The furniture industry has a problem. At around 0.5%, conversion rates in the sector trail the ecommerce average of 2.58%. Some of this is structural, with furniture being a higher-value, more considered purchase than, e.g., clothing or footwear. But even with this hurdle in mind, help is at hand.
Innovative furniture companies have demonstrated it’s possible to increase conversion rates in ecommerce by up to 200%, using new techniques to capture the modern buyer. By bridging the gap between physical and digital shopping, brands are far exceeding established benchmarks. Discover their strategies below.
Bringing products to life with 3D
High quality 3D models provide online sellers the most accurate way to display their products, surpassing even pictures and video. But the benefits go beyond simple aesthetics. By offering consumers immersive tools, retailers make online shopping an active, rather than passive, experience.
Consumers who can zoom, rotate and explore a product from all angles in 3D are naturally more engaged. Data shows the important benefits this brings to firms seeking to increase conversion rates in ecommerce:
- Google finds that 3D visuals achieve 50% higher engagement than static images.
- Forbes states that 3D drives 40% higher conversions than 2D images.
- Shopify research found a 27% rise in orders when customers interacted with 3D.
3D and AR experiences are shown to increase conversion rates in ecommerce | Furniture: IMS Avola Corner Sofa
READ MORE: How product personalization benefits the furniture industry
Using augmented reality (AR) to increase conversion rates in ecommerce
Forecasts by ARtillery Intelligence project $255B in consumer spending will be AR-influenced or aided by 2027 (from practically $0 in 2019). It’s a figure that demonstrates the value of 3D and AR innovations to furniture brands in particular.
AR blends the digital and physical shopping models, enabling customers to visualize purchases in their own homes. This try-before-you-buy capability helps address buyer hesitation when it comes to purchasing furniture online. By allowing browsers to customize and appraise pieces in their unique setting, the experience surpasses that of traditional shopping in many ways.
AR is one of the few tools that can impact every part of the sales funnel, from brand awareness at the upper end, right through to product purchases. This lower-funnel activity, demonstrating AR’s capacity to increase conversion rates in ecommerce, has generated attention-grabbing results:
- Shopify internal data found AR can increase conversion rates in ecommerce by 200%.
- US furniture giant Overstock achieved 10-200% increases from AR product visualization.
- Outdoor kitchen brand ByLogstrup saw sales rise 600% from their AR rollout.
“Frankly I’m amazed none of our competitors have used this technology.”
– Henrik Hanson, Co-founder, ByLogstrup
Supercharging return on investment
The ultimate goal for furniture companies trying to increase conversion rates in ecommerce is to boost the bottom line. That’s where careful analysis of ROI comes into play. And it’s here that a particularly compelling datapoint is found.
DFS, the UK’s leading sofa retailer, has a background as a traditional bricks-and-mortar operation. With more than 120 showrooms, the brand is so synonymous with its product that ‘DFS’ is the most-commonly searched term in the sector – ahead of even ‘sofa’.
Despite enjoying such brand prominence, in January 2020 the company introduced the world’s largest AR-based product visualization offering. The technology investment allowed the firm to offer previews for more than ten thousand pieces. The results were striking:
- The rollout saw DFS increase conversion rates in ecommerce shoppers 112%.
- A 106% increase in revenue per visit.
- A 22x return on the company’s investment in product visualization capabilities.
“The results so far have been outstanding, and we are successfully growing online sales.”
– James Vernon, Head of Online, DFS
How product visualization fuels consumer confidence
Even before the pandemic, Google found that 66% of people were interested in using AR for help when shopping. What’s more, 60% wanted to be able to visualize where and how a product could fit into their lives. Simply put, product visualization solves a significant consumer pain point. For furniture companies, that makes it powerful tool to increase conversion rates in ecommerce.
What’s the secret behind these striking impacts? Product visualization brings consumers the advantages of the three Cs:
- Confidence: the ability to visualize products in their own homes lets consumers accurately check for size, style and fit. Combined with a reduced likelihood of having to organize a return, this increased certainty boosts purchase confidence. 80% of shoppers report feeling more confident in purchases made with the help of visualizations.
- Convenience: product visualizations lessen the need to visit a physical store, and the reliance on measurements and style-swatches. They also minimize the chances of an item not meeting expectations when it arrives. Nearly 3 in 4 consumers are willing to pay more for products they can gauge accurately with AR.
- Control: visualizations give buyers a greater all-around sense of agency and foster an emotional connection with the product. This is crucial for consumers making high-value, considered purchases. 61% of consumers prefer to shop with brands offering visualization experiences.
Brands enjoying the greatest success with visualization experiences have made them a seamless part of the customer experience. By integrating frictionless product visualization into the customer journey, even consumers unaware of the technology can experience the benefits, heightening the chance to increase conversion rates in ecommerce as result.
Boosting the bottom line
As touched on earlier, managing to increase conversion rates in ecommerce is only one piece of the puzzle for company leaders. What matters most, ultimately, is the bottom line. As with any tech investment, there are costs involved when integrating innovations like 3D models and product visualization. But they needn’t be crippling, and should be considered in terms of overall impact.
Taking a look at some of the other key data points again shows the operational gains to be had:
- Furniture retailer CB2 found product pages with 3D and AR saw 21% higher revenue per visit (RPV), and a 13% lift in order size.
- Home Depot saw conversion rate rises of up to 200% when it rolled out product visualizations.
- Shopify and Overstock found that purchases made with help from 3D and AR saw up to 40% fewer returns.
Improving sustainability credentials
That last data point has huge implications. In 2023, US consumers returned $743B worth of purchases, accounting for 14.5% of all retail sales. Return costs are a growing and significant problem for businesses worldwide. But the implications go beyond simple cost savings.
Reducing returns results in lower transportation emissions, representing one of the sometimes overlooked environmental benefits of product visualization. From removing the need for physical trips to stores, to reducing packaging and materials consumption, technology has a key role to play in helping retailers meet consumers’ changing expectations.
According to a survey by Deloitte, nearly 1 in 3 consumers have stopped purchasing a brand or product due to sustainability concerns. In a world where a brand’s credentials in this space now have a direct impact on the bottom line, businesses need to convince customers they’re serious about moving to a sustainable future. A technology investment that allows them to do this and increase ecommerce conversion rates at the same time is a win-win.
Grasping the opportunity in furniture ecommerce
Evolving consumer habits and innovative technology have created a significant opportunity for furniture companies to increase conversion rates in ecommerce. While digital tools offer solutions, the heart of the matter is the same as it has always been: solving customer pain points. That means enabling ecommerce buyers to explore products in lifelike detail. It means empowering them to preview pieces by visualizing them in their own environments. And it means reducing the anxiety around online purchases and potential returns. By doing so, furniture companies smooth the way for customers to click ‘buy’.
