Amazon.com has already created the mark in the eCommerce market and it is now planning to dive into local services market later this year. Amazon to enter local services market and it is in plans in testing the local marketplace which includes the services from plumbing to dog walking which includes almost everything. It already established the recommendations and ratings infrastructure which could take on the sites like Craiglist, Yelp and Angie’s list. This might also be threaten to the well established home improvement service like Lowe’s and Home Depots which are assisting the customers to find the home service providers like plumbers, painter, carpenters and more.
Amazon is considering its potential strengths and is in the plans of expanding from the consumer goods into local services. Greg Sterling, founder of the Sterling market intelligence said that, “Amazon could become a terrific competitor in the local services and directory space and it is having the good reputation and consumer brand and the resources to compete with Google, Yelp and other players”.
Doug Stephens, founder of retail prophet said that, “These type of local enterprises represent the long tail of eCommerce and in total account for the staggering amount of our economic activity”. He also added that, “By creating a well organized marketplace for these kind of peer to peer services, Amazon is set to conquer the huge market”.
With the loyal user base and the trusted recommendations and rating system, Amazon would conquer this market easily. In the vast and developed country like US, logistical challenges vary between the regions and this completely new ball game that Amzon have to recognize.
Bob Phibbs, the retail consultant has observed that, “services are much different than products, if they guarantee the installations, the investors will not be happy to invest. Angie’s list is supposed to have all the potential when they went for IPO, but has been profited since couple of quarters”.
U.S small and local business market is very huge but it is quite difficult to penetrate and the average ad budgets are small. Some big players like Google, Facebook, Yelp, Twitter, Yahoo and Microsoft are facing tough competition here.