Have you ever heard of Amazon Home & Business Services? You will, because it is coming to destroy a business near you. Amazon has been rapidly reshaping retail and some would argue has caused the loss of over 100,000 retail jobs in just 6 months since Trump was elected, from October to April 2017! Amazon has now launched Home & Business Services which could spell the death of many contractors and distributors of products to homes and business.
IT, Electrical, Plumbing and HVAC Contractors are square in the cross hairs of Amazon as it approaches business to sign up as installers, for products they sell online. From complete HVAC systems to electrical fixtures to network switches to fans, Amazon is selling these by the millions and now wants a piece of the installation action.
No longer will many companies be able to sell products at a reasonable markup and charge to install them, without looking over their shoulders at Amazon. Wholesalers, Commercial and Consumer Focused business all are going to face a much stronger competitor, that doesn’t care about making a profit as long as it wins business and satisfies clients.
What can a business do? Either join them or fight them. A business can sign up with Amazon just like many retailers to get a piece of the action for a portion of the revenue in exchange for doing service work and lose most of the margin on equipment sales. Alternatively, a business can improve customer service, leverage the personal and communication relationships they and their employees have with their customers, to put a moat between them and the online giant.
Kael Campbell is President and Lead Recruiter of Red Seal Recruiting Solutions, a company providing recruitment services in mining, equipment and plant maintenance, utilities, manufacturing, construction, and transportation. When he is not recruiting, Kael spends as much time as possible with family in the great outdoors and on the water. He volunteers his time as a Board Member of the Entrepreneurs Organization of Victoria and a Member of Victoria Marine Search and Rescue. You are invited to subscribe to our employer newsletter or submit your resume.