Made.com, the online furniture specialist backed by Lastminute.com co-founder Brent Hoberman, is the latest etailer to explore an IPO.
Made.com is understood to have held talks with City advisers in recent weeks, according to The Sunday Times.
The etailer is looking to use the potential cash raised to speed up its European expansion. It already operates in the UK, France and Italy.
Made.com has not made a final decision on whether to float and could opt to raise cash from venture capital investors instead.
If it presses ahead with the float, it will join electricals etailer Ao.com, which floated at £1.2bn, and fashion site Boohoo.com, which was valued at over £500m.
Made.com, which is four years old, allows shoppers to buy furniture direct from suppliers.