Amazon launches new service to boost sales in $37.3 billion furniture market

During the COVID-19 pandemic, as millions of people worked and studied from home, demand for larger items such as desks and office chairs rose sharply, and consumers became more willing to buy big-ticket items online.

Online sales of furniture and home goods grew 41% to $36.1 billion in 2020, according to Coresight Research. Sales are expected to grow at a slower pace this year, but will still reach $37.3 billion.

A surge in demand for big-ticket items has caused delivery jams and weeks-long delays, creating an opportunity for Amazon to bring its fast delivery to sales of bulky goods like furniture.

If the service is widely adopted, it will help Amazon compete more effectively with Wayfair, Best Buy, Home Depot and Lowe's, which all have similar services. Amazon has been catching up with Wayfair, which replaced Amazon as the largest online home goods retailer in the United States in 2019, according to 1010 Data.

People familiar with the matter said Amazon is planning to launch the installation service in Virginia and two other states. According to a report by Bloomberg, the new service requires drivers to unpack and assemble items according to the consumer's wishes when the goods are delivered. If the consumer is not satisfied, the goods will be recycled on the spot.

The service will help boost sales of Amazon's larger items, which previously required customers to contact someone else to come to their homes to help assemble.

Amazon will reportedly train its delivery drivers to assemble appliances such as washers, dryers and dishwashers, posing a threat to Home Depot, Lowe's and Best Buy, which also offer installation services.

However, in online chat rooms, Amazon drivers are discouraged by the new service. Some worry about insufficient training, some worry that Amazon will schedule training during unreasonable working hours, and some are afraid of contracting the new coronavirus. A driver in Virginia said: "The company has not taken into account crowded houses and narrow stairs, which may extend the time required for delivery."

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