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You may have purchased products on Amazon before. After all, it is the land of two-day shipping and reasonable prices. Because of its business model and ability to gather millions of users, it has since expanded to being more than just a product warehouse. Perhaps while purchasing a TV mount or security camera, you may have noticed a box that asks whether or not you would like to include installation to your purchase.
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This magical button is what you should consider getting behind as you work to build your customer base. But before you do so, here’s how it all works.
There are two types of jobs that you can earn from Amazon: offer-based jobs and claim-based jobs. Offer-Based Jobs are purchased by customers on Amazon by selecting a specific service professional and submitting preferences for when an appointment would work best. For offer-based jobs, the service professionals set the price estimate in advance. Once the buyer submits the request, the service professionals receive an email and finalize a time to visit the customer’s home.
The second type is a Claim-based Job. These jobs are purchased on Amazon but the buyers do no not select a specific service professional. Instead, Amazon shows a single price using localized price estimates based on the range of competitive prices that providers offer for each service and collects a single appointment preference from the buyer. From here, the job is sent to every service professional who offers that service within the buyer’s ZIP code. The service professionals receive these jobs via notifications through the Selling Services on the Amazon app or the Seller Central home page.
Registering your business to sell its services on Amazon is not complicated at all, but qualifying is another story. Here are a few items you must have before registering with Amazon.
The first requirement to sell your services on Amazon is to get General Liability Insurance. According to Amazon’s website, “All Amazon Home Services providers are required to carry General Liability insurance with a limit of $1,000,000 US dollars per occurrence. You will be required to provide your insurance information upon registration.”
The second requirement to sell services on Amazon is to get the proper licensing for your service. “If you select a trade profession (Electrician, Plumber, HVAC Specialist, General Contractor), you will be required to provide appropriate license/certification information required by applicable laws or regulations.”
Another requirement that is not elaborated on is a background check. The website says that Amazon will run a business and technician background check. It does not offer specific details about what that means.
And the final requirement is to submit a formal application. In this application, you will submit all the other required materials so they can be processed and your application can be evaluated.
With all of that in mind, it is important to know what you are getting yourself into before setting up your Selling Services account. There are several reasons why an installation company would want to register as a certified installer. Here are a few:
Selling Services on Amazon does not cost you any money upfront. Like an Upwork site for security installers, it’s a job sourcing opportunity that doesn’t require any contracts or signup fees. In the advertising world, you have to pay upfront, taking a risky investment that is not guaranteed to result in work. Registering with Amazon, however, does not cost any money upfront, and results in jobs without any work on your part.
As people in your area purchase items like IP cameras on Amazon, they have the chance to purchase professional installation. That’s where you come in. Every time an individual chooses to pay for professional installation, you get a notification telling you about a new job. The best part? Each job is guaranteed and facilitated by Amazon. No more haggling customers for payment.
As mentioned before, selling your services with Amazon does not require any commitments. If you try it out for a while, you can decide to quit selling your services through Amazon at any time without any penalties. This is a huge pro for smaller installation companies looking to try out new things without having to pay too much.
For established businesses that are looking for opportunities to grow their clientele, selling your services through Amazon can help you earn new customers who would not have found you any other way. Much like a business advertising service, you work directly with buyers who need your services.
The most immediate con to selling your services on Amazon is having to give up 15-20 percent on all jobs you do through Amazon. This can feel offsetting at first, and for many companies, this is not a good fit. Sacrificing 15-20 percent on each job will not work for every business, so it’s important to identify what your goals are and whether or not Amazon can help you get there. This really works best for established companies who are looking to find new clients and fill in the dead spaces of their work calendar.
The second con is the time it takes to transfer the money to your account. As a Pro installer, you are most likely to get payment for your services one week after doing the job. Sometimes, it can take as many as two weeks. For businesses with cash flow problems, this will not fix them immediately. So, delivering a great service experience and doing so consistently will help you get more installation jobs and grow your customer base.
The final con to consider is having the proper licensing and insurance to meet Amazon’s requirements. Before you can even apply to sell your services with Amazon, you have to deliver proof that your business insurance covers $1,000,000 US dollars per occurrence. In addition, you must be properly certified to install the devices.
After reading through the cons, you may be wondering to yourself if going through all the hoops is worth it. And to that we say “maybe.” You have to think of selling your services on Amazon as a business growth opportunity. And in every case, advertising your services will take money off the top. The benefit to “advertising” with Amazon, is you are getting the most targeted advertising possible without having to pay for it in advance. In addition, you are getting guaranteed payment every time. Customers pay in advance through Amazon, so you don’t have to worry about collecting payments.
Now, consider that instead of paying for Pay Per Click advertising on Google, or renting a local billboard, you get guaranteed jobs without losing untracked dollars. In the traditional advertising world, it can be difficult for businesses to track the return on investment. When someone calls looking for services, it can be impossible to track where they came from or how they hear about your business without the right processes and tools. Selling your services through Amazon, however, gives you the ability to track directly where customers come from and gives you the chance to create a new customer relationship which you can nurture to drive future business.
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