Benzinga | Apr 16, 2021 02:19PM EDT

Amazon Targets Furniture Assembly Service To Take Wayfair Pie: Bloomberg

* Amazon.Com (NASDAQ: 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 (NYSE: W), Best Buy Co Inc (NYSE: BBY), Home Depot Inc (NYSE: HD) and Lowe's Companies Inc (NYSE: LOW), Bloomberg 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.