Amazon Home Services-Next 800 Billion Dollar Opportunity

Amazon Home Services is finally  launched or been introduced to put it mildly. According to a recent survey 53% of household said they are going Amazon Home Services.

SUIT main logoSo why is it important ?

Think about it, millions of products get sold on Amazon everyday , comes down to around 8 billion a month, that’s with a  “B”, that’s more than GDP of several countries.

Lets take a example that you buy TV on Amazon ,You will immediately see TV installation as recommended service and if you bundle up , you will save 10% off TV . That’s a offer you cannot deny .

3We all know the potential , All I am saying it , with such strong existing pipeline of sales and customers , It will only take Amazon 4 to 6 months to get saturated with professionals, sellers and companies . After that any new entrant will have tough time getting in because customers will only prefer professionals with good reviews and you will have none.  Sorry buddy , no Soup for you 🙂

Most Important Reason – Direct from Horse’s Mouth

Amazon limits the addition of new sellers in the Amazon Home Selling Services program to ensure customers are able to buy with confidence from all sellers on Amazon.

That means if you don’t get in NOW and if the existing sellers are doing good job , You will never get entry in coveted club .

Here are some possible combinations :

Guitar lessons with a purchase of Guitar ?                                                                     Yoga lessons with purchase of mat ?                                                                  Marathon training with purchase of running shoes ?                                                     Dating lessons with purchase of book “How to get girls ”   ?

Now thats pushing it by you just never know how high it might go  🙂

Possibilities are endless  and only up to your imagination

4Amazon Home Services

I am Convinced , Show me whats in it for me and  how I can make money ? 

I am going to tell you several ways to make your millions on it . But for starters , Go to Amazon Home Services and register yourself or your company and for god’s sake dont be lazy , Just do it .

I am waiting………….Do not read this if you haven’t signed up with Amazon Home Services . Reading will not make you money , doing something will .

Here are several Ways You can Capitalize on this new Gold Rush ?

Most Obvious Way : Register as Seller ,professional or small business 

As mentioned before , just register yourself and start selling your services . Its no brainer. Try this link if you need help with enrolling in Amazon Home Services progam

Help businesses  make profile on Amazon 

Lets take example of Cyber U LLC which is providing iphone repair in zip 10001 .Notice that profile is not well written and hence they got no business so far .

If you know how to write sales letter or have little bit of copywriting skills . You can put an ad on craigslist and start helping sellers make profile .

cyber u llc

Make a company that helps test drive services and get reviews 

We all know in Amazon , reviews matters so much that if you get few bad reviews , you are basically finished. Its a classic catch 22 situation , Without reviews businesses wont get customers and without customers businesses wont be reviews . Thats when your company can come in and help get initial customers for a fee  . That way they will get some reviews to get started . I am not suggesting that you give fake reviews, You are just providing initial customer base for sellers to get started .Customers will give honest feedback on sellers amazon profile.

Subcontract from Top Sellers or Stores 

Amazon can be both blessing and curse at the same time. If you get good reviews and your business takes off , You will have so much business that you wont be able to handle it and sometime companies don’t want to hire additional staff as it increases overhead and cuts into their margin .

Amazon Home Services
Amazon Home Services

So basically you approach top sellers in your category in your area and partner up to take up that additional work load . WIN-WIN . You will have to build trust and good relationships before anyone would entrust you with any responsibility.

