They are reports going around that Amazon is ready to unveil their local services marketplace. This will put them in direct competition with not only local retail and chain stores but also local search reviews sites like Yelp, as well. Over the years we have seen Amazon go up against some of the largest businesses and they usually always come out on top.
It comes down to how convenient it is to use just one site to shop, compare and read reviews prior to making a final purchase. Why else do you use Amazon?
Here are some more details as to what we know so far about Amazon's next big launch:
A local services marketplace would extend Amazon’s role as a middleman for third-party vendors, which account for about 40 percent of Amazon’s sales. The quality of the local services would be backed by Amazon’s “A-to-z Guarantee” which the company uses to vouch for items sold by third-party sellers on its website, the sources said.
That A-to-z Guarantee could be an important part of Amazon’s strategy in helping it compete with sites like Yelp. With Yelp, people are left to trust the opinions of random reviewers (including potentially fake ones) when they decide to obtain a business’ services. With Amazon’s, that guarantee could be a little more encouraging. Presumably that also applies to the services you obtain from businesses going through Amazon’s forthcoming local marketplace.
Do consumers trust Amazon more than they do Yelp? Perhaps that’s the better question. Yelp has also been criticized plenty on the consumer side of things. Celebrity chef/TV personality Andre Zimmern recently blasted Yelp, saying he finds it to be “increasingly worthless” as a consumer. He was critical of its ability to maintain legitimate content.
It’s not only reviews that Yelp and Amazon may find themselves competing in. Yelp has increasingly been interested in expanding its ecommerce offerings and “closing the loop” in business transactions.
Do you really think that Amazon will push Yelp out of the local review spotlight? Why or why not?
Image Source: Michael Dorausch on Flickr
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