Amazon Innovations

Amazon's Sleeper Success With Home Services

With its streaming media and Web services departments, it can seem like Amazon is transitioning more and more into a retailer that focuses strictly on selling intangible goods. While that may be true, the success of Amazon Home Services proves that while products might differ, Amazon is, first and foremost, focused on selling convenience.

CNET reported that Amazon is claiming in a press release that orders to its Home Services division have increased, on average, 20 percent every month since its launch last year. To back up these numbers, Amazon Home Services has expanded from an initial four markets to its current 30 metro coverage areas, and the overall services offered have also ballooned to 1,200.

While it might be tempting to talk about Amazon's continued overachieving in areas it previously had little experience in, Colin Sebastian, analyst at Robert W. Baird & Co. Inc., told Bloomberg that Home Services proves Amazon is in its comfort zone whenever it attempts to make a difficult process easier for the consumer.

"They are uncovering ways of making the purchase of almost any product easier and more cost-effective than shopping in a traditional store," Sebastian said. "The barriers between consumers making large appliance and home purchases online are falling quickly, and the home services integration with Amazon is a great example of that."

The press release wasn't available to the public, but CNET explained that Amazon was diplomatic in the information it released — data on growth didn't include comparable data on benchmark figures or overall gains in sales or customers. It's not out of the realm of possibility for Amazon to try and drum up more interest in its Home Services products with the press release, especially with other platforms, like Angie's List and Yelp, trying to steal away more of Amazon's intended market share every day.



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