Why More Furniture Will Continue To Be Sold Online After The Pandemic – SURFACE
What’s happening: Amazon is making its first foray into furniture assembly. While the e-commerce giant is currently shipping large items like mattresses, treadmills, and televisions, customers are often disappointed when they leave huge boxes of furniture they don’t want to assemble themselves. The new premium service requires drivers not only to deliver furniture, but also to build it, remove excess packaging and return items if the customer is not satisfied.
The download: If this new company is widely accepted, there will be tension with other online furniture makers like Wayfair who have a comparable range of furniture. Online furniture and housewares sales rose 41 percent to $ 36.1 billion during the pandemic. While Wayfair shares fell nearly 4 percent before making up some of their losses, Amazon shares were largely unchanged. Sales are expected to continue growing, albeit at a slower pace, to $ 37.3 billion in 2021.
The recent surge in furniture e-commerce demand has resulted in significant backlogs and weeks of delays. In an effort to grow sales this year, Amazon’s efforts provide an opportunity to restore its reputation for delivering such large items quickly
Experts predict that furniture sales will account for over 14% of total e-commerce retail sales by 2022.
In their own words: “Ecommerce adoption is likely to continue to postpone faster than it was before Covid,” Wayfair CEO Niraj Shah told Business Insider in August. “To put things in perspective, we activated more than five million net new customers in the quarter than in the last four quarters combined. We see this in strong and consistent demand in nearly all of the product classes we sell, not just those that are directly related to being able to take shelter or work from home. “
Surface says: Expect this trend to continue to grow as people feel more comfortable making large purchases such as cars, homes, and even nonexistent NFT homes.