By Esther Fung
Online furniture retailer Wayfair said despite an increase in tariffs, its suppliers are not keen on raising prices.
"The category that we operate in is largely unbranded and substitutable," Niraj Shah, Wayfair's chief executive officer, told investors and analysts Thursday.
The company connects more than 20,000 suppliers with 20 million customers, and "there is intense competition amongst our suppliers to win each order," Shah said.
Weaker furniture sales have hurt Wayfair in the post-pandemic years. The company reported a 1% increase in sales in the U.S. during the quarter.
Furniture sellers are familiar with tariffs. In the early 2000s, some Chinese producers were hit with anti-dumping duties on wood furniture products, which kickstarted a migration of production out of China, Shah said.
Wayfair's largest suppliers have operations spread across multiple countries and can pivot production lines as costs shift. "There's actually a large amount of capacity outside of China," Shah said.
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