Two primary reasons that have contributed to this industry’s growth are high-margin products and less competition due to high entry barriers. Furniture and home décor items are expensive products, and the profit margins can be as high as 40%! Therefore, companies earn great revenue even after deducting shipping and other costs. While the margins are high, it is not an easy model to replicate because of the huge initial investment and emphasis on good quality & design. Therefore, the space is still not crowded unlike other ecommerce categories.

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