Dive Brief:
- Wayfair’s efforts to provide customers a better online shopping experience and increase loyalty through its rewards program are already paying off, executives said on a Q2 2025 earnings call Monday.
- The retailer has seen positive customer reception to Wayfair Verified, which offers customers a curated selection of products with the highest quality and value across styles and price points. Customers are more likely to purchase Wayfair Verified products and report more satisfaction.
- Wayfair Rewards has also seen steady member growth. The retailer launched the paid loyalty program last holiday season.
Dive Insight:
Wayfair is investing in customer experience to differentiate itself in the home goods and furniture market — and executives say it’s already winning over customers.
“You have hundreds of billions of dollars of spend in this category, and it is very fragmented,” CEO Niraj Shah said on the earnings call. “I think that's where we can pull demand away from places that someone may have gone by providing that customer with a better experience. And that's across the recipe. That's across what we can do with technology, and that's across what we can do in new programs.”
Total net revenue rose 5% year over year to $3.3 billion, according to its Monday earnings report. While active customers declined 4.5% year over year to 21 million, net revenue per active customer in the last twelve months grew 5.9% year over year.
Wayfair Verified is one way the retailer is hoping to drive conversions and repeat visits. The program aims to make shopping easier by providing customers a shortcut to high-quality items. Launched in March, the retailer aims to increase the items in Wayfair Verified and to make the program more prominent in the overall Wayfair shopping experience.
“The verified checkmark provides a guidepost for shoppers as they navigate our endless aisle, and the response from customers has been very positive,” Shah said. “These items are driving outsized performance, converting over 25% better, achieving approximately 20% higher net promoter scores and generating higher repeat purchase behavior compared to non-verified items.”
Wayfair is also planning on expanding its brick-and-mortar footprint to replicate the success it had with its Chicago store. Store openings are scheduled for West Palm Beach, Florida, this fall, Atlanta and Denver in 2026, and New York in 2027.
Wayfair is also seeing momentum in direct traffic through its loyalty program and app, CFO and Chief Administration Officer Kate Gulliver said. Wayfair Rewards not only generates incremental share of wallet and order momentum “but naturally leads to more direct traffic as customers return to Wayfair to spend the rewards dollars on their next find for their home,” Gulliver said.
Customers installed the Wayfair app at the highest level since Q4 2020, according to Gulliver. Approximately 30% of U.S. revenue comes from the app, an all-time high.
