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Amazon to launch new "Home Services" marketplace

Molly Wood Mar 31, 2015
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Amazon.com, the e-commerce retailer that sells practically everything, is also looking to become an even bigger part of our lives.

The company is now launching Amazon Home Services, an online marketplace aiming to connect shoppers to services—everything from changing the oil in your car to planting a garden.

So far Amazon Home Services is being rolled out in 40 states, offering up to 700 distinct services. Given Amazon’s supreme brand recognition and the fact that shoppers are already used to the platform, moving into the service sector makes a ton of sense according to Amy Koo with Kantar Retail.

“They want to actually get much closer to the shopper and really become the trusted advisor,” says Koo. “To really have a share of life, in understanding what is it that they [the customer] need. Want is it that they want.” 

While Amazon has struggled with profitability in the past, Sucharita Mulpuru with Forrester Research says matching third-party services with Amazon customers could be a major boost.

“Whether it’s selling physical products through third parties or services through third parties, those both represent lucrative opportunities for them,” says Mulpuru

Given the amount of electronics Amazon sells Mulpuru says she could see it going toe to toe with Best Buy’s Geek Squad, or even home services sold by Lowes or Home Depot.