What is Wayfair's Business model?

by tbk125

Posted: 11 years ago 4 replies

ECOMMERCE

I am very curious to know the business models of large scale solely e-commerce businesses. Is Wayfair just a drop shipper? Do they have a mix of products that they actually stock? What is the most scalable business model for a e-commerce operation? Just some questions that have been in my head for a while...

#business #model #wayfair

andrewc5 11 years ago

They at least started out dropshipping. I wouldn't be surprised if they actually stock some popular items now.

Here's an article about them. Wayfair
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dburk

11 years ago

Hi tbk125,

Wayfair is an an eCommerce business that was formed by acquiring and consolidating many of the most successful eCommerce stores, built over the past decade, into one big super store (A giant umbrella company). So you might say that their business model is to acquire highly successful eCommerce stores, and roll them up into their online supermarket.

Online shoppers navigating the Web's vast offering of home goods need only stop at Wayfair (formerly CSN Stores). The company is a leading online retailer of more than 11,000 brands of products, including cookware, home and office furniture and decor, lighting, strollers, and more. Seeking to become the Amazon.com of home goods, the e-tailer in 2011 merged some 200 specialty e-commerce sites, such as AllModern.com, Cookware.com, Luggage.com, SimplyDesks.com, and Strollers.com, all under the Wayfair.com brand. Founded in 2002 by CEO Niraj Shah and chairman Steve Conine as a single shopping destination (RacksandStands.com), the company changed its name from CSN Stores to Wayfair in 2011.

Source: https://www.google.com/finance?cid=6850170

Wayfair on the Forbes America's Most Promising Companies List

Since the company was formed by consolidation of many different businesses, it has many competing business models that are employed within the umbrella company, to get an idea of how complex it is take a look at this article:

An E-Commerce Giant Reveals Its Strange Strategy: Sending Customers To Competitors - Forbes

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AliPali 11 years ago

I know the use one of the suppliers that I use
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- OnlineStoreHelp 11 years ago
  
  They are still a hybrid model. Some things they warehouse and fulfill themselves but for the most part they are still a dropshipping company.
  
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What is Wayfair's Business model?

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