We all know Amazon as a company that offers a wide range of products and services. It is the world’s largest online retailer in terms of revenue and market capitalization. Remember it started as an online bookstore. The website began selling computer games, electronics, clothing, furniture, toys and many other products.
Soon, the website launched a service platform for customers to gain access to landscape workers, artisans and housekeepers in their neighborhoods. This proposal used an independent contract model. The model uses the Amazon website to offer services without hiring Amazon employees and buying new products. Simply put, Amazon offers employees a platform to connect with potential customers. Amazon then uses these websites to reach business customers and get shares from these employees.
A new trend in the household
Amazon’s next step was to hire Seattle-based home cleaners as employees for the new service. This cleaning service provided by the company is called ‘Amazon Home Helpers’. Services include weekly cleaning of a 1,500-square-foot home at an estimated cost of $ 156. According to Bloomberg, the initiative begins in the Seattle area.
When visiting the Amazon Home Assistants website, they say that they only hire trained professionals and use safe and environmentally friendly cleaning products. In addition, they will promote their services by openly stating that the products they use are highly valued on their websites. Not only that, you will persuade them to take advantage of your services by adding personal services, saying that their services are provided with a ‘guarantee of happiness’, that if you are not satisfied, they will refund your money and take care of you. from unresolved issues.
Review the business model
When Amazon Home Assistants were launched in 2015, the company had high expectations. Combining all the services offered, it gave foresight to the intended $ 600 billion market. At first, the company seemed inefficient and could not keep its promise. However, Amazon has pushed and reassessed the contractor’s business model placed on other services. The decision to hire more employees and allocate more funds to use their products shows that the company believes that independent contractors are jeopardizing customer satisfaction.
What are the advantages of hiring employees directly to the services? Amazon has better control over its employees and the services it offers. Although a little more expensive, the company has better control over the management and training of employees. Hiring direct employees will also allow Amazon to organize programs and operations more smoothly. This will make cleaning services more standard. First of all, it ensures that customers are happy.
Gradually changing the business model, Amazon’s test will determine whether direct home-based recruitment services can help differentiate services from their competitors. This will show them whether this strategy is currently successful in a profitable market. In addition, the company aims to see the difference between cleaning services and Amazon’s great brand.
Amazon Home Assistant compared to others
Statistics show that in 2017, households in the United States spent $ 16 billion on cleaning products and services. This information is provided by ServiceMaster Global Holdings Inc., the parent company of the Merry Maids franchise.
What should be the selling point of Amazon Home Assistant? In an interview with Bloomberg, Kirthi Kalyanam, of the University of Santa Clara’s Retail Management Institute, said the move should be more about selling products to potential customers than promoting services. This should include end-to-end services that are Amazon branded. This is a strategy that can only be achieved when hiring direct employees, as it is difficult to achieve when using independent contractors.
If the business initiative works, Bloomberg says, it could lead Amazon to improve other service-oriented areas. Examples in this category are home improvement products and advanced electronic products that may require installation and assembly services.
On top of the expected expansion in Amazon’s services, this initiative can really shape our approach to homework. This, in turn, will affect the cleaning products market, the demand for home stay helpers, and those who earn their living from startup workforce services.