After months of rumors, Amazon has entered the increasingly crowded service pro referral space with a beta test in nine markets. According to a dedicated web site for the launch, service pros will pay Amazon 20 percent for services that cost $1000 or less, and 15 percent above that amount, as well as monthly subscription fees — although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees.
The service is launching with a strong focus on consumer electronic installation and repair, fitting with sales on the Amazon site. Auto and bike services are also featured, with more categories likely to be added. All pros must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well.
Amazon will be competing against a number of other players in the space, including market leaders such as Angie’s List and Home Advisor; Pro.com, a new site launched by former Amazon exec Matt Williams; Serviz, a new site launched by former ReachLocal exec Zorik Gordon; and The Home Depot’s Red Beacon service.