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Amazon Makes a Big Bet on Furniture Delivery

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Amazon.com, Inc. (NASDAQ: AMZN ) is reportedly planning to make a big bet on furniture delivery.

Amazon Makes a Big Bet on Furniture Delivery

Source: Amazon

According to unnamed sources, the online retailer is planning to focus more on furniture sales. Amazon.com, Inc. is likely trying to catch a piece of the online-furniture-market pie, which has been growing quickly these last few years.

Amazon.com, Inc.'s plans to invest in furniture sales include building four new warehouses. These warehouses will reportedly specialize in handling the shipping of bulky items, such as furniture. The shift in focus comes as online sales make up 15% of all furniture sales .

Veenu Taneja, Amazon.com, Inc.'s Furniture General Manager, has also said that the company wants to focus more on the market. He says that it is looking to add more products, custom design options and faster shipping, reports MarketWatch .

One of the major hurdles that Amazon.com, Inc. will have to overcome with its focus on furniture is delivery. The products aren't as easy to ship as most of the other items it sells and this may be a problem. Shipping companies, such as FedEx Corporation (NYSE: FDX ), also aren't keen on shipping furniture due to how much room the items take up in trucks.

Wayfair Inc (NYSE: W ) will be one of Amazon.com, Inc.'s big competitors in the online furniture market. However, it is not worried about AMZN. CEO Niraj Shah says that getting the customer service aspect of the business right can be tough. He also said that the company isn't a new challenger to its sales, reports Fox Business Network .

AMZN stock was up 1% as of Friday afternoon.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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