Ava AbbottWayfair is an e-commerce company based in Boston, Massachusetts. It was founded by Steve Conine and Niraj Shah in 2002 and now employs over 16,900 people globally. The company operates one of the world’s largest e-commerce platforms for home furniture, appliances, and interior décor.
Its US e-commerce platform attracts over 75 million visitors per month, making it is one of the most successful online stores in North America. According to SimilarWeb, wayfair.com is ranked 6th in the e-commerce category, 66th globally, and 231st globally as of Jun 2021. [1]
The company also operates several e-commerce stores, including Joss and Main, Perigold, AllModern, and Birch Lane. Wayfair Competitors and Alternatives offers over 18 million items from around 10,000 suppliers. Its typical customer has a median income of $75,000 and caters to over 80 million millennials.
In 2020, Wayfair reported total revenues of $14.145 billion and $360.35 million in profits. Wayfair’s sales surged 150% in 2020, which is more than its competitors. To protect its market share, Wayfair has to fend off competitors and alternatives. [2]
Here are top Wayfair’s competitors and alternatives:
1. Amazon
Year founded: 1994
Headquarter: Seattle, Washington
Amazon is the world’s largest e-commerce platform. It started as an online marketplace for books and expanded to cover most types of retail sales, including furniture, home décor, and appliances. Amazon has 1.298 million employees and made $386.064 billion in revenues for fiscal 2020.
According to 1010data, Wayfair is the fastest grower and the leader in online furniture sales, with 33.4% of the market. Amazon is second at 29.7% market share. The two e-commerce giants control 63% of online furniture sales.
However, Amazon’s strong financial position, product variety, extensive distribution network, and cost-cutting customer services like no-cost EMI give it an edge over Wayfair. Regardless of how you look at it, Amazon is Wayfair’s top competitor and alternative. [3]
2. IKEA
Year founded: 1943
Headquarter: Sweden
IKEA is one of the world’s largest furniture brands, with 445 stores in more than 50 countries. It has 211,000 employees globally and offers over 12,000 home furnishings online and through its stores. In 2020, IKEA’s annual revenue was $46.78 billion (€39.6 billion).
Although IKEA has fewer stores than other competitors, it generates more furniture sales revenue than all of them.
The main competitive advantage for IKEA is its ready-to-assemble furniture, which has emerged as the preferred option for consumers. Unlike Wayfair’s online-only approach, IKEA operates both physical and online stores.
It competes favorably online and offline and makes huge profits in both sectors. However, IKEA is a love-it-or-hate-it brand. It offers budget-friendly furniture, but many customers complain about poor quality and complex assembly. Overall, IKEA and Wayfair are the perfect alternatives and evenly matched competitors. [4]
3. Ashley Furniture
Year founded: 1945
Headquarter: Arcadia, Wisconsin
Ashley Furniture is an American chain store and a manufacturer of furniture products. It operates over 1000 stores globally and offers furniture pieces for the living room, dining room, bedroom, and home office.
The company sells products across North America under Ashley HomeStore. In the second half of 2020, Ashley added 4,000 employees and now has over 35,000 employees globally. Ashley HomeStore is the leading conventional furniture store in North America. [5]
In 2020, Ashley generated $6.4 billion in revenues, a 13% increase from 2019. From Jan 2021 to Jun 2022, Ashley will spend $1 billion in manufacturing, distribution, automation, and workforce.
It will increase shipments by 20%, upholstery production by 40%, and domestic bedroom production by 20% in 2021. Ashley is more specialized and experienced than Wayfair. It is Wayfair’s perfect alternative and one of its top competitors. [6]
4. Williams-Sonoma Inc.
Year founded: 1956
Headquarter: San Francisco, California
Williams-Sonoma is one of the largest furniture companies globally, with thousands of customers in more than 60 countries. It operates 650 stores in the US and owns several brands, including West Elm, William-Sonoma Home, Pottery Barn, and Rejuvenation.
