Covid-19

18 May 2020

Covid-19 Transmission Fear Has Boosted Wayfair Sales 20%

COVID-19 has brought significant Online Shopping Surges, letting users on the global forefront to use app technology to meet their demands. Indeed, the rise of using an online shopping app is poised to become one of the lasting effects of the pandemic.

Why online shopping is soaring high?

Hmmm, a very good question! As we know the pandemic has brought billions of people holed up in their homes, consumers are shopping online like never before. Surprisingly the online shipping has not remained sufficed to groceries, but furniture and home décor are also piquing consumers’ interests.

The COVID-19 pandemic has forced the temporary closure of many brick-and-mortar retail stores, online shopping app is creating a stir. It has been observed that some non-essential eCommerce shopping apps are witnessing double and triple-digit sales increase.

In this run, Wayfair- a haven for buying home furnishings online, has witnessed increasing sales. This step indicates the strength of the e-commerce industry amid pandemic on a vast level.

Wayfair is winning the obstacles of online sales!

As per the ACI report there is a 74% rise in e-commerce sales during March, with considerable increase in home furnishings up 97% and DIY projects up 137%.And here, Wayfair is utilizing technology to hem capitalize on the growth.

Thomas Netzer, COO, Wayfair, mentioned, “We are developing new technology platforms to reinforce our already strong connectivity with our supplier partners and to elevate the quality of our data exchanges. Also, we are increasing the level of automation to drive outbound productivity and improving fulfillment center capacity through higher utilization of our existing footprint.”

Michael Fleisher, CFO of Wayfair has also stated, “While we do not know exactly how the world will play out, we know that times of massive change caused customers to seek new ways to purchase. And like what happened in 2008 and is happening now, accelerating the movement online in many categories including home.”

In Wayfair’s Q1 report, it is reported there is a net revenue increase of $385.2 million to $2.3 billion, up 20% compared to the same quarter last year. Also, there has been a spike in customer retention as well. Here, the company has witnessed, nearly 70% of orders in the first quarter of 2020. And this is coming with a great announcement of repeat customers and accounted for 6.9 million orders in the first quarter.

Niraj Shah, the CEO, Wayfair, stated that “We are making significant strides toward profitability by driving gross margin expansion, increasing marketing efficiencies and gaining leverage on operating expenses.” 

How COVID-19 has impacted businesses on the global forefront?

The Covid-19 outbreak has left large parts of brick & mortar shops being been shut down to limit the spread of the virus. In this run, a majority of consumers have transformed their buying patterns, and prefer to shop online to meet their requirements. But as per the study, spending on clothes, home & furniture, and consumer electronics will spike in the Q4 of 2020.

Now the bigger fact suggests, that brands need to place their products online to meet the demand of the users. This will help them to get their products visible when consumers search for them at online platforms.

Furniture online Sale Surges in the wake of COVID-19

There is a very common doubt that occurs, that furniture shopping being a non-essential; why receiving massive online rush? We all want a beautiful home, where we can unwind and feel relaxed. During pandemic when people are doing WFH, they are having enough time to look for better opportunities to make their dream home a reality.

The furniture or home décor industry is seeing a surge in interest from buyers. As buyers want to carve out work-from-home spacesto foster productivity while also feeling attractive and sustainable. As there is no prediction for how long this situation will last, there is an uptick in the sales of home furniture and other embellishments.In this league, platforms like Wayfair are getting revenue growth and reaching out to the users, who are looking forward to embellishing their homes.

Future of online sales in 2020

The fear of slumped economy has brought uncertainty for every sector, which is putting a question mark on the future of many businesses. However, it is expected that brand owners will increase online sales in 2020. This analysis clearly states that there is a change in consumer behavior, where they prefer to shop online.

Therefore, it would be a winning situation for businesses to get good control of their products online. This will create a sustainable platform for them to outgrow their revenue amid pandemic as well.It goes without saying, the Corona outbreak will expedite the shift from physical retail to e-commerce. In the current spectrum, Online Shopping Surges have increased, as people are browsing more number of products online. It is helping buyers to maintain social distancing, lockdowns and other measures to control the spread, while meeting their demands.

How Techugo can help you?

The Coronavirus outbreak has left each of us in a juxtaposed situation and echoes the upward trend of the digital revolution. Hence, your business must embrace digital mode at the earliest possible.

We can help you grab the attention of your consumers with an efficient eCommerce shopping app solution. Give us a call today and share your furniture app requirements with us, and we will help you sail through.

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