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IP Interview
Published October 23, 2023

Overstock.com vs Wayfair: Product Flow through the Network

Executive Bio

Wayfair Supplier

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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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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