All these brands cater to different target markets, which increases Williams-Sonoma’s competitive edge over Wayfair.
Williams-Sonoma generated a record-high revenue of $6.8 billion for fiscal 2020. Its e-commerce business surged 47.9% and contributed about 70% of total revenue. Same-store sales for the entire company increased 25.7%, with double-digit gains for all brands.
Williams-Sonoma Home saw a 26% rise in same-store sales, 25% gain for Pottery Barn, and 25.2% gain for West Elm. Williams-Sonoma’s fast-growing e-commerce business and profitable brands threaten Wayfair’s market share and profits. It is a formidable top Wayfair competitor. [7]
5. Walmart
Year founded: 1962
Headquarter: Bentonville, Arkansas
Walmart is the world’s largest brick-and-mortar retailer, with more than 11,000 stores. It has over 2.2 million employees and operates across 27 countries worldwide. In 2020, Walmart increased the minimum wage of 165,000 employees to US$12, bringing to par with Wayfair.
It plans to continue to invest and raise wages for 425,000 associates in 2021. Walmart’s revenue for 2020 increased 6.7% to $559 billion.
The retail giant offers a wide range of home furnishings, including tables, kitchen cabinets, décor pieces, beds, mattresses, sofas, and more. Customers can purchase its MoDRN furniture collection or products from other brands.
Walmart controlled 10.1% of the home furnishings and 4.7% of the online furniture market. With growing digital sales and huge market share, Walmart is a formidable top Wayfair competitor. [8]
6. RH (Restoration Hardware)
Year founded: 1979
Headquarter: Corte Madera, California
RH (Restoration Hardware) is a luxury furniture company. It offers its products online and via 36 outlet stores in the US and Canada. In 2020, CEO Gary Friedman cut salaries for leadership positions, laid off 440 employees, and furloughed 2,300 workers. These cost-cutting measures paid off and helped RH deliver impressive earnings.
In fiscal 2020, RH’s sales surged 8% from $2.6 billion in 2019 to $2.85 billion, and its shares tripled in value. CEO Friedman is RH’s largest shareholder with a 10% stake in the company and seeks to finance RH’s new galleries.
These galleries will increase RH’s revenues to $6 billion in North America and over $20 billion globally. RH’s ambitious plans will increase its competitive advantage over Wayfair. [9]
7. Target
Year founded: 1902
Headquarter: Minneapolis, Minnesota
Target is one of the largest retail stores globally, with over 2000 stores in the US. The company also offers home furnishings under several in-house brands, including Project62, Hearth & Hand, and Opalhouse.
In 2020, Target’s full-year revenue was $93.6 billion, up 19.8% compared with 2019. It grabbed $6 billion worth of market share from competitors and reported record-high digital sales in 2020. Target is now one of the top 10 e-commerce retailers in the US.
Target collaborates with iconic furniture designers and décor gurus like Levi’s, Dwell magazine, and John Derian to cool and affordable merchandise to consumers. In 2021, Target partnered with the founders of Studio McGee and stars of Netflix’s Dream Home Makeover.
The partnership will deliver a collection of California-meets-French-cottage pieces to Target’s customers. These unique offerings can poach some customers from Wayfair. [10]
8. Costco
Year founded: 1983
Headquarter: Issaquah, Washington
Costco is a members-only wholesale retailer that operates an international chain of membership warehouses. The retailer offers high-quality merchandise from reputable brands at lower prices than Wayfair and other competitors.
Its appliances, housewares, and furniture are subsidized for members, making it the best Wayfair alternative for SMBs and bulk shoppers looking to cut costs. Costco generated $166.76 billion in revenues for 2020, up 9.21% from $152.7 billion in 2019.
Unlike Wayfair, Costco doesn’t offer online ordering for in-store or curbside pickup. However, the company’s online sales surged 91% in 2020. With 552 warehouse clubs in the US and 795 stores globally, Costco dwarfs Wayfair.
