Amazon shoppers in New York, Los Angeles and Seattle would see the offers of service providers fter purchasing items like a car stereo or air conditioner that may require installation. The listings service, known as Amazon Local Services, is part of a broader Amazon effort to compete with brick-and-mortar stores, which still account for more than 90% of retail sales. Similarly, Amazon is trying several initiatives to speed deliveries, and released a credit-card reader earlier this year.
But the listings service will face hurdles. It can take years to build a stable of service providers. Moreover, Amazon is entering a crowded market with established players such as Yelp Inc., Angie’s List Inc. and Craigslist, as well as startups like Thumbtack. GrouponInc. recently rolled out a listings service through which it will eventually offer daily deals. Amazon aims to distinguish itself by offering a money-back guarantee on services rendered by its contractor partners.
Amazon will conduct background checks on the businesses and determine if they have liability insurance. A recent Amazon search in Los Angeles for ceiling fans yielded recommendations for three installers, or “handpicked pros,” with estimated prices ranging from $89 to $185. Customers can add the services to their shopping carts before they check out.
Kim Hopkins, owner of Electric Connection in Los Angeles, said he had been invited to participate in the program less than a month ago. He said he believed his electrical business had only appeared in search results for a few days. “If this is done right, this could be a huge business,” said Mr. Hopkins. He said he had had one inquiry so far from a customer who wanted to install an unusual lighting fixture. Mr. Hopkins said he would pay Amazon a fee when the service leads to a job, though he declined to elaborate.
On its website Amazon will display reviews of the professionals from its customers. And the service providers will, in turn, be able to create their own profile pages, with additional information about their businesses, and a scheduling feature will help customers book appointments.
Eventually, Amazon hopes to expand the test to include fitness instructors, music teachers or other service providers, according to the document.
Source: http://online.wsj.com/articles/amazon-offers-help-finding-local-handymen-1416877723?mod=WSJ_TechWSJD_moreTopStories
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