Wayfair is famous in the business world as it provides a platform to sellers for selling the products like furniture, home decoration, and other items and facilitates buyers to get cost-effective products.
Why is Wayfair Furniture So Cheap? Wayfair furniture is so cheap because they do not invest in physical stores and interact with customers through an online platform. Moreover, it has no factories to manufacture the product and provides broad options to customers ranging from low to high cost. It offers free shipping and low-cost assembly with frequent discounts making it cheap.
Many people consider that low prices indicate cheap quality, which is true somehow, but there are furniture brands on Wayfair that provide products in a wide range, from high to low cost.
No investment in stores
Purchasing a website for an online business is relatively more cost-effective than a store to provide a physical platform for customers to visit.
A store requires more maintenance costs than an online business, which makes it a costly brand as it tries to cover all the expenses by raising the product prices.
However, online businesses like Wayfair do not require a store and cut off maintenance costs, ultimately benefiting customers.
Moreover, a physical store requires electricity, rent, and other related expenses to operate appliances and needs to be maintained or cleaned.
In contrast, an online business needs minor investment as it has no expenses like paying rent, taxes, and heavy bills.
So, there is no such significant investment in Wayfair stores that leads to a decrease in the product price and makes them available to customers at a low cost.
Absence of manufacturing factories
The construction of manufacturing factories requires a lot of investment as it contains expensive operative equipment to manage the production process.
Moreover, a bulk of raw material is required in the backup to manage the production process when raw items are unavailable.
You have to be ready to pay heavy bills as the equipment runs on electricity, which can be a burden on the pocket, increasing the cost of the product.
Wayfair has no furniture manufacturing factory and provides only a dropshipping service as it offers products from other sellers on its platform. This is the main reason why their furniture is cheap.
Accordingly, it does not need to pay a significant amount for the production process involving cutting, molding, bending, and assembly of materials like plastics, wood, glass, etc.
Furthermore, a manufacturing factory requires a lot of budget to construct and run a system, but Wayfair is free of such expenses as it does not manufacture the product.
Availability of multiple products
Millions of products are available at Wayfair from different furniture brands providing millions of products ranging from low to high cost.
More than thousands of furniture companies are associated with Wayfair providing their products through this platform to raise their business.
In addition, it provides an opportunity for every customer to get their desired products within budget. It is a cost-effective platform because it can facilitate every type of customer.
There are inexpensive brands to provide low-cost items for those having a low budget, but this platform is also shared by the luxurious brands providing expensive products.
Accordingly, you can find millions of options in the kitchen, living room, and bedroom furniture at every price range, making it easy to get the desired product.
No need for a salesperson
The stores need salespersons to display the products to customers at stores and help them make decisions about the right product according to requirements.
Moreover, salespersons are essential for the functioning of stores as they solve customer queries and make them feel comfortable with proper guidance.
Wayfair does not require any salesperson as they have no outlets for customers to visit and process their purchases. Therefore, it reduces the overall cost of hiring and paying salespersons.
It allows customers to search their catalogs on the website and decide after looking at pictures and reading the related information about the product.
Furthermore, their website has different categories for refined search as you do not have to scroll through all products as these categories are considered the shelves in a store.
You can easily click on the required product to get detailed information about it, including the availability of color range, number of items, etc.
So, there are no salespersons at Wayfair, which means it does not pay staff members, which helps reduce overall expenses and product costs.
Flat fee for shipping
The cost of Wayfair products is not more than other brands having physical stores as it provides an opportunity for low-cost shipping.
However, you have to pay high service charges when purchasing directly from furniture stores as they add extra delivery charges to drop a product.
It offers a flat shipping rate of around $4.99 for orders less than $35, which is considered reasonable as it remains the same for every product size.
Furthermore, it provides an opportunity to enjoy free shipping when you have purchased a product that costs more than $35 to $40.
The customers can see the free shipping tag after adding the product to the cart, which means they have to pay for the cost of the product only.
Offer huge discounts
Online brands offer attractive sales and discounts many times a year to attract their customers as it helps build brand identity and attract more people.
In the same way, Wayfair provides an opportunity to get products at low cost by offering huge exclusive discounts as they can afford to provide products at half price than physical stores.
Moreover, Black Friday sales at Wayfair offer around 70% discount to customers so that they can get expensive products at cheap rates.
It provides promotion codes and coupons directly to the targeted audience through emails to sell expensive products at reasonable rates.
However, it can be a temporary reduction in product price, but it provides a chance to grab the products at 50% or 70% off, that help make Wayfair cheap for the buyers.
No inventory for stock
The production of storage houses and inventories can increase the overall cost of the product as it requires a massive investment in rent, space, and warehouse personnel.
In addition, using electricity and storage maintenance can also reduce the profit margin; that’s why the manufacturers increase the product price.
Wayfair is an online furniture store with no outlets and factories, so it does not need any inventory to keep its stock items as it facilitates its customers differently.
It allows direct shipping of the product from the warehouse of the respective brand to the customer’s doorstep without being involved in keeping the stock.
So, it has no inventories that do not affect the product price, and it sells the product at a rate close to the original price by keeping a reasonable profit margin.
A few furniture items need professional assembly as they cannot be installed even after reading the instruction manual. However, the company ensures that its customers can get furniture at a cheap rate.
The cost of manufacturing, shipping, and assembly directly affects the product price, increasing the overall rate and making it expensive for buyers.
Moreover, the furniture stores offer assembly services to charge an amount for their efforts that will automatically increase the cost of the product.
Wayfair offers home services at a low cost, as it charges only $85 to $90 for the bed, dresser, desk, stools, and chair assembly.