Retail

Wayfair Results See Surge in Online Shopping

Online home goods and furniture retailer Wayfair has seen its shares go up and down in the wake of earnings reported earlier this week, according to Thursday (Nov. 2) reports from retail news site Retail Dive. Within the numbers, online shopping trends shone.

The company said its net revenues were up 39 percent year-over-year to $1.2 billion, $10 million lower than Wall Street projections.

Growing at an even faster rate — and, of course, helping to boost Wayfair’s top line — was the company’s online customer base, which was up 39 percent to 10.3 million users. In addition, as much as 61 percent of total orders came from repeat business.

“We are very pleased with the company’s strong growth and momentum,” said Niraj Shah, Wayfair’s CEO, co-founder and co-chairman.

Average orders were $250, which was up from the $244 seen in the same time frame last year, according to Retail Dive. In fact, the online home furnishings firm’s net revenue per active customer saw growth over the past 12 months, too — finishing up by approximately 50 basis points at $408.

The company has been looking to improve its supply chain processes, keeping an eye on margins and boosting customer experiences.

In the earnings call, analysts noted Wayfair’s customer acquisition costs have been in the range of $65 to $75 per individual. In response to those costs being characterized as “elevated,” Shah explained Wayfair has seen an increase in repeat customers and their overall spend.

“Every dollar we are spending is getting us a strong customer,” added Michael Fleisher, Wayfair’s chief financial officer.

According to Shah, eCommerce is growing as a channel for furniture purchasing, with particular growth in international locales such as Canada, the U.K. and Germany. Industry researcher IBISWorld figures show as much as 15 percent of the $70 billion in domestic furniture sales are now done online.

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