Business:Management & Marketing
EP 87: The story of Wayfair and what you can learn from their mistakes
It’s amazing what happened with Wayfair.com. They started off in the early 2000’s by building one niche online store selling bar stools and ended up in the mid-2000’s with 200+ niche online stores and over $100 million in annual revenue, that’s $500k in revenue per site on average. In the late 2000’s they started CSNStores.com to bring them all into one, and a few years later they re-branded to Wayfair.com and shut down all their niche online stores. Since then they’ve been struggling to stay profitable due to high corporate overhead costs and R&D costs. Even with the insane growth of 50% in Q4 2017 to more than $4 BILLION in sales, they still LOST almost a quarter million dollars in the same time period.
In this video and podcast, I go over all the reasons I believe why they are not profitable right now and what they can do to solve their problems. I go over other business models like information products, software, services, marketplaces, subscription and membership programs that businesses like Amazon.com have used to maintain profitability even through insane amounts of growth. I didn’t even mention real estate investing in this episode which is another method of creating assets and income within a business. The bottom line is you need to determine for yourself what you are willing to learn and take action on so you can re-invest your earnings smartly to grow in the right direction without wasting your money and time.
In my Academy, I teach how to start a niche high-ticket drop shipping online store like the guys at Wayfair.com did in the early 2000’s over 200 times. I also teach how to incorporate other business models into your main business either within your store or separately to help you maintain growth quarter over quarter but without struggling.
Apply to the academy here: https://academy.ecommerceparadise.com
It is Free