Does Amazon Own Wayfair? (What Should You Know)

With over 16,000 employees and 30 million active customers, Wayfair is one of the largest e-commerce giants. With that standing in the industry, the company directly rivals Amazon. In light of this, you may wonder if Amazon has acquired the company, as it has with other competitors. Does Amazon own Wayfair? Read on to find out.

Do you fancy shopping for your furniture online? Wayfair might be one of your favorite go-to stores. The company is one of the largest online home goods and furniture retailers. It was founded in 2002 by Niraj Shah and Steve Conine. CSN Stores was the company's original name until it was changed to "Wayfair" in 2011.

Due to its success in the U.S. market, the company expanded its operations overseas. As of 2022, the company reports sales outperforming competitors such as Ikea and Bed Bath & Beyond. Given that Amazon also deals with furniture and has a reputation for acquiring its competitors, you may wonder if Amazon has acquired Wayfair. We were wondering the same; the following is what we found out.

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Does Amazon Own Wayfair Now?

No, Amazon does not own Wayfair. Wayfair operates as an independent company running its own operations. The company, however, does not manufacture the furniture. It simply purchases the furniture and sells it to customers.

To increase its domination in the industry, Wayfair has made some acquisitions of its own. Some of its notable acquisitions include Buyster, Trumpit, and DwellStudio. The companies are located in different areas globally, therefore diversifying the company's user base.

As you may see, the company is pretty successful. But given its success, you may wonder why Amazon hasn’t acquired the company. If anything, Amazon is not shy of making big acquisitions, as shown by its acquisition of Whole Foods Market.

So, why hasn’t Amazon bought the company? Let’s find out.

Why Hasn’t Amazon Acquired Wayfair?

You may wonder why Amazon, a giant conglomerate, hasn’t acquired Wayfair. The main reason why companies make acquisitions is to reduce competition or make it easy to break into a difficult market.

In the case of Amazon, it already has a strong footing in the furniture retail industry. You can find a variety of sofas, tables, beds, and other furniture when shopping on Amazon. Wayfair, on the other hand, has only gained popularity recently. Furthermore, there isn't much difference between Wayfair's and Amazon's business models. Unlike acquisitions such as Whole Foods Market, there isn't much that Amazon can benefit from by acquiring Wayfair. If anything, Amazon already has a massive international user base to sell all sorts of products to.

Wayfair has also had its own fair share of controversies. In 2019, the company experienced a massive employee walkout. This was caused by the realization that it was profiting from selling beds to detention centers along the U.S. border. In response, about 10% of Wayfair employees walked out of the Boston headquarters.

Surely, no company wants to taint its public image by surrounding itself with controversies. Acquiring Wayfair would mean taking in all the controversies that it comes with. This would, therefore, have some impact on a company's intention to buy the firm.

Amazon Vs. Wayfair

So, which company is better when it comes to shopping for furniture? As with any company, there are pros and cons to either choice. One of Wayfair's pros is that it is fully dedicated to furniture and home goods. You'll therefore find a diverse variety of products compared to other generalized retailers.

The fact that Wayfair is fully dedicated to furniture makes it easy for customers to quickly find what they are looking for. Customers aren’t distracted by items other than items they don't care about. The website is also made in such a way that customers can easily browse through different kinds of furniture. This makes the user experience and convenience one of Wayfair’s major selling points.

One of Wayfair's drawbacks is the high cost of items. If you choose to buy furniture on Wayfair, you’ll have to compromise on the cost. The cost of furniture on Wayfair is generally higher compared to other retailers.

If Wayfair’s prices are too high for you, Amazon may be the better solution. Amazon is known for its competitive prices. This means that you will get a better bargain when shopping on Amazon. Amazon’s inventory is also nothing to scoff at. Amazon sells a wide range of products. You'll also find a Marketplace where third-party vendors sell their items. If you are looking for a particular item, you’ll most probably find it on Amazon. That notwithstanding, Wayfair will still give you a wider variety of home goods products.

So, which is better? It all comes down to variety and cost; if you want more variety, Wayfair is your choice. If you are, however, looking for more affordable furniture, you will have better luck on Amazon.

Should Amazon Buy Wayfair?

Amazon is one of the most recognizable brands in the world. From cloud computing to retail, it has gained dominance in almost every imaginable industry. It has, however, not started from the ground up in every sector. The company has gained footing in most of these industries via acquisition. The company has made over 100 acquisitions and investments, spending over $34.89 billion. The most notable of these acquisitions is Whole Foods Market.

Amazon spent $13.7 billion on the grocery store chain. The acquisition helped Amazon diversify into the food industry sector. It was also a way to encourage people to sign up for Amazon Prime membership.

As you can see, the Whole Foods Market acquisition turned out to be really beneficial to Amazon. Would Wayfair offer the same kind of benefit to Amazon? This would most probably not be the case primarily because Amazon already sells furniture and has a wider user base. Therefore, it is very unlikely that Amazon will be considering acquiring Wayfair soon.

Conclusion

Amazon does not own Wayfair. Wayfair operates as its own boss in the home goods and furniture industry. Amazon and Wayfair have similar business models and are, therefore, direct competitors. With Wayfair, you get more variety. Amazon, on the other hand, gives you friendlier prices. Wayfair doesn't pose a significant threat to Amazon, given the size of Amazon’s existing customer base. It is, therefore, unlikely that Amazon will be acquiring the company any time soon.