If you‘ve been searching for affordable furniture online, you‘ve probably come across both Amazon and Wayfair. But here‘s a question I‘m often asked: does Amazon actually own Wayfair? Or are they competitors?
The short answer is no – Amazon does not own Wayfair. But the relationship between the two ecommerce giants is complicated. Keep reading for the insider details so you can make the best choices for your home!
Wayfair: Everything You Need to Know
First, let‘s get up to speed on Wayfair. In case you‘re not familiar, Wayfair is a huge online retailer that sells furniture, home décor, kitchenware, rugs – pretty much everything for your home.
Wayfair was founded back in 2002 and has grown rapidly to become one of the top online destinations for home goods. Today, the company employs over 16,000 people worldwide.
In addition to Wayfair.com, the company also owns several other home-focused ecommerce sites:
- Joss & Main: Stylish furniture and décor at a discount
- AllModern: Contemporary, modern furniture and decor
- Birch Lane: Classic home furnishings and furniture
- Perigold: High-end, luxury home items
So when you shop at any of these sites, you‘re doing business with Wayfair the company, not Amazon.
One important note – Wayfair has faced some controversies over the years around its business practices. For example, in 2019 employees organized a walkout over the company selling furniture to immigration detention facilities. There have also been issues around work culture and layoffs.
As a shopper, it’s helpful to be aware of these incidents and Wayfair’s track record as a business. But many still entrust them for affordable home upgrades.
Why Hasn‘t Amazon Acquired Wayfair?
Given Amazon‘s history of acquiring companies like Zappos and Whole Foods, you might be wondering – why hasn‘t Amazon just bought Wayfair?
It‘s a good question. Here are some of the likely factors:
- Amazon already sells plenty of furniture and home goods themselves. So they may not need Wayfair‘s brands.
- Federal regulators might block Amazon from buying Wayfair over antitrust concerns.
- Wayfair‘s market value tops $10 billion, making them an expensive purchase.
- Combining the operations and technology would be a complex challenge.
- Wayfair employees might clash culturally with Amazon‘s intense workforce norms.
As industry analyst Neil Saunders told Business Insider: "I think Amazon realizes it would be incredibly difficult to integrate Wayfair into its business, especially as Amazon would likely have little interest in maintaining Wayfair as a separate brand for any period of time."
So for now, a merger is unlikely. But as we‘ll explore later, that could possibly change down the road.
Battle of the Furniture Giants: Amazon vs. Wayfair
Alright, now that we‘ve got the ownership question covered, you might be wondering how Amazon and Wayfair stack up for online furniture shopping. Is one better than the other? Let‘s compare!
Furniture selection
- Wayfair offers over 18 million products across their family of home furnishing sites. Huge selection.
- Amazon also has a massive 350 million+ item catalog, but not all home-focused.
Prices
- Amazon tends to have lower prices and takes smaller margins than Wayfair.
- But Wayfair runs frequent sales (15-20% off) to compete with Amazon‘s low prices.
Shipping fees
- Amazon Prime members get free 2-day shipping on millions of items.
- Wayfair charges for shipping on orders under $49. Free shipping over $49.
Convenience
- Amazon checkout fast and easy with saved payment/shipping info.
- Wayfair checkout pretty smooth too but discounts sometimes don‘t apply automatically.
Customer service
- Amazon recently expanded customer service network. But quality still varies.
- Wayfair is known for responsive customer service via chat, email, phone.
Return policies
- Amazon and Wayfair both offer free returns within 30 days for most items.
- Wayfair buyers pay for return shipping. Amazon offers in-store returns.
Mobile experience
- The Amazon app makes it easy to shop/buy. Wayfair‘s app also user-friendly.
Rewards programs
- Amazon Prime members get lots of perks. Wayfair Rewards provides points for purchases.
So which is better? Well, it depends on your priorities as a shopper. Let‘s quickly recap the key differences:
- Selection: Wayfair superior for furniture specifically
- Affordability: Amazon wins on low prices
- Convenience: Amazon edges out on shipping and ease of checkout
- Service: Wayfair‘s support stands out
My advice? Take advantage of the best of both worlds! Price compare and look for free shipping deals. And don‘t be afraid to use customer service if needed.
