Online shoppers still have home merchandise and projects on their plates, so buying at the category level and taking advantage of multi-channel amenities remains strong.
Home is definitely a category that has seen some ups and downs during the pandemic and beyond. It is likely that many shoppers have purchased home goods online for the first time while experienced shoppers have purchased extensively across this category. The 2022 Digital Commerce 360 and Bizrate Insights Home Goods Survey of 1,113 online shoppers talks about where shoppers are today. After several years of many of us living and working at home and this category fluctuating, I’m going to combine some annual numbers to provide a perspective.
Online shoppers appreciate the convenience of buying more household goods online. 25% of online shoppers have purchased at least half of their household goods online in the past year. On a yearly basis, online shoppers purchased a much smaller percentage of their household goods online, and this is reflected in the prevalence of online purchase (2022 vs 2021).
>50%: 25% vs 41%
<50%: 75% vs 59%
Home décor and furniture need to deteriorate after the pandemic
Thinking about these numbers leads me to believe that the needs of the overall category have likely declined after strong purchases during the pandemic. While the pandemic has prompted all shoppers to increasingly purchase household goods online, shoppers may now retreat back to physical stores. The tangible nature of home goods means shoppers can still see a turn in the store after the pandemic.
The various household activities of the individuals are likely to increase the consumption of the categories. Interest in home/craft projects and purchasing at the category level remains strong, and activities cited by online shoppers include general home promotions (44%) and DIY projects (42%). On an occasional note, starting projects now that the pandemic is over (10%) and transition (9%) also boosts research and buying in this category.
Home-related activities also mean searching online, with 27% of respondents looking for ways to improve their homes. 19% even check out social media to generate ideas.
Year after year, the search was also limited because many shoppers had already done their homework (27% vs. 44%). Also, online shoppers cut budgets and projects to match the needs. Given the pandemic frenzy around these activities, current behavior has been tempered:
home upgrades: 44% vs 37%
DIY: 42% vs 47%
Of course, saving money is a top priority for many. 37% reported that they took advantage of promotions for products of interest.
Purchasing by category is spread in the home category. The following attract the attention of online buyers:
Elements of the outdoor space: 30%
new furniture: 27%
Hardware Replacement: 24%
WFH needs: 14%
Shoppers continue to invest in their homes with a more limited focus, so we’re seeing subsequent shifts in behavior. One where a significant difference was observed year-over-year (2022 vs 2021) was work-from-home needs (14% vs 21%). One can only imagine that most people set up these spaces during the first year of the pandemic as needs decline over time.
What features do shoppers consider when shopping for their homes online
Price reviews and information that make it easy to compare products top the list of important household goods buying features. Shoppers value powerful product information along with commerce and tools that guide buying behaviour. This is manifested in the desire to access prices (68%) and ratings / reviews (62%), which should be integrated and populated. Retailers must give online home goods shoppers powerful product visuals for optimal decision making. Shoppers are important RThe ability to zoom in on a photo (47%) and photos created by shoppers (25%). Educational content is critical to delivering a perfect shopping experience, the most preferred being the ability to compare products (55%).
Displaying products including recommendations inspires shoppers. 36% find these important when shopping for household goods. More traditional promotion tactics can resonate among online buyers including new product offerings (32%), top sellers (24%) and trending products (17%).
Delivery information deserves a prominent place due to ongoing supply chain issues. Here, 40% of online buyers find accurate delivery windows important in purchasing categories.
Educational tools have an important role to play. 34% of survey respondents find how-to guides important, with video coming in at 23%. Digital buyers spend a significant amount of time researching, and this content—if it is compelling—can guide purchasing behavior. One step further, shoppers are increasingly interested in gadgets that elevate the home goods experience. This includes augmented reality at 17%, room design at 15%, and design limitations at 10%.
As more shoppers test these capabilities, one can expect to see increased growth. It is interesting that when looking at the annual results, these tools seem to have increased in importance.
Educational Tools (2022 vs 2021)
The ability to compare products: 55% vs 61%
How-to guides: 34% vs 22%
Videos: 23% vs 14%
Augmented Reality: 17% vs 8%
room design tools 15% vs 7%
Design features: 10% vs 4%
Like most online categories, Amazon tops the list of sites where to shop for household goods. Mass retailers follow Walmart and Target.
