Partner Interview
Published December 9, 2025
Wayfair: CastleGate 3PL Opportunity & Replatforming
inpractise.com/articles/wayfair-castlegate-3pl-opportunity-and-replatforming
Executive Bio
Former Head of Product at Wayfair
Summary
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Interview Transcript
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Was this mostly meant to give more confidence to existing CastleGate customers to put more inventory into the program, or were those 300 to 500 participants in the multi-channel new customers? Was it mainly to attract new customers into the program or to satisfy existing customers?
Another impetus was the low penetration of CastleGate, which was at a multi-year low. Walking into a warehouse, you could see a small portion with activity, while the rest was empty. Empty conveyor belts highlighted the cost. They explored ways to improve penetration, including multi-channel, enabling multi-box products in CastleGate, reducing storage fees, and removing pick-pack and shipping fees. Multi-channel seemed to have the potential for the biggest impact on CastleGate penetration. This made it more relevant for leadership to focus on bringing this offering on par with others.
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