In 2020, comparable same-store sales jumped nearly 14%. Costco is one of the best alternatives to Wayfair for SMBs and value-minded consumers. [11]
9. Home Depot
Year founded: 1978
Headquarter: Atlanta, Georgia
Home Depot is the largest home improvement retailer and offers furniture, bedding, lighting, throw pillows, and home accents. The company has about 70 distribution centers across the US and ranks 18th on the Fortune 500 rankings for 2021.
The main advantage for Home Depot is its product variety. Customers can do all their home improvement shopping in a single store, from powered tools to construction materials, fittings, and furniture.
In 2020, its customer’s average purchase value rose nearly 11% to $75.69. Sales of big-ticket items like appliances and vinyl plank flooring increased, leading to a 24% rise in sales per square foot to $528.01. Its digital sales grew by 86% in 2020.
As a result, Home Depot’s full-year revenue surged 19.85% to $132.11 billion, up from 2019. Home Depot’s e-commerce strategy is delivering impressive results and increases its competitive advantage over Wayfair. [12]
10. eBay
Year founded: 1995
Headquarter: San Jose, California
The eBay marketplace is the largest platform for buying and selling used or new furniture, clothes, electronics, and more. It is one of the oldest e-commerce companies globally and offers more varieties of products than Wayfair.
Its home furniture offerings are similar to Wayfair’s inventory but more affordable to the consumers than Wayfair. The company’s customer-to-customer business model relies on auction-style sales, while Wayfair focuses on dropshipping.
In Feb 2021, eBay closed a $9.2bn deal with Gumtree to create the world’s largest classified ads business. Gumtree is one of the largest e-commerce platforms in the UK behind eBay and Shpock’s Adevinta.
In the US, eBay is the go-to marketplace for cheap secondhand furniture and electronics. In 2020, eBay’s gross merchandise value was $90 billion and reported a 19% increase in revenue. eBay’s affordable offerings can entice some customers from Wayfair. [13]
11. Haverty Furniture Companies
Year founded: 1885
Headquarter: Atlanta, Georgia
Havertys is a full-service home furnishings retailer that offers high-quality merchandise in upper-middle price ranges. The company started with a single store in downtown Atlanta and now operates 121 showrooms in 16 states.
It is one of the top furniture retailers in the Southern and Midwestern regions. In 2020, Havertys made $748 million in revenue versus $802 million in 2019. Its net income for the year was $41.7 million.
In the first half of 2021, Havertys saw higher traffic, higher closing rates, and an over 31% increase in sales. But the company is struggling with increased demand for its products. Its backlog has increased nearly four times within a year due to shipping delays.
Havertys has earmarked $23 million for new stores, remodels, and expansions. This investment can increase Havertys’ competitive edge over Wayfair. [14]
12. Etsy
Year founded: 2005
Headquarter: Brooklyn, New York
Etsy is an e-commerce company that offers craft supplies and handmade or vintage jewelry, bags, clothing, home décor, and furniture. Like Wayfair.com, Etsy.com only provides a marketplace for craftsmen, carpenters, and independent retailers to sell their goods. Its two-sided online platform connects millions of creative buyers and sellers globally.
In 2020, Etsy had a Gross Merchandise Sale (GMS) of $10.3 billion and made $1.7 billion in revenues. Etsy offers over 60 million items handcrafted uniquely by millions of craftsmen. The authenticity of Etsy’s products gives it an edge over Wayfair. [15]
13. Lowe’s
Year founded: 1921
Headquarter: Mooresville, North Carolina
Like Home Depot, Lowe’s specializes in home improvement and offers home furniture, interior décor, and appliances. This hardware chain operates more than 2,200 stores and employs over 300,000 associates.
Its home furniture and décor products compete with Wayfair’s offerings. In 2020, Lowe’s made $89.6 billion in revenues, a 34% increase from 2019. Lowe’s has invested heavily in e-commerce since 2018. In 2020, its e-commerce investments delivered a 22% net sales growth and a 23% rise in same-store sales.
