When you hear the word home goods or household goods what comes to mind? Perhaps an air conditioner, wardrobe, cabinet, coffee maker, cooking utensils, couch, sofa, linens, bed, beddings, blankets, mixers, blenders, freezers and the list goes on. Simply put, household goods are moveable and tangible properties, articles or items that are found within the confines of a room in a house, be it a bedroom, living room, dining room and so on. As we may know, household goods have a significant role in the economy of a country. They provide an opportunity for moving companies to thrive; the same goes for distribution and disposal companies. These goods can also be a medium of foreign exchange through imports and export. Home goods are divided into consumer appliances, appliances, tools and housewares as well as home furnishings (furniture).
However, this article goes beyond household items in a home to see how well household items or goods are doing in the stores and what it takes to get into the market either as a store owner or for investment purposes.
Generally, we can see a rise in e-commerce stores offering goods online; e-commerce has cut across so many areas and products faster than we thought. Getting a blender or freezer can be done by merely ‘ordering’, and they can be delivered to your home without any hassle. It’s such a great thing and has opened doors for multiple businesses to thrive, including the household goods market. The worldwide revenue for household furniture and appliances is about $260 billion and may increase to over $410 billion by 2022.
It is no longer news that more US consumers are purchasing their goods online. Currently, online purchase of household goods takes up to one-third of all sales with a continuous increase. Though these statistics state the fact, the number of persons purchasing household items online when compared to other goods is still on par. Thus, the frequency of online purchases can always be improved. This brings us to the question as to whether e-commerce in home goods is feasible.
Going into online sales be it for automobile goods or beauty products require understanding in the fundamental set-up of stores as well as what is trending and obtainable in the market. Most e-commerce household items stores meet with tough competition and have to be innovative to succeed since the market share is not too large — thriving store owners design strategies like allowing customers to choose items from a broader range of goods and appliances than a conventional retail store.
If you plan on joining the market, you may need to consider;
- Market Size: of course before you venture into a business, you need to be sure that your products will have a huge market. The law is simple, the higher the demand, the more likely you will have higher sales as against a low market size — recent study and research state that the number of online shoppers for household items is on the increase and will continue in that trend. The market size is a good one to go with considering that it is increasing with many high ticket customers purchasing their goods conveniently and it is a trend everyone will soon join in. Speaking of revenue, sales in home goods has generated total revenue of about $250 billion in today’s market. This is good news for the investor or the online store owners. The increasing number of homes, interest of individuals and added convenience of buying online are observable factors responsible for this increase.
- Competition: the factor of competition does not include excess emphasis. Every business out there thrives on competition. Even on the online market, you need to step up to the challenge of beating competitions who entered the market before you or at the minimum gain a good share of the total consumer attention to succeed. Top players like Amazon, Purple, Sears, Wayfair, Newegg, Wish, Bonanza and the famous eBay have a good number of customers as well as some perks that keep these customers strolling to them for their household items including free shipping and discounts at strategic times. Good companies thrive well with schemes that keep customers coming. So, the feasibility of getting in on the e-commerce of home goods depends on your strategic approach to selling. The companies or businesses with the upper hand are those that engage the customers well, either via promotion or unique features they offer.
- Niche: the idea of being present in all things or our case, all niches may not be the best thing when you are venturing into the business of owning an e-commerce store for home goods. ‘Home goods’ is a term that covers a host of goods including, appliances, housewares and furniture. It is best to start with a particular area in household goods, say for example cabinets. A famous example is the Purple Company that focuses on matrasses. It has a yearly revenue generation of close to a $100 million. It is more convenient to focus on a niche and make the most of it than expanding through other slots under home goods with no focus area – for a start.
When venturing into a business like retail of household goods, it is best to correctly understand the market analysis. The feasibility of owning an online retail store for household items is dependent on how equipped you are with the knowledge to handle the market trends and adjust your business towards these trends. Though the above may not be encompassing on the do’s and don’ts when setting up an online store or provide all answers you may have as regards e-commerce of home goods, it gives an overview of the general market structure and prospects for the area. It is pertinent to know that the success of your business as you venture into home goods rests on your understanding of each buyer and how apt you are in giving them reasons to purchase from you instead of the competition.