Wayfair to vendors: Hold off on tariff increases

The digitally native retailer sent a letter to vendors outlining suggestions to navigate the importing landscape.

BOSTON — In a letter to vendors, Niraj Shah, CEO and co-founder of digitally native home furnishings retailer Wayfair, urged patience and timing as it relates to any tariff-related price increases.

The letter, sent on April 8 and obtained by sister pub Furniture Today, highlighted Shah’s thoughts on how to navigate the landscape, impacted by the Trump administration’s tariff announcements this month.

On April 9, President Trump announced a 90-day pause and a reciprocal tariff rate reduction to 10% for more than 75 countries, but a 125% immediate tariff rate on China, which means many of the strategies outlined by Shah still likely apply to goods imported from China.

“I know many of you will be affected by these tariffs, but by working in close partnership, we are confident that we can all stay resilient and keep strengthening our businesses,” Shah wrote.

Shah asked vendors who are considering price increases to hold off for now, noting that early movers might see sharp drops in demand that aren’t offset by higher market prices.

“Taking a wait-and-see approach will help you stay aligned with peers and protect your momentum,” he wrote. “Given the inventory that is already on hand at the lower cost basis, this move will not hurt your economics and will position you to maximize your gain.”

Should increases need to be implemented, Shah had two requests. The first was to pass through only what’s essential. “Tariffs apply to the value of goods declared at customs, not your wholesale cost to us. Remember that any price increases will be passed on to customers,” he wrote.

The second request was to time any pricing changes carefully.

“Because Wayfair pricing updates immediately, we recommend increasing prices on other platforms first. This helps ensure customers see a consistent price across retailers,” he wrote. “Our primary focus is not on your specific wholesale cost to us, but rather on our ability to be competitive with other retailers, and your ability to be competitive with other suppliers. Being patient and using the data we will share on what we are seeing will let you react with precision.”

Other points included maintaining strong in-stock levels to sustain sales momentum and leaning into advertising in anticipation of Way Day.

In a statement to Furniture Today, Wayfair said sending a letter such as this to its vendors isn’t out of the ordinary.

“For over 20 years, we’ve partnered closely with our supplier network to deliver the best combination of value and assortment to our customers. As we navigate this period of disruption, we shared suggested actions with our suppliers — just as we have in past market cycles. Our goal is mutual success and continuing to provide customers with the best value in the category,” the statement said.