Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The review web site’s My Storefront lets consumers buy goods and services.
Angie’s List, an online source for reviews of contractors, doctors and other service providers, is in the early stages of rolling out My Storefront, an e-commerce platform available to its best-reviewed service providers. Using My Storefront, contractors will be able to sell goods to Angie’s List members within the confines of the Angie’s List web site.
An Angie’s List spokeswoman says that there’s no timeline set for the formal rollout, but she says the business development team is taking inquiries from contractors and setting them up to sell on AngiesList.com. Only contractors that have received top grades in reviews written by Angie’s List members are eligible to open a My Storefront store on Angie’s List.
Much like grade-school students, service providers earn “A,” “B,” “C,” “D,” and “F” grades from customers. Only those providers with overall “A” and “B” ratings can take part in the new e-commerce program. Angie’s List claims more than 2 million paid members, who each pay an annual fee of $39.
My Storefront goods and offers appear in members’ search results and within the contractor’s profile, Angie’s List says.
A video promoting the service features a testimonial from Service Plus Heating and Air Conditioning, a contractor based in Avon, IN. The home services contractor sells toilets, water heaters, garbage disposals and more through My Storefront, items that consumers would normally call to get an estimate on first, says Chris Cunningham of Service Plus. Pricing on items includes installation so consumers know exactly what a project will cost. Cunningham says the company has generated $30,000 in business through My Storefront, a combination of direct equipment sales and other sales gained when the company comes to install the purchases.
Cunningham, in the video, says selling via My Storefront on AngieList.com helps validates Service Plus Heating and Air Conditioning with consumers because of its association with Angie’s List. Angie’s List reviews are written only by consumers who have used a contractor, and contractors can’t alter reviews, although they can respond to them.
Angie’s List takes a 9.5% processing fee on each My Storefront purchase; there are no up-front costs.