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Amazon Tests Marketplace for Local Services

Coming soon to Amazon listings – related services that shoppers can purchase, such as a handyman to install the ceiling fan they’re purchasing. While Amazon will also offer local services as standalone marketplace, it’s the ability to display complementary services directly next to products on Amazon.com (and possibly on post-purchase messaging) that will make it most attractive to small businesses.

Reuters wrote about the new offering that Amazon still had under wraps in July as it was testing the service, called Amazon Local Services. Now you can watch a YouTube video explaining how it works.

There are two types of services you can offer through Amazon Local Services: in-store and in-home services. Amazon requires all in-home services technicians to submit to background checks, and service providers may be required to meet additional requirements in order to list certain services.

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Interestingly eBay tested a similar service last year, which it wrote about on the eBay blog. In July, eBay Marketplaces President Devin Wenig said eBay would try it again.

The exposure to Amazon customers doesn’t come cheap – those who fall under Handyman, Plumber, Electrician, Computer Technician, Auto Mechanic, Car Electronics Specialist, Home Media Specialist, and Appliance Technician will pay 20% of the transaction fee up to $1,000, and 15% thereafter. That includes payment processing fees, however, as well as marketing and seller tools.

In addition, they’ll pay a monthly subscription fee that is waived through June 30th, and they pay for their own background check if applicable.

On the other hand, service people do not pay for leads or for advertising.

Amazon is testing the service in cities in the following states: California, Florida, Georgia, Kansas, Kentucky, New York, Texas, Washington, and Wisconsin.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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