The surge in the demand for online home decor and furniture shopping has been rapid, propelled by discerning consumers seeking unparalleled convenience in the digital age. Factors like the burgeoning trend of home renovation and interior design, an expansive spectrum of choices, and the ability to compare prices effortlessly have significantly driven the adoption of home decor and furniture shopping apps.
In terms of market growth, stats show that the global home decor and furniture market was valued at $12 billion in 2023. This value is further expected to grow at a CAGR of 7% till 2030.
One of the leading players in this market is Wayfair which has been reforming access to home decor and furniture items with no need to reach out to brick-and-mortar stores. The app currently operates 38 delivery centers serving global clientele.
Seeing all the stats and popularity of Wayfair, it makes a lot of sense for digital entrepreneurs to enter this lucrative business space. In this blog post, we will put the spotlight on WayfairÔÇÖs business model, how the app makes money, and how to build a furniture app like Wayfair.
Wayfair App: A Brief Overview
Wayfair is a leading app for home decor and furniture shopping founded in 2002 by Niraj Shah and Steve Conine. Wayfair was developed with a commitment to providing customers with the products they need at their leisure and at the desired prices.
It provides a diverse product range, ranging from furniture, toys, decor, travel accessories, and pet supplies, and is dedicated to delivering exceptional user-centric experiences.
At present, Wayfair operates 18 fulfillment and 38 delivery centers representing millions of square feet across Germany, the U.S., the U.K., and Canada. Wayfair boasts 22.3 million active customers and is home to 40 million products. Furthermore, until 2023, Wayfair raised revenue of $12 billion with a total of its 5 brands in the play named: Wayfair.com, AllModern, Birch Lane, DwellStudio, and Joss & Main.
How Wayfair Became a Leading Player in the Online Furniture Industry?
Wayfair is not only the go-to place to fulfill your home furnishing needs. In fact, it is an app with a blend of extensive product range with excellent customer service, delivering optimal user experiences.
Highlighted below are key facets that help Wayfair distinguish itself within the competitive landscape of the online furniture industry. LetÔÇÖs explore.
Huge Collection of Products
WayfairÔÇÖs growing popularity can be attributed to its extensive and diverse collection of furniture products. Be it furniture, decor, kitchen, or home improvement products, and from classic designs to contemporary styles, Wayfair boasts a vast array of options, catering to consumers’ varying tastes and preferences. The huge catalog provides customers with unparalleled choices and positions Wayfair as a one-stop shop for all their home furnishing needs.
Membership Advantage
WayfairÔÇÖs MyWay membership program has significantly contributed to its success and popularity. The app members have to pay an annual fee of $29.99 and they can leverage the benefits like discounts, easy access to sales, installation of bought items, next-day delivery, and free shipping.
All this enhances the shopping experience of the customers, ensures a stream of repeat business, and makes Wayfair stand in the competitive online home decor and furniture market.
Affordability
Pricing plays a pivotal role in consumer decisions and Wayfair has positioned itself amazingly in this aspect as well. Leveraging its operational efficiency, the app manages to offer competitive pricing without compromising on the quality of its products.
This commitment to affordability attracts a lot of shoppers and contributes to WayfairÔÇÖs market share and consistent growth.
Sustainability
As environmental consciousness continues to influence consumer choices, Wayfair has embraced sustainability as a key tenet of its business model. It has acquired multiple green certifications named Recycled, Water Efficient, Environmentally Preferred, Energy Star Certified, and more.
Excellent Customer Service
Customer service is an essential aspect of having an excellent business reputation and WayfairÔÇÖs success is underscored by its quality customer service. It has a responsive customer support system, ensuring that shoppers receive quick assistance and solutions to their queries.
This enhances the overall buying experience of the customers and contributes to positive word-of-mouth marketing, building WayfairÔÇÖs reputation as a customer-centric app.
Must Read: How to Start a Furniture Resale Marketplace.
How Does Wayfair Make Money?
