Amazon Strikes Again: The Dressing Room in Your House

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Customers have seven days to decide what they like and only pay for what they keep.

Amazon is jumping into the clothing subscription service with the likes of StitchFix, LeTote and the Trunk Club.

Retail stocks fell on June 20, 2017, in reaction to Amazon's (AMZN) new service-Prime Wardrobe.

The company's clothing and accessory sales are expected to grow almost 30 per cent next year, to US$28 billion, according to the Cowen analysts.

As Amazon's sales grow, so will its share of the apparel market in the US.

Amazon now claims about 6.6 per cent of the market. Department store return policies for online orders can be generous, but people don't get to try things on before buying.

"This is another attempt for Amazon to win in apparel", she said.

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The service comes shortly after Amazon revealed Echo Look, its new voice-enabled assistant that will rate your outfit choices. Will worn items be sold as second-hand through Amazon Warehouse?

Over the past couple of years, Amazon has ramped up its investment in fashion by launching its own private-label clothing brands and sponsoring the first NY men's fashion week.

Also in the past few years, Amazon has started to shift its fashion strategy toward offering more high-end designer names such as Zac Posen and Stuart Weitzman.

A free pick-up service will take away any unwanted items (customers need only put the items back in the resealable Prime Wardrobe box, apply the pre-printed returns sticker and leave it on their doorstep) and, as an added incentive, they will receive a 10% discount on three-four items purchased or a 20% discount on five or more.

Department stores have been struggling over the past few quarters as competition from online retailers such as Amazon intensifies.

Amazon is also growing its streaming service.

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