2020 has been a roller coaster of a year, but if you’re a home furnishings vendor that has a developed Ecommerce sales channel, it may have been the silver lining. ESP’s clients are up anywhere from 75% to 150% year over year. Since March 2020 the impact of COVID-19 has been dramatic on both the accelerated growth of the Ecommerce Channel and the demand for home furnishings.
COVID-19’s shelter in place requirements forced most Brick and Mortar retail stores to close for 60 – 90 days. Retailers who had a meaningful online presence were allowed to continue to operate online. Since a large portion of the workforce was required to work from home and the ability of consumers to maintain a social life outside of the home was diminished, the demand for home furnishings, home renovation, and all products associated with use in the home have seen dramatic sales increases. Below are some key statistics.
Key Ecommerce Sales Statistics:
- Q2 Ecommerce sales up 44% YoY
- $63.5 Billion Ecommerce Sales in Q2
- Since March Consumers have spent an additional $94 Billion online
- Wayfair’s Q2 total net revenue increased $2.0 billion to $4.3 billion, up 83.7% year over year
- Wayfair turned their first profit since they went public with a Q2 net income of $273.9 million
- Amazon’s Q2 net sales increasing 40% to $88.9 billion in the second quarter and Q2 net income increasing to $5.2 billion, double that of Q2 2019
These numbers are staggering but the growth trend is clear that consumers are becoming more comfortable purchasing online.
Ecommerce Home Furnishings Growth was already Strong
Ecommerce had already become a pillar of many home furnishings brands’ strategy. During the past 8 years the Home Furnishings Ecommerce channel has grown by 100%, from 8% to 17% of the market.
This is being fueled by increased demand for furniture to accommodate smaller living spaces, frequent consumer relocation, affordability for younger consumers as they enter the market, enhanced technology such as Augmented Reality and Virtual Reality leading to increased adoption of online shopping, enhanced supply chain/fulfillment capability of small and large parcel drop ship goods to the consumer, and increased sophistication and growth of online retailers, adoption of best practice online marketing strategies to the home furnishings category.
Now it’s More Important Than Ever to Meet Consumers Where They Prefer to Shop
Eight out of every 10 purchases start online. Of those 90% are starting on Amazon/Wayfair for Home Furnishings. As consumer behavior shifts further toward a preference for online shopping, it is more important than ever to have your brand front and center with high quality rich product content and digital assets where customers start their shopping journey, even if a majority of them will still purchase in the store.
In today’s digital world manufacturers are being asked not only to develop high quality products but also to produce best in class content that is compelling online. This doesn’t mean only traditional imaging and copy. Brands should be developing WayMore & Amazon A+ Content and 3D imaging. 3D imaging will become even more important as social distancing makes trade shows more difficult and brands need a new avenue to get their product in front of buyers.
In order to stay relevant the time is now to develop your brands digital strategy and we at Ecommerce Sales Partners are here to help.