Posted by Jarrod Miller-Dean
Uploaded 86 days ago
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?
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.
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?
Many contractors view Amazon Home Services question if it is a scam and do not like the fee associated with selling on the platform.
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.
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.
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.
*Contributing Writers: Russel Grosjean and Annie Dieu
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