Wayfair has grown to be one of the major online retailers of home goods in the globe. The company has found the online marketplace business model to be the most profitable for them. It’s employing over 12000+ employees who cater to the needs of 20 million+ consumers. The primary source of its revenue comes from the USA – 86% from over 28 million orders delivered to its customers in a single year.
You’ll find mainly five brands on Wayfair, and the stock of these brands comes from more than 7000 merchants. Most of these merchants are small, family-owned businesses. Wayfair helps their products to get in front of the eyes of Wayfair’s 20 million+ customers online.
Key Partners of Wayfair Top Selling Online Products
5 Brands consortium – Wayfair.com, AllModern, Birch Lane, Joss & Main, and DwellStudio.
Wholesalers, manufacturers, and suppliers.
Product delivery partners – UPS, DHL, and FedEx.
Top Selling Online Products Understanding Wayfair Business Model for eCommerce
Key Business Activities of the company
- The company’s primary goal is to build one of the largest online selections of furniture, and indeed, they have beautifully managed to grow as the fifth largest e-retailer of home goods in the world.
- Analyze customer behavior and understand their changing needs to launch new products engineered and designed by experts.
- Continuous maintenance and running updates of the online platform – Wayfair.com
- Managing the catalog, ensuring fast and agile delivery.
- Solving queries of their customers through their customer service department.
- Lastly, handling contacts and deals to run for the customers alongside Returns and Exchanges at Wayfair & Joss and Main.
Wayfair Value Propositions
The company mainly has four value propositions under its current business model.
- To offer this vast selection of products while holding minimal inventory.
- To enable individuals to locate the ideal product at the current cost.
- To help people find the perfect product at the right price.
- To empower providers to offer their full stock choice effectively.
How do they manage Customer Relationships?
Wayfair online operates as an e-retailer and doesn’t focus on having offline retail stores. The company strives to offer a tailored shopping experience across its portfolio of five different brands – Wayfair.com, AllModern, Birch Lane, Joss & Main, and DwellStudio. To attract new customers, they run flash sales on festivals and holidays. To retain existing customers, they offer exclusive deals only for existing shoppers.
To help its suppliers ship directly to the customers through the model of Drop Shipping, essentially cutting delivery costs and improving delivery speed significantly.
The company’s customer service department is pretty agile as they offer 24/7 personal assistance to all of their customers to buy their products confidently! The company’s return policy is also very flexible, which helps the company to build customer confidence. This flexible policy is also there with Joss & Main.
The company offers four delivery options: economy shipping, Express Shipping, Expedited Shipping, and Ground Shipping. They also offer free shipping over $49.
Key Resources that the company has
- Strong Brands aggregation with its five niche websites: Wayfair.com, AllModern.com, BirchLane.com, JossandMain.com, and DwellStudio.com.
- Technology and operational platform, starting from product manufacturing to the final delivery at the customer’s place.
- Selling millions of products from over 7 thousand supplier networks of small and family-run businesses.
- Dropshipping model – Suppliers ship their products directly to the customers, eliminating the company’s stock inventory.
- Tracking consumer buying patterns and shopping habits to optimize selling and retargeting.
- Automated systems for order fulfillment and logistics flow.
- Human resource – Engineers, data scientists, and consumer service staff.
Channels of operation
The online presence of five brands selling products through mobile-optimized websites, mobile applications, Telephones, Gift Cards, and promotion through Social Media Accounts.
Some interesting statistics of Wayfair
In the last year, 79% of Wayfair’s customers have used their smartphones for shopping online.
Wayfair.com was the 13th most surfed website to buy things online in the USA.
96 out of 100 customers of wayfair.com also use amazon.com to shop online.
Author Bio: Vipin is a Senior Business Development Executive with a demonstrated history of working in the computer software industry and digital marketing space. With his full-time job at IT MNC, he is running a blog to help make shopping hassle-free.