Amazon is coming for the real estate industry
At the age of 30, in the year 1994, Jeff Bezos launched Amazon out of his garage. In 1995, the company sold its first product, "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought." Fast forward 26 years and Amazon is the first place we think to search when buying something online. You can find products from A to Z, add it to cart, quickly checkout, and with Amazon Prime, some products can be delivered on the very same day of purchase. Now, that's speed and convenience. This is something we find far from ubiquitous with real estate buying or selling today.
In its growth, Amazon has disrupted well-established industries. Brick and mortar retailers have felt the biggest impacts. E-commerce accounts for over 16% of total retail sales, where Amazon accounts for 45% of US e-commerce spending. This massive growth in e-commerce and Amazon dominance has forced retailers to reimagine their relevancy and how they attract, engage, and retain customers.
10 amazing stats about Amazon
During September 2020, Amazon.com had over 2.44 billion combined desktop and mobile visits, up from 2.01 billion visits in February 2020 (source)
9 out of 10 consumers check a product’s price on Amazon. (source)
Amazon sells more than 12 million products. (source)
Amazon sells over 1.1 million home improvement products. (source)
95 million people have Amazon Prime memberships in the US. (source)
And soon, we believe Amazon may be well positioned to play a role in how we buy and sell real estate.
Amazon has already dabbled in real estate
In 2019, Amazon launched TurnKey in partnership with Realogy, who own household brokerage name brands like Coldwell Banker, Gibson Sotheby’s and Century 21. With TurnKey, Amazon and Realogy hoped to match potential home buyers with local agents using the Amazon portal. Customers who purchased a home with that agent would receive up to $5,000 in Amazon Home Services gift cards and smart home products like Amazon's Echo Dot, Ring Doorbells, Fire TV along with installation services. Due to Covid-19 reasons, this program was discontinued in early 2020.
We believe this was just the start of Amazon’s entry into real estate and will return in some form or other.
Imagine this: Homebuying on Amazon
Amazon could predict: