Amazon's New Private-Label Furniture Business: Everything You Should Know
Amazon.com, Inc. (NASDAQ: AMZN) confirmed this week what many expected: an entrance into the furniture market. The online ecommerce giant that now has a physical retail space through its acquisition of Whole Foods officially launched two furniture brands.
What You Need To Know: Amazon's first furniture brand is called Rivet and described as a mid-century modern line that's targeted towards millennials, Curbed reported. The second line, Stone & Beam, is targeting families at a higher price point.
Both lines will focus on living room furniture and decor and will be sold with free shipping under the Amazon Prime program.
Why It's Important: Amazon's landing pages for its two new furniture brands places a particular emphasis on photography with at least four photos per item and dimensions, KeyBanc Capital Markets' Edward Yruma said in a brief report. This is similar to Amazon's apparel pages but with a "significant focus" on curation and feature selected picks.
Of particular note, Amazon's delivery window is likely "generally comparable, if not better," than Wayfair Inc (NYSE: W).
What's Next: Amazon's focus on its own private label brand marks an "important component" of improving its margin structure, the analyst wrote.
What impact, if any, Amazon's entrance into the furniture market has on Wayfair's business has yet to be seen but investors should be keeping a particularly close eye.
Related Links:
A Guide To Guessing Where Amazon Is Going
Wayfair Is Set To 'Amazon' The Home Furnishing Category
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