More Updates on Amazon Into Home Services Market

Amazon is shifting away from daily items into providing wide range of services. The company is moving a step forward by establishing a channel, from where now not only goods are bought but services sell there too.

Lately all the huge brands in the e-commerce industry, along with number of start-ups are striving for a portion in the local market of plumbers, electricians, dog walkers and other manual labor, more commonly also known as home services.

The concept behind this whole idea is to bring consumers and assessed service providers on the same platform through online market marketplaces to connect with each other. Most of the companies will enjoy the commission with each transaction made.

Last year, Google Capital showed interest in the startup Thumbtack and funded a healthy amount of $100 million. Now the Google plans to enter into the same market itself. However it’s still unclear if Thumbtack has any association with the plan, Zappacosta said.

Few other startup companiesf like Porch, Redbeacon and Pro.com are also working on the similar business model. While Last year Angie’s List is advancing its game by introducing a mobile app known as SnapFix , which allows the house owner to take a snap of any affected item , for instance a broken screen and then service providers bids on it to fix it.

However last month all the efforts were shaken when the e-commerce company, Amazon announced to launch its Amazon prime and Amazon Home services, which offers homeowners with variety of insured professionals to provide service for them like to install a new television. You can find the price quotes and scheduling at the checkout process.

Interestingly Jeff Bezos, Amazon’s Chief Executive, has already funded in Pro.com, and Amazon has teamed up with TaskRabbit on this venture. Peter Faricy, vice president of Amazon Marketplace, says that the company is offering more than 700 different kinds of services.

He further added, “I can tell you that with 85 million customers purchasing products from Amazon that needed installation or assembly, customers have told us that Amazon Home Services fills an important need,”

Reportedly as for Google, the company’s work was still in the initial stages, it is a great opportunity to diversify from the advertisement sector and to compete with Amazon directly, as the company is already started its services related to delivery and shopping such as Google Express.

Matt Feldman, a businessman who founded Homlux a year back. He received a call randomly couple of months back from an Amazon representative who told him that his company is eligible to apply for Amazon’s new venture based on his positive customer reviews. After some documentation process and background checks, Homlux got selected.

This experience has affected its business as he needs to cut down on few services such as mounting televisions in half price , to be competitive with Amazon other service providers. The reason Ms. David chose Homlux was largely due to its low prices. Although, in return it has also brought him a lot of new business, Mr. Feldman stated.

Mr Feldman took it as an opportunity as they can focus on the volumes but is a bit worried about the low prices. On the other hand, Amazon charges commission on each transaction For example, charging 20 cents for the task of mounting a television.