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How Amazon Home Services Could Boost Product Sales

Amazon launched a new marketplace for on-demand professional services called Amazon Home Services. What makes it so powerful is its ability to reach shoppers at the point of purchase, and the new offering could actually boost conversion rates for the products it sells.

Shopping for a treadmill on Amazon? You’ll see a callout right on product pages, “Need this assembled? Buy assembly services directly on Amazon. Backed by our Happiness Guarantee” followed by a line displaying how many professionals are offering the service along with the lowest price offered in your area.

Shoppers who may be concerned about purchasing an item needing assembly or installation on an online site may be swayed knowing they can use Amazon to connect with local service providers whose work Amazon guarantees.

The new offering is a direct threat to Angie’s List, which charges consumers to read how others have rated local service pros and leave their own ratings as well. In marketing material released with its announcement on Monday, Amazon said its service professionals rate an average of 4.7 stars, “and you don’t have to pay to read them.”

In fact, Amazon is paying its customers to try it. In a limited time offer, it will give customers a $20 gift card for buying a service valued at $99 or more before April 13, 2015.

Amazon handpicks its service professionals, who are background checked, required to maintain insurance, and expected to maintain a high performance standard. “If customers are not satisfied at the end of the service, Amazon will work with customers and the pro to ensure the job gets done right or provide a refund.”

The company went on to explain, “Service pros compete for a customer’s business based on price, quality and availability. If customers find a lower price for the same service and pro, we will match it. Customers can add pre-packaged services right to their cart with just a few clicks on Amazon and are only charged when the service is completed.”

Amazon Home Services is available across the country in major U.S. metropolitan areas including New York City, Los Angeles, San Francisco, and Seattle. Here in suburban Boston we can hire someone to wall-mount a TV ($169), assemble a treadmill ($189), or replace a brake pad ($110). But we can’t hire an electrician, plumber, or piano teacher, according to the listings available for our zip code.

Amazon didn’t disclose how much pros must pay to be listed on the site.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.