Wayfair: Moving Past the PSD (Preferred Supplier Discount)

Through the years Wayfair has used several different ways to incentivize Suppliers to participate in their daily sales events.  The most recent of these is the PSD or Preferred Supplier Discount.  

The PSD program would give the Suppliers who participate in the program preferred placement and inclusion in events.  The standard PSD agreement was an automatic 10% discount for the products that were selected for an event.

In return the Supplier had to agree to not release any of the same new products to Amazon for a period of twelve months.   

Wayfair has found that the smaller events do not drive as much business as simply having the best everyday price available to customers.  

They couple this everyday pricing strategy by being more aggressive for major events and holiday promotions.  

These are specifically in the accelerant hub, where companies have to approve, decline or submit alternate pricing.  If a Supplier does not do this, then Wayfair will move forward with the price that they suggested.

In order to take advantage of this latest strategy we are recommending that our clients end the PSD agreement and decrease their everyday price by 5%.  In the end the Supplier will be able to be more aggressive with major holiday promotions.

If you have any questions about Wayfair’s PSD program or pricing for internet retailers.  CLICK HERE to schedule a call with us.  We will be happy to answer any of your questions.