There is requirement from Amazon that your subcontractor wear your company T-Shirt. If your company name is "Sachin Rajgire Car Repairs" , Make sure your subcontractor wears "Sachin Rajgire Car Repair" T-Shirt NOT  Mike's Car Repair or you would be barred

Be the front End of Company who doesn’t have time or tech savviness

Lets assume your friend has great company and they provide lawn moving or any other service . He probably doesn’t have time or he might not be tech savvy enough to understand Amazon Home Services . You can tie up with him and run his Amazon part of the business.You set up profile, provide quotes and do all it takes to get clients and you can use his company credentials.You can share the profits

You can help businesses convert Amazon leads to Personal Leads for Long term Value

Ok , Do you want to know how percentage Amazon takes for every sale . Here a screenshot . Here is the Amazon Link to  Transaction Fees-Its hidden somewhere 

Amazon Fees

Give or take its around 20% on a transaction . Most businesses don’t want to pay 20% everytime for a service . They want to convert that lead to permanent paying customer to increase total lifetime value of that customer .So how would you do that ?

That’s when you my man comes in as saving grace with all the corporate MBA bullshit and sets up a systems where they can retain that customer

So What can you do , Again tons of things ..

  • Setting up email marketing systems to send newsletter regularly
  • Offering referral points or bonuses
  • Setting up loyalty systems
  • Setting up a CRM Customer Relationship Management software , There are plenty of free ones like ZohoCRM etc

 Make Attractive Marketing Material to Entice New Amazon Customers

You can help businesses make new customized marketing material for Amazon . For example

  • You can make a compilation of video testimonials from satisfied Amazon Home Services Customers and put on Amazon profile and website
  • You  can make dedicated Amazon customer website or direct it to subdirectory when they click from amazon to make personalized pitch
  • Make new commercials for Amazon customers
  • Make Animated video on how the process works to better inform customers
  • Design new flyers and posters, logos etc

REAL LIFE EXAMPLE –You can use this example for pitching to your prospects

Lets look at the  2 sellers providing USB outlet installation , Which one looks more attractive ? Ignore Price for a second

Amazon Home Service Provider Logos

Sell Insurance to businesses that qualified for Amazon Home Services 

I have mentioned Amazon Home Services Insurance Requirements in details here . Basically you and your subcontractor or affiliates need General Liability or Workers Compensation Insurance . Most established businesses carry these 2 insurances but their affiliates and subcontractor might not.

All you have to do is search Amazon for new sellers that come online

STEP 1 :

Go to This LINK and follow directions mentioned in the screenshot. Select Each Category and on right corner , choose by Newest Sellers

STEP 2 

Put all new sellers you find every day in a spreadsheet . Here is a Sample One , Google them or lookup on their website and find contact details .If you can’t find email, call them. Enter them in spreadsheet and send this sample Email

—————————————————————————————————————————

Hi XXX

Congrats on getting in to Amazon Home Services Program. Your seller profile and website looks amazing .Just a suggestion to add some customer testimonials . I am working with some other business owners and their conversation sky rocketed after they displayed some video testimonials on their website .

Also I wanted to bring to your attention about insurance requirements of Amazon Home Services program for you and your affiliate or subcontractors . Here is the link to the requirements

 http://amazonhomeservices.info/amazon-home-services-insurance-requirements/

I have helped 3 other businesses to meet their Amazon insurance requirements. After they shopped around, they found my quote to be most reasonable . Let me know if I can help you with the insurance. Even if you don’t buy insurance , I can share some business lessons from my clients who  are doing very very well with Amazon

Stay in Touch

Your Name – Certified Insurance Agency Since 1776 🙂 . <—— Make sure to show credibility

—————————————————————————————————————————-

Help Businesses with Business Licenses and Authorizations 

Several small businesses are running several years without proper business licenses and certifications. If you have knowledge of state,local , county rules you can help sellers in acquiring proper licenses so that they can qualify for Amazon Home Services .

 

Here a quick look , if you can refund , reschedule or cancel your amazon home service appointments. Yes you can do it very easily, Just go to your orders and you will see options for it .

Refunding Rescheduling or Canceling Amazon Home Services
Refunding Rescheduling or Canceling Amazon Home Services

Try not to reschedule or cancel too many times as Amazon will start charging next  year Jan 2016.

 

Most federal and state laws in USA mandate all businesses to carry 2 kinds of insurance . State and county law generally dictate the terms and coverage.

