This is a snippet of the transcript, sign up to read more.
Another reason you didn't mention is that competition has become more fierce. For example, Amazon, which at one point didn't prioritize its home improvement category, stopped marketing it during Covid. Wayfair benefited from that since everything else was closed. However, Amazon has since prioritized it again, making it tougher for Wayfair to compete.
This is a snippet of the transcript, sign up to read more.
Eventually, once companies like Feedonomics emerged, which help with feed optimization and Smartly which helps to make images in PLAs and on social media more compelling, it turned out that Wayfair was not ready to compete with that. The problem was that by that time, there was already legacy software, and many people who built that software were let go during layoffs. The tech team was transferred to India in an outsourced mode. Obviously, they can't be tasked with maintaining all these tools and competing with market solutions where entire companies are built around them, with enough resources and research to develop them further.
This is a snippet of the transcript, sign up to read more.
If Wayfair were to use Klaviyo, they could handle this in a much more robust way. There are more solutions than just Klaviyo, like Braze and other companies. My point is, as you mentioned, Wayfair is somewhat stuck with software acquired long ago, and there aren't necessarily the capabilities to maintain it and ensure a good return on investment.
This is a snippet of the transcript, sign up to read more.
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2025 IP 1 Ltd. All rights reserved.
Subscribe to access hundreds of interviews and primary research