Xin Ou
Research expert covering Greater China
Furniture e-commerce in the United States - statistics & facts
Although typically done in brick-and-mortar stores, buying furniture online has become a developed segment in the e-commerce world. In the United States, furniture and homeware e-commerce generated around 120 billion U.S. dollars in 2023. In the same year, sales in this sector accounted for nine percent of total retail e-commerce in the country. And while the share of online sales is projected to steadily decrease in the next few years, the furniture e-commerce category overall still has a compound annual growth rate of 8.5 percent.
Still, the world of furniture online shopping has ample potential for growth in spite of the market’s declining sales as return rates in this product category are quite low. Only eight percent of U.S. digital buyers returned furniture or household items purchased online in the previous 12 months, compared to 24 percent of online fashion shoppers, the segment with the highest percentage of online returns.
Other companies that offer online options to consumers, like IKEA and Overstock, were also well known among online shoppers. Nearly half of surveyed furniture e-commerce users reported that they liked IKEA, while 20 percent felt the same about Overstock.
Ultimately, it is up to retailers to make their potential buyers feel comfortable about shopping online for home goods. While this feat has proven difficult through online channels, innovative technologies like augmented reality (AR) that allow online shoppers to view furniture products in the comfort of their homes, may help to solve this problem.
Mainstream furniture e-commerce is yet to come
In comparison to offline channels and the near double revenue generated by brick-and-mortar furniture retail, however, furniture e-commerce still has a long way to go. In 2024, only about one in ten consumers in the United States bought furniture and household goods online. Hesitance to shop for furniture on the internet may be resultant of the lack of ability to touch or feel items, and thus the subsequent inability to ensure an acceptable quality level prior to potentially making a big ticket purchase.Still, the world of furniture online shopping has ample potential for growth in spite of the market’s declining sales as return rates in this product category are quite low. Only eight percent of U.S. digital buyers returned furniture or household items purchased online in the previous 12 months, compared to 24 percent of online fashion shoppers, the segment with the highest percentage of online returns.
Main player outlook
In the U.S., there are a handful of well-known brands that have managed to find success in the world of furniture e-commerce. For example, Wayfair, with a revenue of nearly 12 billion U.S. dollars, was recognized by nearly eight in ten U.S. online furniture shoppers in a 2023 brand profile survey. The Home Depot, one of the leading retailers in the U.S., reported that around 15 percent of their total sales were made online.Other companies that offer online options to consumers, like IKEA and Overstock, were also well known among online shoppers. Nearly half of surveyed furniture e-commerce users reported that they liked IKEA, while 20 percent felt the same about Overstock.
Ultimately, it is up to retailers to make their potential buyers feel comfortable about shopping online for home goods. While this feat has proven difficult through online channels, innovative technologies like augmented reality (AR) that allow online shoppers to view furniture products in the comfort of their homes, may help to solve this problem.
