Wayfair’s Average Order Value (2016-2021)

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This statistic highlights Wayfair’s average order value from Q1 2016 onwards, reported on a quarterly basis.
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This statistic highlights Wayfair’s average order value from 2016 onwards, reported on a quarterly basis.

Wayfair is an e-commerce platform, selling furniture and home accessories in various regions around the world. This business giant of furniture, lighting, home appliances and décor is one of the world’s leading online retailers in the field of home apparels.

What is Average Order Value?

The average order value for a particular period is calculated by dividing the total net revenue earned in the given period by the orders delivered in that period. It is the average amount of revenue a business earns from all its checkout orders. This metric is a key indicator of a company’s customers’ purchasing habits. By analysing what an average customer spends per order, the company can plan its pricing and marketing strategy. Wayfair’s Average Order Value is discussed below.

Wayfair’s Average Order Value

Period Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Average order value $252 $241 $235 $227 $243 $232 $237 $278 $283
Wayfair’s recorded an average order value of $283 in Q3 2021. In Q3 2019, the average order value was $252. This indicates that the average order value grew by 12.3% over the past two years. However, the growth pattern has been marked by various fluctuations, experiencing periods wherein the average order value fell and periods where it rose.
The average order value marked a growth of 16.46% on a year-on-year basis, increasing from $243 in Q3 2020 to $283 in Q3 2021. On a quarter-on-quarter basis, the growth has been of approximately 1.8%, as this metric increased from $278 in Q2 2021 to $283 in Q3 2021.
From Q3 2019, till Q2 2020, the average order value gradually declined. From $252 in Q3 2019 to $227 in Q2 2020, It fell by 9.9% over 3 quarters. Then it increased by 7.04%, from $227 in Q2 2020 to $243 in Q3 2020. This was followed again by a 4.5% dip in average order value in Q4 2020. From Q1 2021 onwards, the average order value saw a steady increase from $237 in Q1 2021 to $283 in Q3 2021. It grew by 19.4% in these two quarters.

About Wayfair Inc.

Wayfair Inc is an American, fast-growing e-commerce platform dealing in home decor, furniture, housewares and home improvement products. It was founded in 2002 by Niraj Shah and Steve Conine. It has its headquarters in Boston, Massachusetts. Initially, it began as Smart Tech Toys Inc and later changed its name to CSN Stores in 2003. In 2011, the company was incorporated as Wayfair Inc.
The company focuses on providing its customers a fulfilling experience of shopping online for their homes from a wide variety of furniture and home decor. They cater to a wide range of customers across demographics and annual income ranging from $25,000 to $250,000. The company operates in United States, Canada, United Kingdom and Germany, wherein 84% of the revenue is generated from sales in the United States.
Wayfair offers 22 million products through its 5 branded retail websites and mobile applications: Wayfair site, Joss & Main, AllModern, Perigold and Birch Lane. All these 5 websites offer products of different tastes and styles to customers. The company has to compete with physical furniture stores, big box retailers, department stores and online retailers of furniture. The company largely benefitted in 2020, as the demand for online availability of furniture increased multi-fold. Due to the pandemic restrictions, people had to work from their homes, which increased the demand for furniture. Wayfair’s common stock is listed on the NYSE under the symbol “W” and is a component of the Russell 1000.

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