Currently, the revenue of the worldwide ecommerce furniture industry is valued at $329B and is set to grow consistently at a 3.5% CAGR over the next 5 years. Globally, ecommerce has taken the furniture market by storm to now account for 16.4% of all retail sales as well as 10.7% of American furniture sales domestically. This means that the annual global revenue of digital furniture purchasing is set to reach $6.5 trillion by 2023 alone.
In addition to industry forecasted growth trends, the impact of the global pandemic has been beneficial for ecommerce in general and the online furniture industry in particular. While people had already been buying more online and becoming comfortable with purchasing bigger ticket items via the internet, the pandemic has greatly expanded this trend. The restrictions and ongoing safety guidelines that have come with the pandemic throughout the year have brought a shift in consumers long-term buying habits hugely increasing the potential for this business.
This well-established ecommerce niche furniture retailer specializes in providing products of the highest quality possible, creating a carefully curated selection of elegant, well designed home décor products from both domestic and international brands. Since inception, this business has processed thousands of orders utilizing a dropship model. With no physical inventory to stock, not only does that mean office space is not needed and the business can be home-based, but it also means no working capital tied up in inventory. This business is run by two owners who handle organizing orders, customer service, shipping and managing the financial tracking, working approx. 35 hours per week, split between the two.
This furniture e-retailer continues to experience growth with sales up 55% and profits up 275% for Jan-Oct 2020 over the same period in 2019. Additionally, with an average monthly traffic rate of 15,000 visitors per month as well as a 23% rate of returning customers, word of mouth and loyal clients provide a growing purchase pipeline that can easily be leveraged for extended profits and impactful growth.
Some Key Benefits Include :
100% Dropship Model
Longevity with Brand Recognition in the Furniture Industry
Avg. Order Value $1,750
Large Customer List
High Rate of Returning Customers
No inventory management
Small to no working capital requirements
High quality furniture not found in stores
High demand furniture design
No customs or tariffs
While this offering currently maintains consistent growth and revenue, there are many ways to expand these efforts and rapidly scale this ecommerce furniture company. Currently efforts are mainly focused on daily operations with little effort to grow the business which leaves lots of room and potential for growth. Some ideas for future growth include: expanding PPC and SEO efforts, using social media to leverage the brand, newsletters, product line expansions, entering into the Amazon marketplace, and contacting design influencers.
This ecommerce business offers stylish furniture from multiple brands and a convenient dropship business model with sales converted through its Shopify store. This careful balance of style, strategy and affordability gives the company an advantage in its marketplace.