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November 17, 2017

How the real estate industry might use Amazon to their advantage

As a real estate agent in Australia, one of the most intelligent things you could do this year is work out the ins and outs of Amazon’s new real estate agent referral service for when it launches here towards the end of the year (predicted to be in October but not confirmed). Amazon leads the way in online shopping and now it has its eyes set on the real estate industry, which will completely revolutionise the ways things work.

Amazon’s first hint at a drive for the real estate market was their recent ‘Hire a Realtor’ option. Hire a Realtor uses Amazon to allow buyers to pair up with a real estate agent. (Agents pay a referral fee to Amazon in exchange for their name on the Hire a Realtor page).

Uber took over the world of passenger transport world so quickly that most of us missed it because we blinked as Airbnb did for accommodation, and Amazon’s Real Estate referral service might just do the same if you aren’t completely knowledgeable about it.

The most interesting element to Airbnb and Uber is that they have no capital investments (no beds/no cars) however they are now two of the most successful businesses on the planet; and now Amazon is about to launch in Australia with its already tried and tested real estate agent referral service ready to go.

What this means for consumers is they can get referrals and quotes directly from Amazon for real estate agents like they do for any other type of service. This system will make it very simple for consumers to make instant connections with top real estate agents in their geographic location from their home, or even on a bus on the way to work.

What this means for real estate agencies however is that you will absolutely need to change the way you think, starting now. One thing it will definitely change in the Australian real estate industry is it will reduce the referral fees charged by operators within Australia, and will necessitate agencies and agents to work within the Amazon ecosystem. This may be something you cannot work against, because it will be such a powerful tool for those who embrace it.

Accepting that it is close to being in action in Australia is the first step to preparing your business for the arrival. Comprehension of what it is how it works and what data will be effective to use for your self-marketing within the platform will be vital, and it’s time to start now. You simply have no time to lose. Your competition could already be one step ahead of you.