Amazon furniture sales hit US$30 million YTD in Canada
SANDY, Utah – Through to about August 5, e-commerce giant Amazon has sold some US$30 million in furniture and mattresses in Canada so far this year, according a report published by One Click Retail, a market research firm specialising in e-commerce data measurement and sales analytics based here. Total world-wide sales in those two categories were pegged at US$2.3 billion.
In this country, it uses the Amazon.ca web name.
“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,” Nathan Rigby, the report’s author said in an announcement on the firm’s web site. “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.”
Rigby noted that in 2016, furniture sales in the United States totalled US$70 billion and estimates Amazon’s take was about US$2.3 billion. Amazon’s total furniture sales for the year-to-date in 2017 are pegged at US$2 billion, which he says translates into a 50% year-over-year growth rate. He did not provide similar figures for Amazon’s performance in Canada.
The One Click report is written in U.S. dollars, so Canadian sales in Canadian dollars are somewhat higher.
“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,” Rigby wrote in his statement. “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,” he continued, pointing out that in a piece publishing this past May, the Wall Street Journal detailed Amazon’s redoubled efforts to compete in furniture, launching a strategy that includes building new warehouses, introducing new pricing standards for marketplace furniture sellers and the launch of Amazon Home.
“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,” Rigby reported. “Zinus is the leading brand, with their memory foam mattresses being the bestselling items in the U.S. and Canada and nine 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.”
In the One Click Retail report, Amazon’s furniture and mattress sales in Canada are segmented as follows:
- Mattress and mattress frames – US$10 million (C$13 million);
- Living room furniture – US$5 million (C$6.5 million);
- Bedroom furniture – US$5 million (C$6.5 million);
- Home office furniture – US$5 million (C$6.5 million); and,
- Kitchen furniture – US$2 million (C$2.6 million).
Assuming One Click’s report is reasonably accurate; Amazon’s furniture and mattress sales in Canada could be in excess of US$50 million (C$65 million) this year with a growth rate that outpaces every brick and mortar player in the country and, in all likelihood, second only to Wayfair – both in Canada and United States.