Could an Amazon Acquisition of Wayfair Happen?
Alright, let‘s gaze into our crystal balls. Despite the challenges, could Amazon end up acquiring Wayfair down the road?
Here are a few reasons why it could make sense:
- Amazon wants to expand its capabilities in furniture, a lucrative market
- Acquiring Wayfair‘s brands would give Amazon more premium offerings
- Amazon could eliminate a top competitor and take their customer data
- Wayfair‘s supply chain network could improve Amazon‘s furniture delivery
But some factors still make the deal unlikely or very difficult:
- Wayfair‘s high valuation (over $10 billion market cap) makes them costly to acquire
- Combining technology systems and operations would be complex
- Regulators may still oppose Amazon expanding further through mergers
- Differences in workplace culture could hinder integration
The Wall Street Journal reported in June 2022 that Amazon has at least explored an acquisition, recognizing Wayfair‘s appeal in furniture. But for now, an official merger still seems doubtful.
In the end, only time will tell if Amazon and Wayfair join forces. As a shopper, keeping an eye on both for deals is your wisest play!
Inside the $130 Billion Online Furniture Market
Context on the broader furniture industry is helpful to understand Amazon and Wayfair‘s market positions. Let‘s get up to speed!
The market for online furniture sales has exploded in recent years. According to Statista, global online furniture and homeware sales totaled $131 billion in 2021 and are forecast to reach $215 billion by 2027.
Driving this growth is the convenience of buying furniture from anywhere, combined with enhanced virtual experiences like 3D room modeling. Plus, consumers today – especially millennials – are more comfortable furnishing their homes online.
Amazon and Wayfair sit at the top of the online furniture industry by market share:
| Company | Market Share |
|---|---|
| Amazon | 45% |
| Wayfair | 16% |
| Overstock | 6% |
| Walmart | 5% |
| IKEA | 3% |
With almost 50% market share, Amazon dominates. But Wayfair remains a major force at 16% share.
Wayfair’s net revenue hit $13.7 billion in 2021, compared to Amazon’s furniture sales of around $20 billion. So while Amazon is the giant, Wayfair remains a sizable player focused just on home furnishings.
Looking ahead, the future is bright for both companies in this growth industry – whether direct competitors or eventual partners!
7 Tips for Furniture Shopping from the Experts
When browsing for furniture on Amazon, Wayfair, and other sites, keep these handy tips from interior design experts in mind for scoring deals and quality:
1. Measure thoroughly – Carving out time to measure your space precisely will ensure items fit when delivered.
2. Read reviews – Reviews and photos from other buyers provide valuable insight on quality and sizing.
3. Comparison shop – Don‘t buy the first item you see! Price comparing can mean big savings.
4. Avoid trends – Stick to timeless over trendy pieces for furniture you‘ll enjoy for years.
5. Inspect fabric – Zoom in on product images to examine fabric quality and tailoring.
6. Consider bundles – Bundled furniture sets can offer savings compared to individual pieces.
7. Seek help – If unsure, many sites offer free design services to aid your shopping.
Follow this advice for a stress-free and successful furniture buying experience!
The Bottom Line for Consumers
So in the end, what‘s the main takeaway on Amazon and Wayfair for us shoppers looking to furnish our home?
While no corporate merger is imminent, Wayfair remains a leading destination for quality furniture alongside Amazon‘s vast marketplace.
As a consumer, leveraging both sites for selection and prices is your savviest move. And remember to factor in total costs like shipping fees and returns when comparing options.
With millions of home goods to explore, taking the time to research and evaluate purchases is important. But have fun with it! With the right pieces, you can create a personalized living space that suits your style and needs.
So shop wisely, score deals across both Amazon and Wayfair, and enjoy putting together the home of your dreams! Let me know if you have any other questions – I‘m always happy to help.
