Wayfair adjusts its delivery method, small packages will be delivered to third-party carriers

According to Retail Dive, Wayfair is adjusting its logistics and transportation policies, using data analysis tools to classify packages by size and assign them to different carriers. In addition, Wayfair will also adjust the ranking of search results to give priority to displaying sellers' products with lower damage rates.

Wayfair reportedly announced the relevant adjustments at its earnings conference on May 4. Specifically, Wayfair will classify the items it sells into small packages and large packages. Small packages will be delivered by third-party carriers such as FedEx, with an average weight of 30 pounds. Larger packages with higher values ​​will be delivered by Wayfair's own freight trucks.

Wayfair divides the items it sells into small and large packages. Small packages are shipped through carriers such as FedEx and weigh an average of 30 pounds. Larger, more expensive packages are delivered through Wayfair's own network by trucks operated by a two-person team.

The new delivery method will help Wayfair save on last-mile delivery costs, and packages that cross between small and large packages will also be able to find the most efficient and lowest-cost delivery method.

The move is part of a $500 million cost-cutting plan by Wayfair amid declines in net revenue, active customers and order deliveries. Wayfair announced in January that it expects these cost savings to be realized by the end of 2023.

“These are durable, process-driven cost reductions that we expect to create economic benefits and efficiency improvements on every order and that we believe will result in higher savings when volume growth returns,” Wayfair CEO Shah said.

Wayfair CEO Shah said that higher logistics costs can also be achieved by reducing damage rates. Currently, Wayfair is working with platform suppliers to identify the weak points of products and improve packaging to more effectively prevent damage.

In addition, Wayfair also used damage rate data to adjust the ranking of search results, giving priority to displaying products with lower damage rates, which helped Wayfair reduce its overall damage rate in logistics and transportation by more than 15%.

Through the above measures, Wayfair will further reduce logistics and transportation costs, provide customers with more attractive prices, and create a better customer experience, allowing customers to buy goods with a lower damage rate. The virtuous cycle generated by these measures will also be transmitted to the platform sellers.

Editor✎ Ashley/

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