Lowe’s will leverage e-commerce to grab market share from rivals in 2021 and control more of the $900 billion US home improvement market. With 100 years of experience and a robust e-commerce strategy, Lowe’s is a worthy top Wayfair competitor. [16]
14. 1stDibs
Year founded: 2001
Headquarter: New York, NY
1stDibs is a leading online marketplace for luxury design products. The platform connects design lovers with sellers and makers of vintage, antique, and contemporary furniture, home décor, art, and jewelry.
On Jun 9, 2021, 1stDibs went public and started trading on NASDAQ under the ticker symbol ‘DIBS.’ It offered 6,612,500 shares to the public at $20.00 per share and netted $117.5 million in proceeds. As a public company, 1stDibs has the resources to challenge Wayfair. [17]
15. Urban Outfitters
Year founded: 1970
Headquarter: Philadelphia, Pennsylvania
Urban Outfitters is a US-based lifestyle retailer that offers trendy furniture, décor, and homewares. Its offerings make it the best Wayfair alternative for urban 20-somethings. The company owns several reputable brands, including Free People, Anthropologie Group, and CB2.
In 2020, Urban Outfitters made $3.45 billion in revenues. Its sales for the first half of 2021 soared 57.6% year-over-year, fueled by a 50% jump in sales for Anthropologie and 77% for Free People.
Anthropologie offers more than 1,700 home furnishings and décor pieces with personality-packed designs. This brand’s products are designed for women, while CB2 and caters to both men and women. Personalized home furniture for each gender gives Urban Outfitters an edge over Wayfair. [18]
References & more information
- Grant BeiruteSimilar Web (2021, June 30). com Ranking. SimilarWeb
- Saibil, J. (2021, Jan 5). 3 Reasons Wayfair Will Keep Growing in 2021. The Motley Fool
- Berthene, A. (2020, Feb 13). com dominates online furniture sales. Digital Ecommerce 360
- Pemper, L. (2021, Mar 15). IKEA versus Wayfair: Who’s got the best sofas at the best prices? Chron
- SRD (2020, Nov 26). Sales of the leading 10 conventional furniture stores in the U.S. from 2018 to 2019. Statista
- McLoughlin, B. (2021, Jan 11). Ashley to roll out largest single investment. Furniture Today
- Tsai, K. (2021, Mar 17). Williams-Sonoma shares rise as stay-at-home trends fuel better-than-expected sales. CNBC
- Kohan, S. E. (2021, Feb 18). Walmart Revenue Hits $559 Billion for Fiscal Year 2020. Forbes
- Wang, J. (2020, Jun 25). Restoration Hardware CEO, Now A Billionaire, Aims To Make His Company A Luxury Giant. Forbes
- The Editors (2021, Apr 28). A Bunch of Furniture and Décor from Studio McGee’s Target Line Is on Sale. The Strategist
- Cheng, A. (2020, Sep 24). Costco Earnings Show It is still in a Retail League of Its Own. Forbes
- Repko, M. (2021, Feb 23). Home Depot tops estimates as sales surge 25%, but shares fall on worries pandemic gains won’t last. CNBC
- Kollewe, J. (2021, Feb 16). Bay’s $9.2bn Gumtree deal raises competition concerns, says CMA. The Guardian
- Engel, C. (2021, May 4). 5 takeaways from Havertys’ blowout Q1. Home News Now
- Marx, S. (2021, Feb 25). Etsy, Inc. Reports Fourth Quarter and Full Year 2020 Financial Results. PR Newswire
- Repko, M. (2020, Dec 9). Lowe’s steps up plans to gain market share reiterate the fiscal 2020 forecast. CNBC
- Miller, J. (2021, Jun 14). com, Inc. Announces Closing of Initial Public Offering. Globe Newswire
- Tenebruso, J. (2021, May 26). Why Urban Outfitters Stock Surged Today. The Motley Fool
- Featured Image by Spacejoy
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