Furniture is one the fastest-growing retail categories on Amazon – and that is saying a lot, with the platform showing record-high growth across almost all product groups. In the 2015 calendar year, online furniture sales grew by 18% to reach a 15% share of the $70 billion U.S. furniture market. Year-to-date in 2017, Amazon is scooping up more of that market share, with our data showing a growth rate of 50% year-over-year.

The Numbers

  • $70 billion: Total 2016 U.S. furniture sales.
  • $2.3 billion: com 2016 Furniture sales.
  • $2 billion: com 2017 YTD Furniture sales.
  • 50%: YoY growth of Amazon.com Furniture sales.

Amazon-Furniture-YoY-Revenue-data

According to Morgan Stanley, Amazon enjoys a 17% market share of home furnishings, a retail category including (in addition to furniture) bedding and décor, among other things. Furniture, however, is only a small subset of that share, with Amazon facing stiff competition from Wayfair and Overstock.com, two powerhouses of online furniture sales. In the countries where it operates, Wayfair is the clear e-commerce leader and is not going away anytime soon: in Q1 2017, the retailer’s sales grew by 32% and total active customers grew by 46% YoY.

But Amazon is not content in second place. In May, the Wall Street Journal detailed Amazon’s redoubled efforts to compete in furniture. The strategy includes building new warehouses, introducing new pricing standards for marketplace furniture sellers, and the launch of Amazon Home.Amazon-Furniture-Sales-Revenue-Data

Furniture US Top Categories 2017 YTD

Top CategoriesTop SubcategoriesSalesGrowth
Mattresses & Mattress Frames

$640M

90%
Foam Mattresses$290M

300%
Bedroom Furniture

$305M50%
Headboards & Beds$215M60%
Living Room Furniture$260M45%
TV Stands/Entertainment Centers$60M60%
Home Office Furniture$230M35%
Miscellaneous$150M35%
Kitchen Furniture$155M35%
Bars & Bar Stools$70M35%

Amazon Home

22 years ago, Amazon began life as an online bookseller. On the road to becoming the largest internet-based retailer in the world, Amazon has expanded across dozens of industries and become a market leader in countless retail categories. But Amazon is not perfect – for some product groups which may have at one time been considered “e-commerce proof,” Amazon didn’t act fast enough, allowing savvy innovators to corner the market. For furniture, this innovator was Wayfair, currently the largest online furniture retailer.

Amazon has now committed to competing with the standards Wayfair has set. Brands selling through Amazon can now set their own prices, varying based on the delivery method chosen by the customer. White glove delivery is the minimum, with options for placement, assembly, and the removal of old furniture. And Amazon has recently launched Amazon Home, an interactive shopping portal which entices customers with price comparison and added services and conveniences including the ability to browse by whichever room you are furnishing.Amazon-Furniture-international-revenue-data

Furniture 2017 Sales: International Comparison

Germany 2017 YTDSalesCanada 2017 YTDSales
DE YTD Sales€90MCA YTD Sales$30M
Home Office Furniture €25MMattresses & Mattress Frames$10M
Mattresses & Mattress Frames€20MLiving Room Furniture $5M
Living Room Furniture €10MBedroom Furniture $5M
Bedroom Furniture€5M Home Office Furniture $5M
Entryway Furniture€5M Kitchen Furniture$2M

What’s mainly driving Amazon’s furniture sales is mattresses, the top category by far in the U.S. and Canada with double the sales of the next bestselling category, and the runner-up in Germany behind only Home Office. Zinus is the leading brand, with their memory foam mattresses being the bestselling items in the U.S. and Canada and 9 out of the top 15 items in the U.S. In both countries, queen-sized mattresses (most common) and king are more popular than smaller sizes, suggesting that consumers are more likely to turn to Amazon for items that may be difficult to fit into a vehicle.

Mattresses dominate across brands, with Tuft & Needle Queen and King sized mattresses being the two top non-Zinus items in the U.S. AmazonBasics provides one of the top selling mattresses in Germany, while in the U.S. and Canada that brand is more well known for its desk chairs. Overall, desk chairs are the most popular item after mattresses in both of those countries and is the top selling piece of furniture in Germany, where DX Racer brand gaming chairs represent the first, second and fourth bestselling item YTD in 2017.Amazon-Furniture-Top-US-Revenue-Items

Furniture: US Top Items 2017 YTD

CategoryTitle
Mattresses & Mattress FramesZinus Memory Foam 12 Inch Green Tea Mattress, Queen
Mattresses & Mattress FramesTuft & Needle Mattress, Queen
Mattresses & Mattress FramesZinus 12 Inch Gel-Infused Green Tea Memory Foam Mattress, Queen
Mattresses & Mattress FramesZinus Memory Foam 12 Inch Green Tea Mattress, King
Mattresses & Mattress FramesZinus Memory Foam 12 Inch / Premium / Ultra Plush / Cloud-like Mattress
Mattresses & Mattress FramesTuft & Needle Mattress, King
Mattresses & Mattress FramesZinus Memory Foam 12 Inch Green Tea Mattress, Full
Bedroom FurnitureZinus 14 Inch SmartBase Mattress Foundation / Platform Bed Frame
Mattresses & Mattress FramesZinus 12 Inch Gel-Infused Green Tea Memory Foam Mattress, King
Home Office FurnitureAmazonBasics High-Back Executive Chair - Black

Amazon-Furniture-International-Top-Categories

Furniture: Germany Top Items 2017 YTD

CategoryTitle
Home Office FurnitureDX Racer1, Bürostuhl, Gaming Stuhl, Schreibtischstuhl
Home Office FurnitureDX Racer5 Gaming Stuhl, Schreibtischstuhl, Bürostuhl
Home Office Furniture Topstar OP290UG20 Syncro-Bandscheiben-Drehstuhl Open Point
Home Office Furniture DX Racer6 Gaming Stuhl, Schreibtischstuhl, Bürostuhl
Mattresses & Mattress FramesTAURO 22914 7-Zonen Lattenrost 90x200 cm

Furniture: Canada Top Items 2017 YTD

CategoryTitle
Mattresses & Mattress FramesZinus Memory Foam 12 Inch Green Tea Mattress, Queen
Mattresses & Mattress FramesClassic Brands Cool 8-Inch Gel Memory Foam Mattress, Queen
Mattresses & Mattress FramesAdjustable Comfort Adjustable Bed Base with Wireless Remote
Mattresses & Mattress FramesLeesa Mattress, Queen
Mattresses & Mattress FramesSleep Master Gel Memory Foam 2 Inch Topper, Queen

Millennials and Furniture

It’s an understatement to say that millennials have had a significant effect on retail; in furniture, however, this effect is especially dramatic. Millennials are now the major furniture-buying demographic and naturally their buying habits are different from those of previous generations. Because millennials are more likely to be long-term renters and/or live urban lifestyles, they gravitate toward smaller, multifunctional furniture and are less likely to buy sets. They are an individualistic generation with a great interest in unique and customizable pieces, and are also more influenced by a brand’s environmental and ethical values. And of course, they are more likely to shop on Amazon.

Like all retail segments, the furniture market is not immune to the Amazon Effect. As the marketplace redoubles its efforts to compete against Wayfair and other discount furniture etailers, it’s likely to be one of the (if not the) choice destinations of furniture buyers for decades to come. Amazon’s latest developments in this product group have proven their ability to compete on price, customer experience and convenience, as well as keep up with rapidly growing demand. Brands selling through Amazon will benefit greatly from their pricing flexibility as well as the trust and loyalty that is has earned from its user base.

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