That may sound intimidating until you find out that less than 10% of e-commerce websites make more than $1,000 a year.
Luckily for home furnishings retailers, that means they have a chance to get on the e-commerce train and learn how to consistently make money from it before others.
E-commerce — The Hardest Game in Town. We know that most e-commerce sites are not very successful, but Smallbiztrends.com found that 90% of all established e-commerce sites will fail in the first 90 days — which is the same rate of failure among startups in general.
Some reasons e-tailers fail?
Poor online marketing – 37%
Lack of online search visibility – 35%
Little to no market for their products or services – 35%
Cashflow problems – 32%
Issues around pricing and costing – 29%
Tough competition – 23%
The market is dominated by retail giants – 19%
Lack of customer service – 16%
Poor team around the founders – 14%
Choosing a wrong time to launch a product – 11%
However, we also know that in the furniture industry, those who solely focus on e-commerce have little luck. It’s those who deploy an omnichannel strategy that have the most success.
How Often Do People Buy Online?Oberlo, a supplier of dropshipping software, reports the number of digital buyers worldwide at 2.14 billion — which equates to 27.6% of the world population.
In the U.S., more than 263 million people shop online, and that number is expected to pass $1 trillion by the end of 2022.
And as you might guess, because Millennials make up the largest group of online shoppers in the U.S., that e-commerce is growing thanks to younger generations.
One report found that “for men, the share of online shoppers among internet users is slightly higher than for women (74% and 73% respectively), while people aged 25-34 are more active e-shoppers (85% of internet users) than other age groups, according to Sourcing Bro.
The future looks bright for e-commerce, as experts predict that by 2026 e-commerce payment transactions will exceed $7.5 trillion globally.
But the key for furniture retailers is to have an omnichannel retail strategy — one that blends in-store and online sales — to ensure you hit every customer where they are.
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