Amazon (NASDAQ:AMZN) announced an expansion of its home services program into 15 cities. The service is now available in Atlanta, Boston, Chicago, Dallas-Fort Worth, Houston, Miami, Philadelphia, Phoenix, San Diego, Washington D.C. and San Jose, California, as well as light coverage in other select regions.
In March, Amazon first launched Home Services in New York to provide a user-reviewed site for finding service providers such as plumbers and painters, similar to Angie's List and Yelp. The site features 15 million service listings, which cover 900 types of professional services, TechCrunch reported.
U.S. consumers spend $640 billion a year on the more than 900 services offered, Bloomberg reported based on Amazon's estimates. Home Services takes between 10 and 20 percent commission of each job booked through the site. Professionals on the site do not pay for marketing, but rather share revenue with Amazon in exchange for its powerful group of customers.
Amazon reported that nearly two times the number of orders fulfilled in June were placed in the first half of July. And in the last three months, the number of new applications from service pros has quadrupled. Home Services was promoted during Prime Day, which boosted orders by 20 times.
Now visitors to the site can order a prepackaged service or customize an order, in other words, search out bids from local pros. Currently, monthly subscription fees and background check fees are waived through the end of the year.
The expansion is just another way for Amazon to go beyond the online sale of products. Other recent additions to the e-commerce marketplace include Amazon Business, a delivery service dedicated entirely to businesses, and Handmade, a marketplace specifically for crafts.
Analysts estimate that Amazon's revenue will increase 16 percent to $103 billion in 2015. All of these new markets are helping to contribute to that growth.
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