This is just fine for the price. It assembles in 4 pieces with the side arms and back sliding into brackets on the seat cushion. Other sofas at this price point have full finished back pieces. This one has a flap of fabric that needs to be pulled down the back of the seat and attched via velcro. Its ultra cheap execution. If it is placed with back to the wall it is no big deal though.
The fabric is polyester, not velvet but that is clear from the photo. Fabric is just fine and the stitching quality is good.
The seat cushion is somewhat firm but comfortable enough, the back cushions are softer.  Overall, fine considering the sub $300 price.