Three Trends Shaping Home, Garden and Furniture E-commerce in 2024

Furniture World News Desk on 3/21/2024

The home, garden and furniture ecommerce sector is poised for greater growth this year as it continues to be a significant category for consumers. Even amidst the ever-changing consumer preferences and economic fluctuations of last year, this retail sector has remained a steady force in the ecommerce landscape as retailers become increasingly skilled at adapting to change. 

In light of a global shift toward ecommerce, it’s no surprise that BigCommerce customers are also seeing a lift in online sales. According to the new BigCommerce 2024 Global Home, Garden and Furniture report, when comparing 2023 to 2022, home and garden retailers around the globe saw a modest year-over-year increase in gross merchandise value (GMV) of 3.25%.

Interestingly, retailers saw a 7.89% increase in global average order value (AOV) despite experiencing a slight decline of 4.3% in total number of orders placed. This suggests that retailers are adapting and making strategic pricing adjustments in response to rising costs.

As a blossoming ecommerce industry, home and garden shows enormous promise when it comes to growing online. And as a broad product category, encompassing everything from home decor and furniture to appliances and cleaning products, the home and garden industry has found some unique ways to excel online as seen in these three emerging trends. 

Omnichannel commerce proves to deliver a frictionless shopping experience

The solution to delivering a frictionless shopping experience lies in omnichannel commerce — an ecommerce approach that weaves together all business channels to create a consistent, engaging experience. From social commerce to digital wallets to curbside pickup, leveraging omnichannel commerce is a proven way to drive sales and convert customers. 

Over the last year, the omnichannel data approach made its debut, turbocharging existing omnichannel strategies that brands and retailers rely on to connect with savvy online shoppers and to stay competitive. This year, new technologies such as AI, will bolster the omnichannel model into a data feed management powerhouse giving retailers a new way to drive better ad performance and sell more products.

Houzer, one of the largest US suppliers of luxury kitchen sinks and faucets in the US, turbocharged their omnichannel growth for a third of the cost spent with AI-powered technology from data feed optimization company Feedonomics, a BigCommerce subsidiary. Houzer was able to improve the accuracy of their syndicated product catalogs resulting in a 47% increase in conversion rate, 150% increase in transactions and a 118% increase in revenue. 

Flexible payment methods are becoming a non-negotiable for many

Even in the midst of 2024’s economic uncertainties, one thing is clear: Flexible payments such as Buy Now, Pay Later (BNPL), are here to stay.

With a growth of $23.22 billion in 2022 to $30.38 billion in 2023, the rapid adoption of flexible payment options by ecommerce retailers suggests that BNPL options are not only popular, but a prerequisite for many customers. 

As shoppers navigate through financial uncertainties, offering them the opportunity to spread payments over time eases their mind when making purchases. 

By embracing flexible payment options, retailers will not only attract budget-conscious consumers but also drive conversion rates and increase average order values - strengthening their competitive edge in the market. In fact, offering a BNPL option to customers can increase ecommerce conversion rates 20-30%, according to a RBC Capital report.

AR/VR integrations are elevating customer engagement

The rise of technological advancements like augmented reality (AR) and virtual reality (VR) are revolutionizing the online shopping journey by providing an immersive experience for customers, while allowing retailers to bridge the gap between physical and digital retail environments. 

The home and garden sector is no stranger to this technology, with a Statista study revealing that 35% of shoppers aged 18 to 34 utilize AR/VR features to purchase furniture. Incorporating virtual showrooms that allow shoppers to envision products in their own homes, they move one step closer to making a purchase.

Add advanced technologies such as Gen AI, and retailers have even more power to create more personalized shopping experiences.

Despite facing headwinds in 2023, there is no doubt home, garden and furniture is a growing sector. By leveraging advanced technologies and adapting to change, brands and retailers in this space have great potential to stand out in a competitive market, grow sales and keep their customers coming back for more. 

Meghan Stabler is a highly experienced business executive with deep experience in all aspects of marketing, product management, strategy and digital transformation. Her background includes startup, pre- and post-IPO, turnaround and enterprise SaaS software firms. From cybersecurity to ecommerce, digital to mobile, Meghan has touched every aspect of today’s technology landscape. She currently serves as Senior Vice President at BigCommerce, one of the world’s leading ecommerce companies. Meghan was previously a Sr. Advisor at CA Technologies (acquired by Broadcom) and has held key leadership roles in several technology firms over the past two decades.