W - Did Wayfair Just Pull Off the Turnaround of the Year?
2023-08-08 07:45:00 ET
Wayfair (NYSE: W) , the online home decor and furnishing company, demonstrated solid progress in meeting its strategic goals in the second quarter of 2023, causing its stock to jump 14% last week. Is this a real turnaround? Should you buy its stock now?
Wayfair's original plan was to create an all-online furniture company with a huge collection of products to meet any budget. The idea is to operate as a dropshipping platform, which means it provides access to thousands of suppliers without the expense of holding inventory. When a sale goes through, goods are sent by the supplier, and only then does Wayfair pay for the cost of the product.
Products conform to Wayfair branding, so when a customer goes online to shop, there's no hodgepodge of suppliers. It's a smooth, well-run organization with advanced search and visual technology. The company's logistics network, Castlegate, accounts for more than 20% of fulfillment, which gets merchandise to customers quickly and safely. In fact, 97% of products get to customers in as little as two days, according to the company.
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Did Wayfair Just Pull Off the Turnaround of the Year?