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Amazon Creating A Services Marketplace Online

November 28, 2014

A few thoughts:

  1. This is a very interesting way to take advantage of a number of existing Amazon technologies–primarily their payment processing and review system.
  2. Services are an increasingly important part of the economy and is less subject to commoditization. This is Amazon dipping into a massive growth area by commoditizing discovery and payment. It also offloads some of the risk from both sides of the transaction. It’s very bold, possibly brilliant.
  3. If you have tried to find a reliable carpenter, electrician, plumber, house cleaning service, etc lately, it should be obvious the value that Amazon can provide. Even as a subscriber to Angie’s List, which has been invaluable, finding reliable, affordable, and quality services is still a frustrating experience.
  4. This is why technology companies get huge valuations. It is hard to anticipate just how technologies to become the first online booksellers will lead to a massive number of accounts with credit cards and a strongly trusted brand. It is hard to anticipate how book reviews and powerful search andfiltering become the way you find people to come into your home and fix a toilet. But truly, it’s hard to anticipate the limits of a company with massive reach into people’s wallets that scales.