With the right strategies and tools, retailers can elevate their online presence and drive lasting success, said a panel of experts assembled by HFA.
Today’s retailers face a dual e-commerce challenge. They must stand out in a sea of competitors while adapting to the ever-shifting expectations of digital shoppers. Success in this environment requires more than just listing products online—it demands a strategic approach to merchandising that captures attention, builds trust, and drives conversions. In this article, we’ll delve into proven online merchandising strategies that can help you enhance your store’s appeal, engage your audience, and ultimately boost sales.
HFA assembled a panel of e-commerce experts, including Beck Bessecker, CEO of 3D Cloud; Ian Leslie, CMO of Industry West; Génesis Miranda Longo, Head of Marketing for Home Furnishings at Shopify; and Laura Khoury, CEO of Shoptelligence; to discuss the challenges and opportunities facing furniture retailers.
Augmented Reality & 3D
Bessecker, an expert in 3D content management, underscored the transformative role of AR in enhancing consumer decisions, especially for large-ticket items like sofas and dining tables. Data reveals that AR product views reach around 50 million per month, with impressive engagement rates: 2.5%-3% for general items and 10%-12% for larger pieces.
“AR is an engaging tool, often called an entertaining tape measure, significantly boosting purchase rates,” he explained. “The tactile visualization provided by AR allows consumers to see how items fit within their spaces, mitigating buyer uncertainty and minimizing returns. For example, brands like LoveSac have harnessed AR to promote customizable furniture, seeing notable sales increases.
High-Res 2D Images & Live Consultations
While AR is a powerful tool for enhancing the online shopping experience, it’s not a practical option for every retailer due to its cost and technical demands. Leslie shared an alternative approach that has worked exceptionally well for Industry West Furniture: leveraging high-resolution 2D images. He emphasized that these images aren’t just about visual appeal—they are a tool for building consumer trust. Features like close-up shots, lifestyle settings, and dynamic angles enable shoppers to envision how a product fits into their space without needing augmented reality. This budget-friendly strategy underscores the importance of presenting products in a tangible way, even in a digital format.
Similarly, Shopify’s Longo highlighted the transformative potential of live consultations in online merchandising. “Engaging directly with customers through live chat or video,” she explained, “brings a human touch to the digital shopping experience, mirroring the personalized service traditionally found in brick-and-mortar stores. Live consultations allow retailers to address customer concerns in real time, answer product-specific questions, and provide tailored recommendations based on individual needs and preferences. This enhances the shopper’s confidence in their purchase decisions and fosters a deeper connection and trust between the customer and the brand.”
Longo pointed out that integrating live interaction tools into an e-commerce platform doesn’t require a complete overhaul. Many scalable solutions allow even smaller retailers to offer these services effectively. For instance, a home furnishings retailer might use video consultations to guide customers through fabric selections, demonstrate furniture assembly, or discuss room layout ideas, turning what could have been a hesitant shopper into a confident buyer.
“Consumers crave authenticity and personalization,” she continued. “When you meet them where they are—whether it’s a quick chat for reassurance or a detailed video consultation—it creates a memorable and engaging experience that sets your brand apart.”
Automation & AI For Online Merchandising
Automation and AI have become cornerstones of efficient and effective online merchandising, transforming how retailers manage their digital storefronts. Leslie highlighted the value of platforms like Nosto (www.nosto.com), which leverage AI to streamline key aspects of merchandising. These tools reduce the need for manual input, allowing retailers to focus on strategy and creativity while the system handles product placement, personalization, and recommendations.
Nosto and similar platforms like Shoptelligence analyze vast amounts of data—from browsing behaviors to purchase patterns—to optimize the shopping experience in real time. For example, AI-driven algorithms can automatically curate product recommendations tailored to each visitor, showcasing items most likely to align with their preferences and purchase intent. This enhances the customer experience and drives higher conversion rates by presenting the right products at the right time.
Another strength of AI-powered platforms is their ability to adapt quickly to trends and inventory changes. If a particular product starts selling out, AI can reconfigure merchandising strategies, highlighting similar items or pulling from complementary categories to maintain sales momentum. Automation can also dynamically adjust banners, collections, and featured products based on real-time performance data, ensuring every storefront element remains relevant and engaging.
“Retailers often worry that automation will take the human touch out of merchandising, but the opposite is true,” noted Khoury. “AI enhances the shopping experience by making it more personalized and efficient while freeing up teams to focus on storytelling, design, and other creative pursuits that build brand identity.”
Automation facilitates streamlined operations, allowing for real-time merchandising updates and personalized experiences. She emphasized the importance of investing in tools that can effectively leverage and enhance photography efforts. “Great photography is the foundation of successful online merchandising,” Khoury explained. “But to truly stand out, retailers need tools that can dynamically leverage those visuals to create engaging, personalized experiences.” Automation bridges this gap using AI and data analytics to tailor product presentations to individual customer preferences.
For instance, tools powered by automation can analyze a shopper’s browsing history to curate personalized product recommendations, using compelling images to highlight complementary or alternative items. Similarly, automated solutions can adapt product displays in real time based on trends, stock levels, or seasonality, ensuring customers always see the most relevant and appealing options.
She also emphasized how automation can amplify the value of photography efforts by integrating visual assets seamlessly across multiple platforms. For example, a single set of professional images can be automatically resized, optimized, and deployed across a retailer’s website, social media channels, and email campaigns. This ensures consistent branding and maximizes the return on investment in visual content.
