How to Promote at Wayfair
Each Internet Retailer has their own structure for implementing promotions. Today I wanted to spend a few minutes reviewing the ways Wayfair structures their promotions.
There are 6 different levers a supplier can pull with Wayfair to increase their sales through promotional selling.
TPC (Temporary Price Cut)
Sponsored Products
Flash Deals
Daily Promotions
Major Holiday Promotions
WayDay
On average suppliers would like 30% of their yearly sales to come from the promotional side of the business. This 30% also helps to drive traffic “in line” for products that are not on sale.
TPC or Temporary Price Cut is just as its name implies. The supplier decreases prices on all or part of the products in the line. This is usually done to help launch new products or stimulate sales to slower moving inventory.
Sponsored Products are Wayfair’s own version of Amazon’s PPC. Suppliers may select the product or products they would like to boost. The purpose of the Sponsored Products program is to increase the visibility of the selected product. Like Amazon suppliers only pay when the product is clicked on.
Flash Deals are a limited-time on-site “slot” that suppliers bid on to have their products placed in these slots. The products that win the bid are placed in very visible locations on site with Flash Deals markings on site. This lets the customer know they are getting a great price for this product and must act quickly before the deal disappears. All bids for the Flash Deals are submitted through Partner Home. Flash Deals are an excellent way to really boost an already high performing SKU.
Daily Promotions or Daily Sales as they have also been called are targeted to a specific group of customers. The sales are marked through emails, sales flags, and other sales badging on Wayfair. Suppliers need to keep on eye of the Daily Sales approvals in the Partner Promotions Manager. If you do not opt out of the Daily Sales Wayfair will automatically approve the suggested pricing.
President’s Day, Memorial Day, 4th of July, Back to School/College, Labor Day, and Cyber Week are all part of Wayfair’s Major Holiday Promotional Calendar. Participation in these holiday sales is one of the easiest ways to increase sales and rank in the Wayfair algorithm.
Like the Daily Sales suppliers need to decide whether or not to participate in these if not, then Wayfair will automatically approve the suggested price in Partner Home.
WayDay may be the most exciting promotion of all. It is all the other promotions rolled into one. In my experience it is more successful than Black Friday and Cyber Monday combined! Again, suppliers must approve all pricing by the deadlines or Wayfair will automatically approve the recommended pricing. There is one other difference for WayDay. INVENTORY! Due to the high order volume suppliers need to have sufficient inventory on hand to meet demand again, think Black Friday and Cyber Monday!
These are just some of the levers successful Wayfair suppliers use to grow sales and market share on Wayfair. If you have questions about any of these programs CLICK HERE to schedule a call.