Amazon declares war on Ikea: new furniture sales and assembly service in the USA

Bloomberg reports that Amazon has plans to launch a furniture delivery and assembly service for premium customers that would compete directly with retailers such as, for example, Ikea, which is already widespread in the US.

While Amazon's communications officers officially denied the news, as usual, extremely specific details about the program suggest the company is moving forward with a limited rollout with ongoing projects nationwide in the United States.

The solution allows customers not only to buy furniture, but also to pay for it to be assembled (a task that is often too much to handle for spoiled and "stressed" American millennials and Generation Z).

Until now, the market for simple, affordable furniture and “Style” if we can speak of style, was practically an Ikea monopoly, but visits to Swedish mega stores are extremely stressful and often impossible during the lockdown. If there was an equivalent service on Amazon, including transport and assembly, this would prove to be a potential big competitor for the Swedish chain.

According to Bloomberg, the delivery driver will also assemble furniture or install appliances, and will do this for everything from cabinets to dishwashers. And if the customer is not satisfied with the product at that time, the driver can initiate the return. Amazon plans to introduce the service in Northern Virginia before expanding it nationwide.

The new service requires drivers to unpack and assemble items, unpack and bring the item back if the customer is dissatisfied, according to a revised presentation by Bloomberg. In the US, this solution would not only threaten IKEA, but also chains such as Home Depot Inc., Lowe's Cos Inc. and Best Buy Co., which also sell appliances with installation services.

The new offering simplifies existing Amazon Home Services, available in a limited number of cities, and allows customers to hire contractors via the website to assemble furniture or install ceiling fans and wall-mounted televisions. The new service is designed to make delivery more convenient, cheaper, and easier for Amazon to manage, one of the people said.

Amazon plans to introduce service in Virginia and two other single-state markets The company currently offers scheduled delivery of large items, such as bunk beds and treadmills, to a specific room in a shopper's home . But customers are often disappointed when delivery workers leave purchases unassembled in boxes.

And with orders for desks, office chairs and other home office supplies on the rise thanks to the "work from home" revolution ushered in by the pandemic, there has probably never been a better time for Amazon to make a move, given that overwhelmed families are struggling to balance work and school for their children would probably pay a lot of money to avoid a nightmare trip to Ikea.

Demand for oversized home furniture, such as desks and office chairs, increased during the pandemic as millions of people retreated to their homes. Shoppers have also felt more comfortable shopping online for large items that they previously preferred to buy in a store where they can lie on the beds or sit on the sofas.

Ikea is one of the largest privately owned companies in the world, although in reality, for tax reasons, it is apparently a Dutch non-profit. It recorded global sales of over $ 45 billion in 2019 with over 375 stores in over 30 countries. So it is clear that there is a huge potential market and this can only attract competitors like Amazon.

Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now


The article Amazon declares war on Ikea: new furniture sales and assembly service in the USA comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Sat, 17 Apr 2021 06:00:03 +0000.