This research consolidates our learnings on Wayfair since 2018 and after 25+ hours of executive interviews exploring: 

  • Fundamentals of Wayfair’s vertically-integrated model 
  • How it prices products relative to other retail categories 
  • How Wayfair structured its CastleGate logistics network 
  • How a sofa flows through value chain in CastleGate vs drop shipped to Overstock 
  • How IKEA is shifting from physical to omnichannel compared to Wayfair
  • How when bankrupt and working capital challenges of niche retailers

Wayfair Business Model 

Wayfair is a vertically integrated ecommerce retailer in the home furnishings industry. It takes minimal inventory risk and owns the logistics infrastructure to ship goods from suppliers in Asia to customers in the west.  

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