
The home improvement service industry is fragmented but has been bouncing back in recent years, estimated to be about worth $400 billion. It’s no wonder that Amazon’s looking to cash in, especially since it’s one of the last industries without a significant online counterpart. Though the exact numbers may change, Amazon plans to start taking a cut of as much as 20% from services brokered on its new web service as soon as mid-august.
Angie’s List would be the closest competitor to Amazon’s new initiative, and it doesn’t exactly offer a blueprint for success either. So much money has been spent on advertising for the site that the company is constantly in the red, and small businesses remain notoriously difficult to rope in.
Amazon’s team on the ground hopes to reach out to well-regarded service industry contractors and capitalize on customer loyalty, even including a money-back guarantee in some trials for unsatisfied customers. Participating contractors are required to reply to calls within 24 hours and submit to annual background checks to ensure quality.
While some trial participants are worried about having to overcharge to make up for Amazon’s cut, others are satisfied with the influx of new clients, even before advertising made the program widely known.