Amazon Home Services  Insurances ( Mandatory )

1) General Liability –

2) Workers Compensation

Amazon Home Services  Insurances ( Optional  )

Auto Liability Insurance – If your work involves employees company vehicles .

Here a Page that explains Insurance Requirements

A Very Important thing to Note is that Amazon Home Services requires you and your sub contractors or affiliates to carry all required insurances or you will be liable for all damages caused

Amazon home services fees are very very important for small businesses to calculate in their total overhead

Amazon Home Services Fees
Amazon Home Services Fees

Here is the breakdown :  Here is Official Amazon Link that mentions all charges

Services Selling Fees

There are  2 type of Fees that Amazon will charge

Transaction fee :   Invoicing + payment processing+  fraud protection.

Platform fee : Marketing +advertising + seller tools +customer service.

Type of Service Transaction Fees (% ) Service Platform Fees(%) Comments
Standardized Services 5 15 In Effect Now
Custom Services 5 10 Waived till June 30
Recurring Services 5 5 In Effect Now

 OTHER FEES APPLICABLE TO ALL BUSINESSES : 

All Fees are waived till  Dec 31 2015

Sign Up Fees :  waived through December 31, 2015

Monthly Subscription Fees: waived through December 31, 2015

Background Check Fees: waived through December 31, 2015 (for fees incurred prior to this date)

 

 

AMAZON HOME SERVICES FEES STARTING JAN 2016 

  • Per Business: $50 (required for all service providers that list services on Amazon
  • Per Participating Employee: $40 (required for employees performing in-home services)

How to Get in Amazon Program as Service Seller

I failed quite miserably in trying to get into Amazon as a Professional business or trying to sell my service .That means Amazon is scrutinizing your business quite well before admitting you. BTW I was just playing around with Amazon Home Services application process , just to see if they accept me as Digital Marketing Professional in Washington DC metro area .

Here is the screenshot of email I got . I like the choice of words by Amazon , Instead of saying your application has been rejected , they told me , your application is not approved . Thanks Amazon , feels little better 🙂

amazon home services denial email
amazon home services denial email

That’s  a great thing for all certified professionals and established businesses .Cheap knockouts might not be able to compete with you . You get in with your competency .

First step towards successful application would be some tangible and quantifiable way of showing Amazon about your history and achievements,

Here are things you need be ready with before applying for Amazon Home Services Seller Account

  • Certifications – State , industry
  • Customer reviews: Testimonials from your existing clientales
  • Licenses: State, Local and County Licenses are must
  • Insurance: Liability and Workers Compensation for yourself and your associates or subcontractors
  •  Solid website: You need good website to show Amazon that you established player

Lets take a look at one of   Provider Homlux who have been admitted, certified and has finished 6 jobs as an example

Observe the feedback , Already got 6 reviews in span of 10 days . Imagine how much business Amazon Home service will give if you get in early and accumulate positive reviews .

Also Note that Homlux was

  • Licensed
  • Background Checked
Amazon Home Services Reviews
Amazon Home Services Reviews

I did a quick google and looked at Homlux website and here are things I noticed .

  • They have pretty good looking website
  • They have good testimonials on website

These factors would have definitely influenced Amazons decision to let them in.

So be prepared before you apply because you might not get a second chance . So after making sure you have your ducks in row

Head over to this Seller Page of  Amazon Home Services

Now from here its pretty straight forward ,

  • Apply for the program ,
  • Get the Invite code
  • Complete the application
  • Get the background checks Done and you are in business man
  • I am not Businessman , I am a Business Man - Jay Z

There are 2 kinds of service

In-Home AND  In-Store , Make sure you fill up proper forms .In home service requires 6 point criminal check .

 

 

If you have any suggestion , Feel Free to send me email at sachin.rajgire@gmail.com

I am constantly updating this page , Please  check back in few days.

 

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