“Investing in the right tools doesn’t just save time—it elevates the entire shopping experience,” she continued. “Automation allows retailers to focus less on manual processes and more on strategic efforts, like storytelling through visuals and building stronger connections with customers.”
By combining automation with compelling photography, retailers can create an immersive, visually engaging environment that feels as dynamic and tailored as a high-end showroom—all while reducing operational burdens. This approach enhances the customer experience, drives higher conversion rates, and fosters long-term loyalty.
Omnichannel & Unified Commerce
Creating a seamless customer journey involves integrating online and offline experiences. Longo advocated for unified commerce, going beyond traditional omnichannel approaches by integrating operations, data, and systems to foster a cohesive customer experience.
A unified commerce strategy promotes growth, operational efficiency, and improved customer journeys. For example, understanding online behavior, such as abandoned carts, can help refine the in-store experience, ultimately driving higher sales.
Personalization
Personalization is a fundamental aspect of modern e-commerce. From simplifying the user journey to overcoming decision fatigue, tailored experiences can significantly boost customer satisfaction and sales. HFA’s panelists weighed in regarding this topic.
Khoury highlighted the necessity of embedded personalization throughout the shopping experience, particularly in the furniture industry. Technologies facilitating this, such as AI-driven recommendations and self-service configurators, enable customers to navigate options more easily.
Bessecker pointed to the potential future of personalization with AI and natural language interfaces, predicting even more intuitive and tailored consumer interactions. Encouraging users to identify their role (e.g., homeowner, designer, contractor) can further enhance personalized experiences by providing relevant insights and recommendations.
Bundling and Promotions During Peak Seasons
Shopify’s Longo mentioned the importance of bundling discounts during major sales events like Black Friday and Cyber Monday. These strategic promotions can drive significant sales in the home furnishings sector. Using customer insights to guide merchandising decisions, such as product comparisons and new product testing, can further enhance the effectiveness of these promotions.
Real-Time Feedback & Updates
Leveraging real-time customer feedback is a game-changing strategy for improving online merchandising effectiveness. By actively listening to and analyzing customer input, whether through reviews, live chat interactions, or post-purchase surveys, retailers can make immediate updates to their online store, ensuring that customer needs and preferences are swiftly addressed.
This responsiveness goes beyond resolving individual concerns; it enables businesses to identify and act on broader trends. For example, if multiple customers mention confusion about product dimensions in reviews, this feedback can prompt the immediate addition of a detailed dimensions chart to the product page. Similarly, if shoppers express interest in specific features not highlighted in product descriptions, these details can be updated in real time, enhancing clarity and boosting confidence in purchase decisions.
Real-time feedback loops also allow retailers to refine their product offerings and merchandising strategies. By tracking which items receive the most praise or complaints, retailers can adjust inventory, update marketing strategies, or spotlight high-performing products to capitalize on their popularity.
“Customers want to feel heard, and their feedback is a goldmine of actionable insights,” concluded Khoury. “When you use their input to make immediate improvements, it elevates the shopping experience and builds trust and loyalty. Shoppers are more likely to return when they see tangible responses to their suggestions.”
Additionally, incorporating customer feedback into personalization efforts can significantly enhance engagement. For instance, feedback-driven algorithms can recommend products based on recent preferences shared by shoppers, offering a tailored experience that mirrors the attentiveness of in-store interactions.
Implementing tools like sentiment analysis, real-time analytics dashboards, or direct integration of reviews into the online merchandising platform makes this process scalable and efficient. Retailers that excel in responsiveness create a cycle of continuous improvement that keeps their digital storefront dynamic, relevant, and aligned with their audience’s expectations.
In an increasingly competitive online landscape, this ability to pivot quickly based on customer insights can make the difference between a good and great store. By maintaining high satisfaction and loyalty levels, retailers attract more buyers and encourage repeat purchases, strengthening their long-term success.
Practical Tips & Effective Strategies
1. Establish a Strong Foundation: Before experimenting with advanced tools like AR/VR, ensure your platform is robust and adaptable. This solid foundation will support the successful scaling of new technologies.
2. Measure Investment Impact: Track and analyze the ROI of your merchandising investments. Laura Khoury emphasizes the significance of optimizing based on data-driven insights.
3. Continuously Engage With Customers: Utilize interactive Product Detail Pages (PDPs) to enhance engagement. As Ian Leslie and Laura Khoury suggest, incorporating tools like style quizzes, configurators, and visualizers can increase dwell time and drive conversions.
Conclusion
Excelling in online merchandising requires a blend of innovative tools, strategic approaches, and a commitment to personalization. By leveraging technologies like AR, AI-driven automation, and live consultations, retailers can create engaging, efficient, and tailored shopping experiences that resonate with modern consumers. A unified commerce strategy further strengthens the customer journey, seamlessly integrating online and offline touchpoints. Real-time feedback loops and data-driven insights ensure businesses remain agile, continually adapting to shopper preferences. Effective online merchandising is about more than just showcasing products. It’s about building trust, fostering loyalty, and setting your brand apart in a competitive digital landscape. With the right strategies and tools, retailers can elevate their online presence and drive lasting success.
HIGHLIGHTS:
“When you use their input to make immediate improvements, it elevates the shopping experience and builds trust and loyalty.” - Laura Khoury, CEO, Shoptelligence
A feature about Home Furnishings Association's retail members, legislation affecting the furniture industry and other retail news from HFA.