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One Click Retail: Amazon’s online furniture category sales soar

Amazon’s furniture sales are at an all-time high.

In addition to holding the largest market share in the online furniture category, Amazon has more than tripled its annual furniture sales since 2015, according to “Furniture: The Amazon Effect,” a report from One Click Retail.

According to data, Amazon’s furniture sales were an estimated $4 billion in 2017, representing more than 51% growth year-over-year. The company is grabbing sales through a methodical approach, one that includes a curated site, Amazon Home, which enables customers to shop by room, look, home decor, specific items, or category, such as kitchen & dining, bed & bath, garden & outdoor.

The online giant also has four new warehouses focused on delivering large furniture and appliances, and released two private furniture brands, Rivet and Stone & Beam. In addition, the average price of the leading furniture items sold on Amazon is the lowest among the top eight furniture retailers in the United States, according to the study.

Mattresses is Amazon's largest furniture category, by far. In 2017, mattress sales reached an estimated $1.1 billion, an increase of 82% compared to 2016. Bedroom furniture came in second with $800 million in sales, and YoY growth of 45%.

Living room furniture is the third largest category, growing by 40% in 2017 to a value of $550 million. There are no single brands that hold more than 6% of the category's sales (together, the seven leading brands hold less than 50% of the category). This combination of high sales volume, rapid category growth, and lack of a major dominant competitor means that living room furniture is a great target category for furniture brands looking to enter the online market, according to the study.

The last two top furniture categories were home office furniture, at $500 million, and 27% YoY growth, and kitchen furniture, which equated to $350 million in sales, a YoY climb of 27%.

Amazon’s two private label furniture brands, Rivet and Stone & Beam, also continue to build steam, which points to Amazon’s aspirations as a major player in the furniture space.

“It's clear that the furniture market is a valuable investment for Amazon, and it's equally true that Amazon is a valuable investment for furniture brands,” according to the study.

The online giant’s most successful furniture products so far are office chairs from AmazonBasics — which is the leading brand in the home office furniture category. Sales of AmazonBasics office chairs grew steadily throughout early 2017, but accelerated with the help of strategic promotions on Prime Day. So far in 2018, AmazonBasics controls about 13% of all 1P home office furniture sales, and had the top three items in the category with their high, mid, and mesh-backed office chairs.

“The company already holds the largest market share of online furniture sales and is likely to capture the bulk of future growth in the long term,” the study added. “Furniture brands looking to compete in e-commerce, the industry's fastest-growing space, need to begin at Amazon.”
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