Best Buy is getting whacked as Amazon comes after its key advantage

Seth Archer

Jul 10, 2017, 20:10 IST

Shares of Best Buy are getting clobbered, after it was reported that Amazon is going after one of the company's key advantages.

For customers wanting in-person help setting up their complicated new technology, Best Buy's Geek Squad was one of the most well-known options. Now, according to reporting from Recode, Amazon will be a major competitor in the space.

The retail giant has started to offer in-home tech consultations and installations in select cities. The new offers began after the company saw a higher than average return rate for smart-home electronics and started the service in an attempt to lower those rates, according to Recode's Jason Del Ray.

Shares of best Buy are plummeting after the news broke. Shares of the retailer are down 7.4% on Monday and are trading at $53.89.

According to job postings found by Recode, Amazon is looking to expand their network of installation professionals across the nation. Right now, the company will send a technician to your home for about $99, if you live in one of several West Coast cities.

Amazon is also rolling out free smart-home consultations as well, where technicians will demonstrate the various capabilities of smart home devices. The services are highly rated according to Amazon's information page.

Best Buy is up 25.32% this year, even after Monday's decline. The company is trading at $53.94. Amazon is trading 0.83% higher at $987.79.