Two web-only merchants—Wayfair Inc. and Amazon.com Inc.—together capture 63% of online furniture sales, according to data analytics firm 1010data, which tracks online sales via credit and debit card transitions.
In 2019, Wayfair had the largest market share with 33.4% of online furniture sales; Amazon came in second at 29.7% market share. The next-closest retailer was Walmart.com, with only 4.7% of the online furniture market. Market share does not equal 100% because of many smaller retailers making up the remaining share, according to 1010data.
This is a slight shift from 2018, when Amazon was the largest online furniture seller with 31.1% of the market, and Wayfair was No. 2 with 28.2%. However, Wayfair.com (No. 12 in the 2019 Digital Commerce 360 Top 1000) grew its online furniture sales 34.1% year over year, while Amazon (No. 1) only grew 8.0% in this category, according to 1010data.
What Amazon.com and Wayfair.com have offered from the start—a large selection that would be impossible to replicate in stores—is fueling ecommerce growth in this category, says Matt Pace, senior director at 1010data.
“To compete with the selection offered by online-only merchants, bricks-and-mortar merchants have shifted to carrying only a fraction of their inventory in-store, and instead are driving consumers to shop online,” Pace says.
Store-based retailers, especially ones that sell other goods besides furniture such as Home Depot Inc. (No. 7) and Macy’s Inc. (No. 5), will only show a fraction of their furniture in stores and will encourage shoppers with in-store displays and catalogs to alert shoppers that an expanded assortment and other colors are available online, Pace says.
“In this era of continued physical store closings and shrinking store formats, furniture—in all its varied styles, colors and varieties—is an incredibly large, expensive and slow-moving category to try and display in-store,” Pace says.
Wayfair was only one of two online furniture retailers that increased its market share in this category. Macys.com grew to 3.7% of online furniture sales in 2019, up from 3.6% in 2018. The remaining merchants did not increase their size in the market, or lost share.
Although most merchants did not gain a larger piece of the online furniture market, most did increase their online sales, according to 1010data. Wayfair led the pack with a 34.1% year-over-year increase; however, Costco.com (No. 15) also increased online furniture sales at 18.6% growth, Macys.com grew 15.7% and Walmart (No. 3) grew 12.3%.
Digital Commerce 360 estimates that the 28 leading ecommerce furniture retailers in the 2019 Digital Commerce 360 Top 1000 sold $11.31 billion online in 2018, up 34.5% from $8.41 billion in 2017. This infographic details benchmarks in the furniture category for these top 28 leading ecommerce furniture retailers.Favorite