Slowdown in home businesses affects online spending
Post-pandemic, DIY projects are still prevalent, although they may be limited and smaller in scope. Despite the fact that many projects have been completed during the pandemic, 39% of survey respondents are still in DIY mode. Plus, with working from home now the standard fare for many of us, only 10% indicates the potential for further promotions. Overall, only 11% more professionals use it.
Our research indicates that both the number and scope of projects after a pandemic tend to be smaller and more limited. From a scale perspective, 23% say their projects are smaller, versus 17% who have larger plans. In terms of range, the results appear to be similar, 23% smaller and 18% larger.
Supply chain challenges remain, with 38% of online shoppers waiting longer to get the items they order. Plus, 19% had to switch retailers because they were out of stock, so we’re not out of danger yet.
Online shoppers embrace additional services
Many home goods shoppers need services. These can range from assembly to design, all in the hope of efficiently managing their projects. Almost half of online shoppers are likely to take advantage of these additional services along with shopping for household goods. Retailers have opportunities to secure additional revenue. Placing such services strategically provides added value to these buyers.
Online furniture and decor experiences are multifaceted
Shoppers can have a range of experiences when buying household items online, so a comprehensive review of these consumer findings should help retailers guide their investment strategies. Searches and purchases are spread across mobile devices, with 46% citing it as part of their past experiences. Thus, monitoring the mobile user experience (UX) is critical due to this increased usage.
Content drives buying, necessitating the investment by home goods retailers to both educate and inspire shoppers. It starts with 37% of those who have viewed the video and includes checking out Pinterest or other social media (24%). Those who watch TV/home and garden programs (23%) and finally those who read blogs in this category (13%) are also taken into consideration.
While the tools and services are seeing lower penetration, they serve to support shoppers looking to embrace what’s new in this category. Results among those surveyed indicate that 12% have custom furniture, 11% use augmented reality tools, and 9% have tried 3D room planners. Annual usage has been on an upward trajectory as stated below (2022 vs 2021):
custom furniture: 12% vs 8%
Augmented Reality: 11% vs 6%
3D room plans: 9% vs 4%
Although many indicated that they were interested in using home services, 10% of them had not actually had such experiences within the past six months. It was important that all of these services had higher levels of experience.
Home service appointment: 9% vs 6%
Home advisor/Task Rabbit services were used: 7% vs 4%
Online Reserved Collection: 6% vs. 2%
In-store appointment: 5% vs. 1%
Default date: 4% vs. 1%
Availability of the product and picking it up from the store is a factor when buying for home
The store is an integral part of shopping for household goods, making it imperative that product selectors, accurate stock, BOPIS and curbside options are in place. 43% of respondents check the availability of the product in local stores, and this may now be part of deciding whether or not to visit the store. For retailers, the good news is that 23% have, in fact, visited a retailer as part of their shopping trip. From there, comes the role of evaluation: receive or deliver? In the post-pandemic period, many shoppers continue to use store-based amenities to complete their purchases of household goods, with 32% taking advantage of BOPIS and 25% enjoying the curbside option.
The focus on inventory is waning along with omnichannel activity, although delivery issues persist. Omnichannel saw some declines year over year as shoppers may have wanted to tap into physical stores. This category is tangible in nature, after all.
Check product availability in local stores: 43% vs 56%
BOPIS (Buy online, pick up in store): 32% vs 40%
Sidewalk: 25% vs 30%
Out of stock: 41% vs 46%
Inventory, late deliveries, cancellations, and logistics are all concerns for online shoppers due to ongoing supply chain challenges. Unfortunately, 41% experience out of stock when shopping online. 25% were late in deliveries, and 16% had their orders canceled. Increasingly, more online shoppers are looking for same-day delivery options and in this category, 18% have embraced this convenience.
Shoppers continue to test additional services. Here, 11% used express services, while 5% signed up for white glove services.
When asked to consider their future spending in the household goods category, four in 10 online shoppers expected to spend less on household goods in 2022. From a top-line perspective, 42% expect their spending to be on par with last year. Only 17% expect to spend more, and unfortunately 41% will spend less, which will certainly have repercussions on the bottom line.
Competition for the home goods shopper will be fierce for the remainder of 2022. With projects limited and shopper spending relatively flat, it will be up to retailers to inspire, inform, and service shoppers to acquire and maintain their business in the coming months.
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