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Is Amazon Home Services A Good Investment?

Is Amazon Home Services A Good Investment?

Is Amazon Home Services A Good Investment?

Posted by Jarrod Miller-Dean

Housecall Pro

Uploaded 154 days ago

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Chris Hillerman: 
July 12 at 1:01 PM

Has anyone used Amazon Business Services yet? I think that they quoted me $300 to join them and they'll find me leads at no cost. I assume that they charge customers more for the jobs, so leads are free.

Amazon sells everything from A to Z, and now they are getting into the home services industry. But, is it worth it for your plumbing business? 

How Does Amazon Home Services Work? 

Amazon Home Services allows their customers to find and book services directly with approved professionals. Contractors use an Amazon app to track and manage customers, with the ability to accept jobs or not. Amazon notes it is a good way to fill slower days and fill gaps in your week. 

How Do Contractors Start Selling Services on Amazon?

Service providers must complete an application, submit all licensing information, and carry a General Liability insurance policy with a limit of $1,000,000. 

If you meet the requirements, setting your plumbing business up is very simple, but what about the costs? 

How Much Does It Cost To Sell Plumbing Services Amazon Home Services? 

Many contractors view Amazon Home Services question if it is a scam and do not like the fee associated with selling on the platform. 

Jamis Snowmill: Sounds like a scam. 

Tim Farrell: I have, but they only put the lowest person on the page and they take 20% right off the top. 

Jimmy Lessard: If anyone supports these big corps, they just whack. It's nonsense. 

Pamela White: And you can do it for free yourself. 

David Whittaker: Yep, they take 20%. That would put me out of business. 

James Jermey Chaplin: David Whittaker You need to raise your process.

While there are no upfront costs associated with selling services on Amazon, they do take a percentage for the jobs. However, if you view it in terms of advertising, 20 percent of the job, for the right service, might make sense. 

Google Ads can cost as much as $50 per click (not even for booked jobs), Google Local Services leads cost approximately $24. If you price your services accordingly, you may find guaranteed jobs turn into regular customers for a comparable lead cost. Plus, you only pay for actual services performed. 

Russell Grosjean: I tried it and did one job. It was when they first started offering services. What I didn't like was their privacy and service model, there was no ability to customize. They assume every cleaner uses the same methods, chemicals, and equipment. As for as, 20% I have no problem. I'll pay 20% for jobs any day, all day.

There may be some setbacks, as some members have discovered, such as Amazon assuming all contractors are similar, use similar products, or charge similar prices. It has also been noted that Amazon shows professionals based on the lowest cost, so it may be a bad model for some contractors. 

But, if you are just starting out, or have slow seasons, it might be a great way to find new customers and fill your schedule. 

Annie Dieu: We use them and get to keep the customers for life. We've got several big jobs from Amazon clients. Love it!

Shannon X Steele: Annie Dieu Amazon charges to sign up? If so, how much? 

Annie Dieu: Shannon X Steele No charge to sign up. Just 29% per job that you accept. 

Shannon X Steele: AnnieDieu Is it worth it? 

Annie Died: Shannon X Steele Yes it is. We've got several big jobs from repeat business outside of Amazon. Amazon guarantees that its contactors ox through a background check, insured, and have a license. 

Shannon X Steele: Annie Dieu Ok. I'm going to signup. Thank you. I'm new and need customers like now.

Final Thoughts

Amazon Home Services may not be right for your plumbing business, but it is worth investigating more. If nothing else, being listed provides more brand exposure, as your customers are likely already Amazon users. There is no initial startup costs or fees, and you can choose to take job requests or not.

Jonathan Rivera: Search my name for my Amazon posts in the group. 

It's work it to get o board, despite what theses other contractors are telling you. 

There is no signup fee. 

The leads are extremely high-value customers in my opinion. New customers who don't have a provider and are looking for their forever contractor.

*Contributing Writers: Russel Grosjean and Annie Dieu   

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