2024 Global Ecommerce Report: Home, Garden, and Furniture
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As we look back on a year filled with vibrant wall colors, statement pieces, and endless displays of texture — it’s no surprise that this bold style reflects how BigCommerce home, garden, and furniture customers took on the 2023 market.
Consumer behaviors and economic strains created a variety of challenges for these brands and retailers throughout the year. Businesses witnessed everything from decreased shopping habits from the conclusion of the pandemic to the impacts of inflation and a tough housing market.
While the home and garden industry was thrown a few curveballs in 2023, it’s still a prominent player in the ecommerce world.
In fact, Statista found that 20% of global shoppers purchased home and garden products online in 2023. On top of this, the average order value for global online furniture sales hit $422 per order this past year, indicating this industry sector alone could reach a market size of over $40 billion by 2030.
We took a look at the yearly performance of home and garden brands on BigCommerce to see how they were impacted by the different factors raining down on them.
Here’s a recap of 2023 and the top trends these businesses can expect to see in 2024.
BigCommerce’s home and garden data is sourced directly from our customers. All data is global and pertains to all countries where BigCommerce customers do business, unless otherwise noted.
All comparisons are congruent comparisons between the same number of existing stores dating back to the earliest period used in the comparison. For example, a year-over-year (YoY) comparison between 2023 and 2022 would use data only from BigCommerce stores that existed in 2022, unless otherwise noted.
Looking back at 2023 performance data, it’s clear BigCommerce home and garden customers put in a valiant effort to stay strong throughout economic hurdles and shifting consumer behaviors. This is evident in the global gross merchandise value (GMV) data — which came in at 3.25% YoY growth.
On the flip side, the number of orders placed in 2023 took a 4.3% dip compared to the previous year. Thankfully, global average order value (AOV) grew by 7.89%, indicating that merchants raised their prices as the costs of goods increased.
Brands and retailers in North, Central, and South America (AMER) as well as those in Europe, the Middle East, and Africa (EMEA) showed similar results to the global data.
Home and garden customers in AMER experienced a 4.84% drop in YoY orders, demonstrating the impact economic factors had on consumer shopping. However, the region’s YoY AOV grew by 6.46%, allowing it to come out on top — as shown by its 1.73% uptick in GMV.
EMEA followed suit with a 6.72% decrease in YoY orders. However, its 13.25% increase in AOV carried it back to a strong standing, allowing its GMV to come in at 6.21% YoY growth.
Contrary to AMER and EMEA, the Asia-Pacific region (APAC) saw a 9.48% YoY increase in orders. This, accompanied by its 2.91% AOV growth, allowed the region to achieve a 12.35% increase in GMV.
Despite the challenges BigCommerce home and garden customers faced, the vertical still ended the year on a high note.
To achieve growth, it’s essential to understand the behaviors of your customers and adjust your store to match their wants and needs — regardless of whether you’re facing market headwinds.
As a result of the pandemic ending, more consumers have returned to in-person shopping when it comes to purchasing household items. In fact, a 2022 study of more than 11,000 participants determined the majority of consumers prefer shopping in person for home decor, furniture, and garden products.
However, a mix of in-person and online shopping came in at a close second, demonstrating how important it is for businesses to create a frictionless shopping experience for consumers.
We don’t see the popularity of omnichannel shopping going anywhere in 2024 — especially as consumers continue to settle into post-pandemic behaviors that balance in-person and digital shopping.
By creating a unified omnichannel shopping experience, brands and retailers can seamlessly cater to any type of shopper, and increase overall sales and conversions.
This means using different shopping channels to reach consumers — such as online marketplaces and social media platforms — as well as implementing efficient pick-up options, like curbside and Buy Online, Pick Up in Store (BOPIS).
Economic factors such as inflation and high home interest rates have led many shoppers to hit the breaks on new home furnishings over the past year.
On top of this, McKinsey & Company found that in 2023, consumers chose to spend their money on experiences and services over home goods — causing household item spending to drop by 6%.
As obstacles like inflation, layoffs, and high home interest rates remain prevalent in 2024, we expect flexible payment options, such as Buy Now, Pay Later, to grow in popularity.
Offering shoppers the opportunity to pay in installments helps them feel more comfortable making purchases — especially during times of economic uncertainty.
Staying up-to-date with the latest technological advancements and using them to your advantage is one of the best ways home and garden brands can get ahead in today’s market.
With developments like augmented reality (AR), brands and retailers can create unique experiences that give shoppers the confidence they need to buy online.
Incorporating virtual showrooms and features that allow consumers to visualize a product in their homes can replace the need for customers to shop in person. In fact, a 2022 study found that 35% of shoppers between the ages of 18 to 34 use AR and virtual reality (VR) features while shopping for furniture.
In addition to AR and VR, generative artificial intelligence (Gen AI) is an emerging development we continue to see brands and retailers implement.
With Gen AI, home and garden businesses can improve search capabilities, create more personalized shopping experiences, and streamline processes.
"Gen AI is definitely here to stay and it will continue to get better and more powerful at a rapid pace," explained Troy Cox, Senior Vice President of Product at BigCommerce.
As technological advancements continue to develop and become more refined, we expect their prevalence to ramp up throughout 2024.
Over the years, we’ve noticed that many consumers favor brands that promote their sustainability initiatives. In fact, our 2022 Global Consumer Report, which surveyed more than 4,000 individuals, found that 84% of participants make a brand’s sustainability efforts an important part of their purchase decision.
We don’t see this changing in 2024 — and as reported by Statista, the demand for eco-conscious furniture is currently booming.
Throughout the year, we predict that more shoppers will become loyal to brands who promote their sustainability efforts — whether they use eco-conscious materials or showcase partnerships with environmental organizations.
While the home and garden industry encountered a few obstacles in 2023, BigCommerce customers still managed to stay resilient and end the year with a bang.
With the grit and strength displayed by those in this market, we have no doubt we’ll continue to see success from this industry — especially as economic strains ease up and consumers fall back to a more balanced lifestyle post-pandemic.
Be on the lookout for our upcoming home and garden blog series that takes a deeper dive into industry trends that can help set your business up for success in 2024.
Annie is a Content Marketing Writer at BigCommerce, where she uses her writing and research experience to create compelling content that educates ecommerce retailers. Before joining BigCommerce, Annie developed her skills in marketing and communications by working with clients across various industries, ranging from government to staffing and recruiting. When she’s not working, you can find Annie on a yoga mat, with a paintbrush in her hand, or trying out a new local restaurant.