Tags: Amazon | Major | Push | Furniture

WSJ: Amazon Makes Major Push Into Furniture

WSJ: Amazon Makes Major Push Into Furniture
Daniel Draghici | Dreamstime.com

By    |   Friday, 12 May 2017 09:55 AM

Online retail giant Amazon.com Inc. reportedly is making a major push into furniture and appliances, including building at least four massive warehouses focused on fulfilling and delivering bulky items.

The Seattle-based retailer “is taking on the two companies that dominate online furniture sales” — Wayfair Inc. and Pottery Barn owner Williams-Sonoma Inc., The Wall Street Journal reported.

Furniture is one of the fastest-growing segments of U.S. online retail, growing 18% in 2015, second only to groceries, according to Barclays. About 15% of the $70 billion U.S. furniture market has moved online, researcher IBISWorld says.

“But even the biggest players in online furniture are struggling to get the market right. Unlike established categories such as books and music or even apparel, retailers are still hammering out basic concepts like how much variety to offer on their sites and the most efficient ways to deliver couches and dining sets to customers’ homes,” the Journal explained.

While Amazon has been selling furniture for years, it has lately decided to tackle the sector more forcefully, the Journal reported.

“Furniture is one of the fastest-growing retail categories here at Amazon,” said Veenu Taneja, furniture general manager at Amazon, in a statement. He said the company is expanding its selection of products, with offerings including Ashley Furniture sofas and Jonathan Adler home décor, and it is adding custom-furniture design services. Amazon is also speeding up delivery to one or two days in some cities, he added.

Amazon keeps attacking rivals on nearly every conceivable front.

Amazon owered its free shipping threshold to $25 from $35, undercutting Wal-Mart Stores Inc. by $10 and escalating a battle between the world’s e-commerce leader and the world’s biggest retailer, Bloomberg reported.

The new minimum shows Amazon competing for shoppers who don’t pay $99-a-year for Amazon Prime, which includes free two-day shipping on millions of items as well as access to music and video. These customers are the Seattle-based company’s most loyal shoppers. Amazon will make non-Prime shoppers wait 5 to 8 business days for free shipping on more than 50 million items.

Wal-Mart in January made a big push against Amazon Prime when the Bentonville, Arkansas-based retail giant offered free two-day shipping without a membership fee on orders of at least $35 while expanding its online marketplace inventory to include millions of items.

The company last year acquired startup Jet.com for $3.3 billion in cash and stock and put its management team in charge of the online operation to strengthen its e-commerce business against Amazon. A company representative declined to comment on Amazon’s price move.

(Newsmax wire services and Reuters and Bloomberg contributed to this report).

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
Online retail giant Amazon reportedly is making a major push into furniture and appliances, including building at least four massive warehouses focused on fulfilling and delivering bulky items.
Amazon, Major, Push, Furniture
435
2017-55-12
Friday, 12 May 2017 09:55 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved