Brick-and-mortar vs online: choosing the right furniture retail model

Should you rent a showroom or launch online first? Each path has wins and costs. Use this guide to pick—or blend—models, then review our store blueprint and marketing-ideas guide to grow fast.

Want the best of both worlds?
Extend your showroom on Asherfield—keep 85 % →
Free online listings. Local buyers shop today.

Jump to section

Quick snapshot

Metric	Brick-and-mortar	Online-only
Start-up cost	$50,000 – $150,000 rent & build-out	$5,000 – $20,000 site & warehousing
Gross margin avg	35 % – 45 %	Similar, but higher shipping & returns cost
Conversion rate	25 % foot-traffic average	0.5 % – 2 % online
Return rate	5 % in-store	15 % online avg
Market share 2025	≈ 65 % of U.S. sales	≈ 35 % of U.S. sales

Pros and cons

Brick-and-mortar wins

Shoppers test sofas in person—cuts returns.
Higher impulse buys at checkout.
Walk-in repair & service build loyalty.
Instant trust from a physical address.

Brick-and-mortar challenges

High overhead for rent, utilities, and staff.
Limited floor space caps SKU variety.
Hours restrict sales window.

Online wins

Nationwide reach day one.
24/7 shopping; lower fixed costs.
Endless-aisle SKUs through dropship.

Online challenges

Low conversion rate (0.5 % – 2 %).
Higher return costs—three × in-store.
No touch-and-feel; buyers rely on photos.

Hybrid wins big (omnichannel)

Stores that sell both in person and online keep 89 % of customers vs 33 % for single-channel shops.

Shoppers browse online, test in store, buy where convenient.
Local delivery within two days beats pure-play rivals.
Asherfield listings add free traffic to showroom inventory.

Decision checklist

Budget. Under $20,000? Start online-first.
Target buyer. Luxury shoppers still like showrooms.
SKU size. Large case goods ship better from a local base.
Return policy. Plan for 15 % returns online.
Growth plan. Add the missing channel in year two.

Key takeaways

Brick-and-mortar wins on trust and feel; online wins on reach and cost. Blend both through Asherfield listings and an in-store experience for best 2025 results.

FAQs

Is online furniture retail really 35 % of sales? Yes—analysts project online share near 35 % by 2025.
Do returns kill profit online? Higher return costs cut margin; plan for 15 % return rate.
What converts better—store or web? Store foot traffic converts near 25 %, versus 0.5 % – 2 % online.
How do I lower online returns? Add AR room-view and detailed dimensions.
How can I test a hybrid model fast? List key SKUs on Asherfield and offer in-store pickup.