Do you remember Amazon? I asked if you remember because Amazon and Wayfair are almost of the same world. Wayfair is a joint company founded far back as 2002 in Boston, Massachusetts, the USA by Steve Conine and Niraj Shah.
What is Wayfair?
Wayfair is an e-commerce company that has succeeded in employing thousands of people all across the world. It is one of the greatest e-platform that has grown over the years which operates in appliances, home furniture, and interior decorations.
Wayfair is an electronic commerce company through which people buy goods, products, commodities, and sell through the Internet. Money is earned through drop shipping as they do not have stock physically stored, rather they have clients or a network of people who ship products, commodities, and goods to clients.
Wayfair ranked 6th in the category of e-commerce, it ranked 66th all across the globe and 231st as of June 2021. This has made it one of the successful online platforms in North America.
However, irrespective of how great you are, there is always a competitor. Remember, back then in primary or secondary school, you have someone always topping the class, then others who awoke started competing with the star of the class to outshine him. That is how it is with Wayfair. “Who are these competitors and what are their revenue models?”
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Top Wayfair Competitors and its Revenue Models.
Amazon
Since its establishment, Amazon’s growth has made waves and this makes it a direct competitor to Wayfair.
Amazon has a great market share that Wayfair can’t push off, but it can be challenged through the home and furniture segments as Amazon deals with electronics, foods, beauty products, medicine, etc, unlike Wayfair which main focus is on Furniture and Home Decor.
Amazon generates total revenue of 386.06 billion USD while Wayfair generates 14.14 Billion USD.
IKEA
This is one of the world’s Largest brands that deals in the home furniture, kitchen products, and home decor which was founded by Ingvar Kamprad in 1943 situated in Sweden.
IKEA is one of the greatest competitors of Wayfair due to its online stores and in-stores(offline) presence. It generates a revenue of $46.8 billion (€39.6 billion) compared to Wayfair.
Walmart
Walmart was founded in 1962 by Sam Walton, it is located in Bentonville, Arkansas. It is one of Wayfair’s oldest competitors.
It has 11,484 stores globally which deals in home furnishings, including tables, kitchen cabinets, décor pieces, beds, mattresses, sofas, and more. Walmart has control over 10.1% of the home furnishings and 4.7% of the online furniture market. Its revenue for 2020 grew by 6.7% to $559 billion.
eBay
eBay is one of the largest platforms founded In 1995 with its headquarter in San Jose, California, USA. It deals with buying and selling used and new pieces of furniture, clothes, electronics, etc. It has more products than Wayfair does. it model of sales is auction styles while Wayfair uses drop shipping.
Its revenue model was 10.8 billion USD, but its gross value was $90 billion which influenced its revenue by 19% which calls the shot of enticing customers than Wayfair.
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Bestbuy
Their specialty used to be audio stores, but as they grew, they broadened into electronic, technological devices, house brand products, etc. Founded by James Wheeler and Richard M. Schulze in 1966. However, its name changed to ‘Sound of Music’ in 1983.
It is a competitor to Wayfair because of the usage of an environment-friendly technique of using e-waste recycling to produce its appliances as well as helping society by lessening carbon emissions by 51%, etc. Its revenue is 43 billion USD.
Costco
This is also one of the top competitors of Wayfair, although indirectly. Costco was established in 1983, Issaquah, Washington. The company deals in wholesale of organic foods like meat, chicken, prime beef, etc, and it has warehouses all over the world as it is famous for creating Job opportunities. Both Costco and Wayfair deal in different products, but they are competitors on the level of revenue.
Its generated revenue us $166.76 billion for 2020, up 9.21% from $152.7 billion in 2019
Home Depot
This was founded in 1978 in Atlanta, Georgia. It is a retailer company that deals in furniture, bedding, lighting, throw pillows, and home accents. Since its establishment, it has succeeded in producing 70 distribution centers across the US.
It is a competitor to Wayfair because the Client can shop all the needful things at a go in a single store compared to Wayfair, its full-year revenue surged from 19.85% to $132.11 billion, up from 2019.
Lowe
Lowe was founded in 1921, Moorseville, North California. They specialize in home improvement furniture, interior décor, and appliances like Home Depot. It has succeeded in employing over 300,000 employees and created over 2,200 stores.
It is Wayfair’s competitor due to its home furniture and decoration products. Its revenue model as of 2020 was $89.6 billion
Other Top Competitors
- RH Restoration Hardware
- Target
- Haverty Furniture Companies
- Etsy
- 1stDibs
- Urban Outfitters
- Williams-Sonoma Inc
- Ashley Furniture.
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Conclusion
With all the Competitors, Wayfair has managed to stand tall by earning good revenue through its drop shipping model, marketing and it has succeeded in creating its presence in the mid of people through its singular focused approach on decor and home furniture as its niche. Amidst the competition, it has succeeded in managing its competitors by embracing them positively.
Some other companies owned by Wayfair include Joss & Main, Allmodern, birch lane, perigold.
If you find this helpful, kindly subscribe and share. Learn from Wayfair as well, do not see your competitors as enemies, instead, embrace them positively, let them inspire you to do satisfactorily.
