• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechAmazon

Amazon Places a Bigger Bet on Furniture

By
Leena Rao
Leena Rao
By
Leena Rao
Leena Rao
May 15, 2017, 1:24 PM ET

Amazon has sometimes been called “The Everything Store” for its huge selection of products. But it has a few holes in its lineup like furniture, a field that has been dominated by brick and mortar retailers like Pottery Barn and Crate & Barrel along with online merchants like Wayfair (“W”) and Overstock.com.

Amazon now appears to be doubling down on furniture as it eyes taking a bigger piece of the $150 billion market, according to a new report from the Wall Street Journal. The company is opening a number of new warehouses to store and ship furniture as well as expanding its inventory of furniture and home goods.

There’s good reason Amazon (“AMZN”) wants to expand its furniture footprint. U.S. online furniture sales grew 18% in 2015, making it one of the strongest categories in e-commerce, according to Barclays.

Get Data Sheet, Fortune’s technology newsletter.

Veenu Taneja, general manager of furniture at Amazon, told The Wall Street Journal that the segment is one of the fastest growing retail categories at Amazon. The company has an estimated 17% market share in home furnishings, according to Morgan Stanley.

But for the company to gain ground, it needs to be more aggressive in offering a wider variety of furniture and home goods, ensure faster shipping to customers, and offer a greater selection. The company has also reportedly built four new warehouses for bulky items like furniture.

Taneja confirmed that the e-commerce giant would add more inventory like sofas, and that it would also let customers design their own sofas, and other types of furniture. In some cities, the company will try to guarantee one to two-day shipping for furniture items.

For more on Amazon, watch:

Delivering furniture is more complicated than selling books and toys, which can be easily packed and shipped directly to customers’ doors. Many furniture retailers also offer “white-glove” delivery, which involves workers delivering furniture to homes and then assembling it.

Because of its size, furniture requires a lot more effort and cost in terms of logistics. Amazon is likely to rely on third-party companies to provide some of that work, according to the report.

About the Author
By Leena Rao
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.