Amazon might be moving into wearables and Internet-enabled "smart home" appliances like one-button devices for ordering supplies, according to Reuters. In addition, the company is reportedly looking to increase its hardware-oriented Lab126 division's roster of employees to at least 3,757 over the next five years, raising it by 27 percent.

Lab126 is interested in wearable devices Reuters writes that the company aims to invest $55 million in Lab126, and will see $1.2 million in tax breaks should it increase staffing in the Sillicon Valley-based operation. One of Reuters' anonymous sources says that Amazon is testing a Wi-Fi device that will allow users to make purchases by pressing a button, while the other claims that Lab126 is interested in wearable technology. Both, however, were quick to stress that these experiments might not enter the market.

While nothing is finalized, one source reports that Amazon "envisions homes decked out with Internet-connected sensors that would allow it to tell customers ahead of time when they need to replace air conditioner filters or service their washing machines." The news provides unusual insight on Amazon's famously secretive lab.