With projections of increasing segment revenue for the upcoming years, it should be of no surprise that its year-on-year revenue growth also ranked amongst the leading categories across online commerce. Amongst the top e-retail categories in 2019, furniture e-commerce placed sixth in terms of year-on-year revenue growth right behind food & beverage sales. Additionally, the compound annual growth rate (CAGR) for the combined furniture and appliances e-commerce sales category is expected to reach 10.6 percent from the years 2017 to 2023. Amazon, one of the largest e-commerce platforms worldwide, accounted for 54 percent of U.S. online transactions in the furniture segment.
Despite these encouraging sales figures, online sales of furniture and home furnishings still have a long way to go to become mainstream. In March 2019, only 14 percent of consumers in the United States stated that they mostly bought or ordered their furniture and household goods online. Additionally, when reviewing online purchases in the past 12 months, only a fifth of U.S. consumers reported to having bought furniture and household goods through e-commerce channels. Despite low mainstream adoption there is a positive outlook for e-commerce furniture sales as online furniture purchase return rates are very low. Only five percent of online furniture buyers returned an online furniture purchase in the past 12 months, compared to 25 percent of online fashion shoppers.
With the expansion of e-commerce sales of furniture and homeware goods, the majority of consumers are still completing their online furniture purchases via desktop computers. As many shoppers are still uncomfortable to commit to big ticket purchases via mobile, it is up to retailers to make potential buyers feel more comfortable about shopping online.