About Wayfair

Wayfair Inc. (Wayfair) operates as an online destination for the home. Through its e-commerce platform, the company offers customers visually inspired browsing, compelling merchandising, easy product discovery and attractive prices. The company focuses on bringing its customers an experience that is at the forefront of shopping for the home online. The company's customers span a wide range of demographics, with annual household incomes ranging from $25,000 to over $250,000, and also include business professionals, from small startups to global enterprises. The company's selections of furniture, decor, housewares and home improvement products appeal to its customers' different tastes, styles, purchasing goals and budgets when shopping for their homes and businesses. To meet its customers where they are, the company offers a family of sites, each with a unique brand identity that offers a tailored shopping experience and rich product selection to a different target audience. Wayfair: The destination for all things home. Joss & Main: The ultimate style edit for home. AllModern: All of modern, made simple. Birch Lane: Classic style for joyful living. Perigold: The destination for luxury home. Wayfair Professional: Just right for Pros. Wayfair represents a significant majority of the company's net revenue and is the only one of its sites that also operates internationally, operating as Wayfair.ca in Canada, Wayfair.co.uk in the United Kingdom, Wayfair.de in Germany and Wayfair.ie in Ireland. On its sites, the company also features certain products under its house brands, such as Three Posts and Mercury Row. Through these house brands, which feature curated selections refined by style and price point, the company helps its customers navigate its vast product assortment to find items that uniquely match their needs. The delivery experience and overall customer service the company offers its shoppers are central to its business. The majority of its products are shipped to customers directly from the company's suppliers with an increasing proportion flowing through its own logistics network. The company has invested considerably in its logistics network and leverage these capabilities to improve the experience for both customers and suppliers. This network consists of CastleGate and the Wayfair Delivery Network (WDN). The company also offers inbound services via CastleGate Forwarding (CGF). The company's CastleGate facilities enable suppliers to forward-position their inventory in its warehouses, allowing it to offer faster delivery. Through WDN, the company can directly manage large parcel deliveries via consolidation centers, cross docks and last mile delivery facilities, which, alongside CastleGate, enables it to speed up deliveries, decrease its reliance on third parties and undertake efforts to reduce damage. The company's CGF services allow its suppliers to unlock efficiencies on inbound logistics, including through Asia-based product consolidation and port-to-door freight forwarding solutions, which ultimately result in faster deliveries to its customers. These investments in logistics capabilities result in an enhanced experience for the company's customers and suppliers. In addition to logistics, the company offers a range of supplemental media services in support of a seamless selling experience for suppliers. The company provides superior customer service is key to delighting its customers. Growth Strategy The key elements of the company's strategy are to continue to build its brands by delighting its customers; increase repeat purchases from existing customers and acquire new customers; invest in technology to further improve its customer and supplier experiences; grow certain categories where it under-index the broader home goods market today; increase delivery speed and improve the delivery experience for its customers through the continued build-out of its proprietary logistics network; continue to expand internationally; and continue to execute omni-channel strategy with the launch of physical retail stores across its family of brands; and opportunistically pursue strategic acquisitions. Segments The company operates through the United States (U.S.) and International segments, including its businesses in Canada, the United Kingdom, Germany and Ireland. The U.S. segment primarily consists of amounts earned through product sales through Wayfair's family of sites in the U.S. The International segment primarily consists of amounts earned through product sales through Wayfair's international sites. Customers The company offers a broad selection and choice. The company has one of the largest online selections of furniture, decor, housewares and home improvement products, with over 30 million products from over 20 thousand suppliers. The company has built a portfolio of over one hundred house brands, which offer curated brand experience, making it easier for customers to discover styles, products and price points that appeal to them. Convenience and value are central to the company's offering. The company is a one-stop shop for consumers in the home goods category, with competitive pricing reflecting the many supplier participants on its platform and a differentiated and robust merchandising experience. For items shipped from its CastleGate warehouses, the company is able to deliver many products to a majority of the U.S. population in two days or less. The company gives customers inspirational content and an engaging shopping journey. To inspire customers, the company produces beautiful imagery and highly-tailored editorial content both in house and through third parties. The company uses personalization to create a more engaging consumer experience and it allows customers to create looks they love with tools, such as its Room Ideas. More than half of the traffic coming to Wayfair.com is from mobile devices and the company's investment in mobile allows it to deliver value, convenience and inspiration to consumers anytime and anywhere. The company's mobile app also offers customers a powerful way to shop for their home from their home using its View in Room 3D augmented reality tool. The company supports its customers' shopping journey from start to finish through everything from financing solutions to customer support. The company's private label and co-branded credit cards build loyalty and encourage repeat shopping with cash back rewards. Superior customer service is a core part of the experience the company offers shoppers. The company offers specialists focused on specific product classes. Marketing The company uses a variety of marketing and advertising efforts to drive customer engagement across all of its channels, strengthen and reinforce brand and product awareness, as well as attract new customers and encourage repeat purchases from existing customers. The company's paid advertising efforts consist primarily of online channels, including search engine marketing, display advertising and paid social media, and to a lesser extent direct mail and television advertisements. The company's non-paid advertising efforts include search engine optimization, non-paid social media, mobile push notifications and email. Upon acquiring a customer or a potential customer's email address, it seeks to increase their engagement with its sites and drive repeat purchases. This effort to increase engagement and repeat purchasing is driven by all of the company's marketing tools, including personalized email marketing efforts and customer retargeting. Seasonality The company's business is affected by seasonality, which historically has resulted in higher sales volume during its fourth quarter (year ended December 31, 2023), which ends December 31 and includes the November and December holiday sales period. Competition The company's competition includes furniture stores, big box retailers, department stores, specialty retailers and online retailers and marketplaces in the U.S., Canada, the United Kingdom, Germany and Ireland, including: Furniture Stores: American Freight, Ashley Furniture, Bob's Discount Furniture, Havertys, Raymour & Flanigan and Rooms To Go; Big Box Retailers: Home Depot, IKEA, Lowe's, Target and Walmart; Department Stores: JCPenney, Macy's and Neiman Marcus; Specialty Retailers: Arhaus, At Home, Container Store, Crate and Barrel, Design Within Reach, Ethan Allen, Floor & Decor, LL Flooring, Restoration Hardware, Room & Board, Serena & Lily, TJX Companies and Williams Sonoma; Online Retailers and Marketplaces: Amazon, Build.com, Houzz, eBay, Etsy and Bed Bath & Beyond; and International: Argos, Canadian Tire, John Lewis, Leon's, Next, Otto, Westwing, and XXXLutz, in addition to several of the companies listed above who also compete with the company internationally. History Wayfair Inc. was founded in 2002. The company was incorporated in 2014.