Overstock.com vs Wayfair: Product Flow through the Network
Wayfair Supplier
inpractise.com/articles/overstockcom-product-flow-through-the-network
Wayfair Supplier
The expert is a Wayfair supplier and has 5 years of experience utilizing CastleGate. Her experience as a supplier to several home goods retailers (Overstock, Wayfair, Amazon, and others) has provided her with an understanding of the benefits and costs associated with dealing with all major retailers in the US home furnishing space.
Interview Transcript
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Which of the two methods did not accept the price increase?
The products we listed online were removed because our pricing was not competitive.
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For the purpose of this exercise, let's focus on Overstock as you are more familiar with them.
Overstock's process is similar to Wayfair's dropshipping. We ship the products from our warehouse to the customers. The only difference with Overstock is that we have a high return rate, almost 20%. This makes their price higher than other customers because we need to factor in the return costs into the price we sell to them.
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Do they know the inventory at the warehouse level in the US, or at the manufacturing plant in the Asia?
We have a column of products that are only on the water that they can start selling. I believe only Wayfair has this visibility because they started selling those.
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