20%.  When you drill down into Amazon’s website to the section entitled “Services Selling Fees,” you learn there’s a “Standardized Services Selling fee” of 20%, and other fees for what Amazon defines as custom and recurring services. Amazon does do a background check for any contractors who apply for the Services program, which seems to be a pretty neat idea.

While smaller companies may appreciate the added visibility will provide and the fact that Amazon will handle the payment end of the process through its service, I think many contractors will find the 20% cut that Amazon is taking on many services to be too big a bite out of their profit on a job.

I checked out Amazon Home Services in my zip code in the Kansas City area for electrical work and so far Mr. Electric, the nation-wide franchise of electrical contracting businesses was the only company listed.

Time will tell on how big Amazon Home Services will get.

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