Wayfair’s Revenue per Active Customer (2016-2022)

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This statistic highlights Wayfair’s Revenue per Active Customer, reported on a quarterly basis from 2016 onwards.
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This statistic highlights Wayfair’s Revenue per Active Customer, reported on a quarterly basis from 2016 onwards.

Wayfair is one of the world’s leading online destinations for the category of products related to house furnishing. Through its e-commerce business strategy, it offers consumers visually enthused browsing, captivating merchandising, easy product search, and reasonable prices.

Wayfair’s Revenue per Active Customer

Period Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
LTM net revenue per active customer $449.00 $440.00 $451.00 $453.00 $461.00 $478.00 $484.00

(All figures are in absolute terms)

Active customer refers to a customer of a company if he/she does repeat purchase from that company and is expected to buy at least once in every 12 months duration.

Wayfair’s Revenue per Active Customer has increased from $392 in Q1 2016 to $484 in Q3 2020, marking a rise of 23.46%. Revenue per active customer in Q3 2021 has increased by 7.31% on a year-on-year basis as compared to $451 in Q3 2020

In 2020, it declined by 2% when it decreased from $449 earned per customer in Q1 2020 to $440 per customer in Q2 2020. Since the decline in Q2 2020, it has been on a constant rise. It has increased by 2.5% between Q2 2020 and Q3 2020; it also grew by 1.78% between Q4 2020 and Q1 2021.

In Q2 2021 it saw a rise of 3.68%, when it increased from $461 earned per active customer in Q1 2021 to $478 earned per customer in Q2 2021. It has also grown by 1.2% on a quarter-on-quarter basis from $478 earned per active customer in Q2 2021 to $484 in Q3 2021.

Increasing Revenue per Active Customer depicts that Wayfair Inc is growing constantly. It is attracting more customers which is leading to a steady rise in active customer revenue and is increasing its market base constantly. Since the Covid 19 pandemic struck in 2020, people have started preferring online shopping which has further contributed to the growth of this company. As the entire world got locked down, e-commerce shopping platforms like Wayfair Inc. flourished because the entire world got shifted to online platforms for shopping and have become comfortable with it. It can also be said that people have become so used to it that even when a particular wave of pandemic ends and things start coming back to normal, people still use these e-commerce businesses thus showcasing the incessant growth of these platforms. 

However, the decline between Q1 2020 and Q2 2020 can be explained as the pandemic was in its first wave and many people were losing jobs and facing a financial crisis, this might have led to a decrease in spending thus reducing revenue per active customer.

About Wayfair Inc

Wayfair is one of the most well-known home shopping e-commerce sites in the world. Over 18 million goods are available from over 12,000 vendors. It is aimed towards those aged 35 to 65, particularly women with yearly household incomes of $50,000 to $250,000. It has built one of the most extensive online platform for furniture, housewares, décor, decorative accents, seasonal décor, and other home products divisions. The company’s aim is to keep as little inventory as possible in order to maximise revenue while minimising withholding expenses. It specializes in house categorization, which has allowed it to develop a shopping experience and logistics system that is adapted to the unique qualities of its target market.

Its co-founders are seasoned computer entrepreneurs who have worked together in the commercial Internet space since 1995. As engineers, they’ve created a business culture that’s heavily reliant on technology and the internet. Their significant ownership stake in Wayfair has given them a leg up on the competition and allowed them to take a long view while developing the firm. The United States is now its largest market, and it is expanding its international operations in Canada, the United Kingdom, and Germany through supplier networks, logistical agreements, and brand visibility.

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