Amazon launches new offering for businesses
If you’re like most people, when you hear Amazon, you think of tangible goods. Millions of people shop on Amazon for these very items, but many people are also looking for services. While Amazon is not typically thought of as an option for offering services, it certainly should be considered.
With Amazon’s Selling Services, you never have to pay for leads or advertising again, just set your price and you’re good to go. Amazon also handles payment processing and any customer issues that may arise, such as non-payment.
Amazon will deduct their fee from the customer’s order total and the rest will go directly into your bank account. Amazon also offers tools such as: online scheduling, billing, order management, and automated customer communications to help keep things organized, simple, and helps you save time.
Amazon also helps your potential customers feels more secure about hiring you. Amazon runs a business background check for all service providers and if you offer in-home services (plumbers, electricians, and computer technicians) they will also run background checks on all of your technicians. Amazon will charge $50 per business background check and $40 per participating employee (again, only required for those entering the home to provide services).
How the selling fees work
The Services Selling fees are a bit complicated, but I suspect when the beta testing is over, they will be a bit more concrete. For now, the fees are tiered by service price and beginning today, the fees below apply to: Handyman, Plumber, Electrician, Computer Technician, Auto Mechanic, Car Electronics Specialist, Home Media Specialist, and Appliance Technician in available geographies.
Service Selling fees of 20% of the portion of the service price up to $1,000 which will also consist of a transaction fee and a platform usage fee. It sounds complicated, but it really is similar to Paypal. You will pay 5% of the service fee per transaction and 15% of the service price for a platform service fee.
If the total amount of service is over $1,000, you will pay a total of 15%; with a transaction fee of 5% and a platform service fee of 10%. Wondering what those fees encompass? The transaction fee includes all relevant fees for invoicing, payment processing, and fraud protection and the service platform fee includes marketing, seller tools, and customer service.
When you consider the benefits of not handling payment and customer relations, this could make a big difference in your business, giving you more reach, to a wider audience, for less than you would spend running your own advertising campaign.Currently, Selling Services is a limited beta program, but you can reserve your place by clicking here.