This article originally appeared at Real Clear Markets. Click here to read the full article.
By Ike Brannon
The New York Times recently wrote about Amazon’s recent expansion into the realm of services by creating various local marketplaces for its customers to find plumbers or handymen to do a variety of services that the retailer will standardize in some way. The retail monolith, the Times concluded, will succeed at dominating the local service markets as thoroughly as it does the book and toy market.
Color me doubtful. While expanding into services may seem like the next logical move for the retail monolith, Amazon’s core strengths that have allowed it to dominate the internet retail market bestow it few advantages in a service marketplace. In short, this may not end well for them.