Investors are closely focused on studying pricing dynamics and cross-shopper perceptions between Wayfair and Amazon for identical items.
Why This Matters:
Simply put: If cross-shoppers notice cheaper prices on Amazon, they’d be more likely over-time to gravitate toward buying these items from Amazon.
What we are finding: (Charts Below)
- Reality: Wayfair is more expensive on identical products (nearly 80% of the time).
- Perception: 61.7% of cross-shoppers say Amazon was less expensive. IE – the collective came to the accurate conclusion, but for nearly 40% of cross-shoppers there is still a disconnect between perception and reality.
- What is Wayfair’s Pricing Trick? More Discounts and Steeper Discount Percentages... Across the 126 identical items we found Wayfair had a discount noted 73% of the time, compared to Amazon at only 39.7% of the time. Wayfair’s discounts, when applied, were steeper, too (22.4%, on average, compared to Amazon at 12.1%).
Start a Trial To Gain Incremental and Crucial Insight:
- What percentage of Wayfair shoppers are cross-shopping Amazon?
- Is cross-shopping increasing or decreasing?
- What percentage of the time do cross-shoppers say they find identical items?
- Is there anything else about the Wayfair experience that increases loyalty? IE – product visualization, search with image, etc.