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Sell furniture on Amazon?

What’s next for the furniture industry in eCommerce?

With the recession being a thing of the past, the furniture and homeware industry is a good indicator of how the housing market largely recovered its losses. This is reflected in the slow but steady 3.4% YoY growth of furniture sales. However, furniture and home décor producers face new challenges posed by the digital transformation as an increasing number of consumers turn to the internet in search of their new candelabra. Can home and kitchen brands survive by relying solely on traditional distribution channels?

Sell furniture online vs on site

The short term answer – yes. The long term answer – definitely not.

According to statista.com, online furniture and homeware sales will see an average yearly growth of 10% worldwide. This means that the growth driven by eCommerce outperforms the overall market growth nearly three times! Considering the UK counts as the world’s 5th largest market in online-bought furniture, these numbers will possibly be even higher.

While the digital buyer penetration is expected to hit 11.5% in 2020, it is projected to reach nearly 18% over the next couple of years. Changing buying habits are mostly at fault here as online and mobile shopping has become millennials’ second nature. Product content such as high quality imagery and social proof in the form of customer reviews now serve as enough touchpoints for the consumer to make their purchase decision.

Indeed, the majority of consumers still say they prefer to shop for their furniture in stores, but the opposite trend is quickly turning the tide. It has been noticed by large retailers such as the Swedish giant IKEA or the American marketplace Wayfair, who have been investing heavily into their online presence and are securing ever larger market share in household eCommerce. IKEA reported a whopping 27% YoY(2019) online sales growth in the United Kingdom alone.

And the latest newcomer – you guessed it – is Amazon.

amazon rivet brand
The new Amazon furniture brand - Rivet (source: amazon.co.uk)

Home and Kitchen – Amazon’s new gold mine?

Amazon is working hard to become a marketplace with one of the largest Home and Kitchen catalogues. In 2018, it finally launched its first two privately owned labels, Rivet and Stone & Beam, followed by Alkove, Movian and two others in 2019. If Amazon demonstrates its willingness to enter this difficult line of business, it is high time to do the same.

Amazon’s success can largely be attributed to tackling one of the biggest challenges in the homeware industry – logistics. Amazon Prime’s solid infrastructure provides a seamless, quick delivery the customers demand and its free return process ensures that buyers are willing to spend larger sums on larger items without the need for inspecting it. This is good news for manufacturers who are currently considering their entry on Amazon as they can easily benefit from it.

Moreover, the marketplace arena fosters pricing competition, which in turn motivates buyers to shop for homeware items even in the world of extremely high property prices. However, this also means that retailers eager to follow suit need to be prepared for drastic changes in their business – especially in eCommerce management and marketing.

Launching a product on Amazon requires a completely new way of thinking about describing your products for potential customers, presenting them in a visually pleasing yet mobile-optimised way, and most importantly – making sure users find your products.

If you’d like to know the best strategies, meet us at one of the following events or talk with one of our experts right now. Let’s work together to help you achieve success on Amazon!

Home and Kitchen events to watch out for

ECC FORUM 2020

25 Mar, 2020 - Halle Tor 2

The ECC FORUM is a leading event for digital trade. On the 25th and 26th of March 2020, more than 300 guests and many exciting speakers are expected in the Cologne hall Door 2. Valuable first-hand insights about customers and markets will be presented from top speakers from trade and industry fields. In addition, the focus of the event will be on networking on eye level. Exciting concepts from B2C practice will be presented on the first day, and the focus will be on B2B trade on the second day.Read more

OMR Festival

12 May, 2020 - Hamburg Messe

The OMR Festival is a leading digital marketing event in Europe. On the 12th and 13th of May 2019, 50,000 visitors, over 400 exhibitors, and more than 300 speakers are expected to attend Hamburg fair. The OMR Festival is the place where the online marketing scene gathers and where visitors can be inspired, informed and captivated for two days.Read more

K5 Konferenz

26 May, 2020 - Estrel Berlin – Hotel & Congress Center

K5 is a leading event for e-commerce in the German-speaking world. With more than 3,000 participants, 150 speakers and 150 exhibitors, the K5 Future Retail Conference 2020 will take place on the 26th and 27th of May. For two days, the digital retail scene will gather in a relaxed, friendly atmosphere at the K5. “Content First”, strategies and first-class networking will naturally take place as well. On the main stage and in various master classes, industry experts will discuss tips and tricks on current trends, acute pain points, and their personal experiences in e-commerce.Read more

DMEXCO

23 Sep, 2020 - Köln Messe

DMEXCO acts as the Business and Networking Platform for the digital economy. Visitors come to be inspired while being given the opportunity to engage in self-education while taking advantage of the unique networking and deal making opportunities. factor-a – part of Dept will also be there! Make and appointment with us and experience our expertise, and how we can drive your digital businessRead more

Let’s grow your Home and Kitchen business on Amazon!

Jokob-Kruhoffer

Jakob Kruhöffer
Director for the UK
uk@factor-a.com
+44 20 35140297

Case Studies

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600% sales increase with Sponsored Ads: A case study

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Retargeting Case Study: Boosting Sales with Amazon DSP

Have you plateaued with your Sponsored Ads campaigns? Retargeting will take you to the next level! Find out what’s possible in this real case study!Read more

Case Study AEG: 68% sales increase through Amazon Marketing

AEG is a leading global manufacturer of home appliances for private and commercial use. Our Team’s expertise in Amazon Marketing … Read more

“Manufacturers must sell successfully on Amazon today in order to have a chance of operating successfully in the e-commerce market tomorrow. With its headquarters in the heart of Europe, factor-a is the service provider with the most advanced strategies and concepts because it entered the market at an early stage and looks after the most important major brands in their extended fields.”

Alexander Graf
Alexander Graf
E-Commerce expert - kassenzone.de

“As a rule, Amazon is the most important source of revenue for manufacturers in the B2C environment in e-commerce. factor-a is a premium service provider that understands the requirements of brands, operates on a performance-driven basis and generates significantly higher revenues on Amazon. A decisive success factor for manufacturers is the high quality factor-a achieves due to its technological orientation in all services worldwide.”

Markus Fost
Markus Fost
Managing Partner - FOSTEC & Company GmbH

“Brands don’t only sell on Amazon: they are created on Amazon. Amazon is the central component in the customer’s journey. Premium brands would do well to make active use of the opportunities offered here. factor-a supports you in the selection, set-up and continuous optimisation of marketing measures to position brands on Amazon for long-term success.”

Adrian Hotz
Inhaber - Adrian Hotz E-Commerce-Beratung

Amazon insights

Voice Commerce: How Alexa brings you into the home of your customers

With Alexa, Amazon has created a new connection between companies and consumers and has thus thrown old marketing principles overboard. The newly created Voice Commerce channel plays by its own rules. Now it is a matter of developing good strategies to win the game.Read more

Best practice: Optimize product images for Amazon and mobile commerce

It is no secret that buyers tend to rely more and more on product images when shopping online. Images are … Read more

Fashion on Amazon: What’s possible with Amazon Advertising?

Find out how Amazon is quietly transforming the world of retail fashion and why now is the time to start paying attention.Read more

600% sales increase with Sponsored Ads: A case study

Discover how utilizing Sponsored Ads helped a home and garden decor brand achieve six times higher revenue on Amazon. Read more