Amazon Targets Furniture Assembly Service To Take Wayfair Pie: Bloomberg

  • Amazon.Com AMZN is testing a premium service that enables customers to assemble furniture or appliances on home arrival, intensifying war with the likes of Wayfair Inc WBest Buy Co Inc BBYHome Depot Inc HD and Lowe’s Companies Inc LOWBloomberg reports.
  • Amazon is planning to launch the service in Virginia and two other markets.
  • Amazon’s present big item deliveries have disappointed customers due to their unassembled delivery status.
  • The new service includes the item unpacking and assembling, packaging removal, and on-spot product return by the driver in case of a non-satisfaction, based on a Bloomberg reviewed presentation. Previously, customers had to schedule a different contractor to come to their home at an additional time to assemble the product.
  • Drivers’ washing machine, dryer, and dishwasher installation training posed a threat to Home Depot, Lowe’s, and Best Buy’s similar services.
  • The new offering was available in a limited number of cities. The service enabled customers to hire contractors through the website to assemble furniture or install ceiling fans and wall-mounted televisions.
  • The service is intended to make delivery more inexpensive and easier for Amazon.
  • Demand for bigger items like desks and office chairs had spiked during the pandemic from higher remote activities. Shoppers also became used to buying big-ticket items online.
  • Online sales of furniture and housewares soared 41% in 2020 to $36.1 billion. Sales worth $37.3 billion were estimated in 2021. The demand spike for oversized items fueled delivery logjams and weeks-long delays, generating an opportunity for Amazon.
  • Amazon has private-label furniture brands. The company launched the virtual reality shopping feature Showroom in 2019.
  • Price action: W shares traded lower by 0.60% at $319.18 on the last check Friday.
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