Strength in segment creates challenges, opportunities for retailers in the year ahead and beyond
WASHINGTON — E-commerce sales rose in the third quarter compared to the same period a year earlier, the U.S. Department of Commerce reported last month, although the overall percentage growth in the segment was lower than in 2024.
Overall e-commerce sales totaled $310.3 billion, or about 16.4% of the estimated $1.9 trillion in sales through the first nine months of 2025. This compared to $295.2 billion, or 16.2% of the overall $1.8 trillion in retail sales through the first nine months of 2024.
Tthe growth in the segment was actually slower than last year as sales only rose 5.1% compared with 7.3% in the third quarter of 2024. Still, this outpaced the 4.1% overall growth in retail sales through the third quarter of 2025 and the estimated 2% growth the same period in 2024.
The report tracks the order/sales of goods and services made through a computer, mobile device or other online system. In many cases, payment is made online through a debit or credit card.
The tricky part is knowing exactly how much furniture sales represent of the total. That’s largely because the DOC lumps furniture, building materials and electronics in the same bucket.
Combined, e-commerce sales in these segments totaled $30.6 billion, or 14.7% of the $208.5 billion total in these segments through the third quarter. This compares with a total of $38.5 billion in e-commerce sales, or 13.7% of the $208.1 billion the same period a year earlier.
As the report shows no comparable figures for furniture sales specifically, it is hard to determine what percentage of the overall total it represents.
Some sources such as e-commerce market specialist ECDB estimate that e-commerce represented some $68.8 billion, or 40% of the estimated $172 billion in U.S. furniture retail sales in 2024. It predicted growth between 5% and 10% this year, which eclipses the estimated 3.8% growth in furniture store sales the first 10 months of the year.
Other sources have different estimates for online furniture sales, making the figures ambiguous at best, particularly for an industry that seeks clarity when it comes to channels of distribution.
But clearly, given the amount of business done on platforms such as Amazon, Wayfair and other e-commerce platforms, it’s clear that e-commerce is here to stay, although there are some categories such as upholstery and bedding where people want to see and feel the product in-store before making their purchase. This was backed up by our latest round of Consumer Insights Now research that showed 79% of sofa purchases are made in-store along with 67% of mattress purchases.
Even larger numbers of younger consumers, estimated around 82%, shopped categories such as bedroom on Amazon. online. Overall For example, some 45% of those surveyed purchased their primary bedroom furniture online compared with 55% who said they purchased in-store.
And while seven of 10 consumers said they prefer to shop for furniture in-store, the balance said they preferred to shop online for several key reasons, including selection, convenience and better deals. They also liked that they did not face pressure from salespeople and were able to access product reviews and other information before making their selection.
And not surprisingly, higher percentages of younger consumers said they preferred to shop online versus in-store, citing fast and free delivery along with the convenience of shopping from one’s home as other key factors in the online shopping experience.
While the jury is still out how e-commerce fared for the entire year, its appeal remains widespread among more and more consumers, including younger consumers whose spending power will only increase.
The question for the year ahead and beyond: Is your store positioned to compete in this realm? Having a great selection and presentation on the floor is just part of the equation. Having the ease of access, information and selection online is another key ingredient that will keep your business vibrant now and in the future.