It does not matter which revenue generation channel you choose, generating maximum ROI is always the focus. So, before stepping towards launching an app like Wayfair for your business, it is essential to learn how to monetize.
Wayfair has always leveraged dropshipping to make revenue. However, it has now diversified its revenue strategies which are listed below.
Product Sales
Wayfair purchases products in large quantities and resells them for profit. The company does engage in drop shipping to some extent. When a customer places an order with Wayfair, it assigns the order fulfillment responsibility to its trusted partners. It does not charge any fees for forwarding the business and even covers the shipping costs.
In-App Advertisements
Online furniture businesses have the leverage to buy sponsored ad placements on the Wayfair website. These ads are usually positioned in the product search results. WayfairÔÇÖs video content or sponsored brand posts can be leveraged to promote ads. Here, sponsored ads may attract a fixed fee or a percentage of every subsequent sale.
Installation Services
Wayfair has a trusted partner, Handy to fulfill the customerÔÇÖs furniture assembling requirements. It directly connects the customers with certified installation experts of Handy and streamlines the entire furniture assembly process for the customers. The fee associated is determined by the specific product ordered and requires assembling. The earnings are then further split between Wayfair and Handy.
Interchange/Transaction Fees
Wayfair enables payments via credit cards with access to benefits like discounts, rewards, and zero annual charges. Wayfair makes money when the customer uses WayfairÔÇÖs branded Mastercard to pay for their purchase. The Mastercard collects fees from the merchant and further shares it with Wayfair.
Ready to Start an Online Furniture Business?
How to Launch a Furniture Shopping App like Wayfair
Building a furniture app like Wayfair for your eCommerce business is imperative but daunting as well, requiring substantial time and effort. It is the reason utilizing readymade mobile apps is recommended. By leveraging turnkey apps, you will save time and resources, and bypass the tedious development process, expediting the time-to-market.
YoKart is one such eCommerce software that gives digital entrepreneurs feature-rich readymade apps – both mobile and web applications. These are available for both Android and iOS users. Moreover, YoKart is equipped with essential features and pre-integrated third-party APIs right out of the box. Other features that mobile apps include are:
- Multichannel sales
- Push notifications
- Reports and analytics
- Voice search
- Loyalty programs
Get Feature-Rich Mobile Apps for Your Furniture Business
Conclusion
Now that you have explored the Wayfair furniture app’s success, and what factors contributed to its prominence, it is time to launch a similar app.
However, to establish a strong foothold in the furniture segment and launch an app that aligns with consumer demand, choosing the right eCommerce solution can help. You can read this blog and pick the ideal solution that walks you through the journey of building an app like Wayfair.
FAQs
Q1: What is the cost to build an app like Wayfair?
Ans: The cost of building a furniture app like Wayfair varies on multiple factors like design intricacy, development duration, app functionalities, and more. The expenses can range from hundreds to thousands of dollars. Also, the chosen development approach significantly influences the cost. For example, the MVP approach entails vital features, thereby minimizing initial expenses but potentially necessitating scalability later on. On the contrary, utilizing eCommerce solutions can reduce the upfront cost. So, having clarity on the feature list, efficient planning, and counting on the right development approach can help analyze expenses and build a furniture app like Wayfair.
Q2: How much time does it take to launch an app like Wayfair?
Ans: The timeline to build a furniture app like Wayfair may vary depending on the development approach you leverage. Opting for a custom-built solution involves sequential stages encompassing market research, planning, and design, spanning a minimum of 6 months for the development process. Alternatively, adopting a turnkey solution significantly reduces time-to-market, requiring only a few days to successfully launch your Wayfair-like furniture app.
Q3: What are other sites like Wayfair?
Ans: In addition to Wayfair, several prominent competitors in the online home goods and furniture market include bedbathandbeyond.com, homedepot.com, and lowes.com. These apps similarly offer a diverse range of home products, furniture, and decor items providing customers with alternative options and choices for their shopping needs in the home improvement and furnishings market.
