Wayfair Exits Germany: What It Really Means for the Furniture Industry—and What Comes Next
- Sunbin Qi
- Mar 27
- 5 min read
Not long ago, I read a piece of news that truly made me pause.
Wayfair, one of the largest online furniture retailers in the world, announced that it is immediately shutting down its operations in Germany. This decision will cost them between $102 million and $111 million and result in 730 employees being laid off. Just like that—gone.
In over 20 years of working with furniture wholesalers, e-commerce players, and retail chains across Europe—particularly Germany, the Netherlands, and the UK—I’ve rarely seen a move like this happen so suddenly. Wayfair didn’t just scale back; it completely exited one of Europe’s largest and most design-conscious markets.
For many in the furniture supply chain—buyers, product managers, sourcing agents—this is more than just industry news. It's a turning point. It affects how and where we sell, how we source, and who we choose to partner with.
Let me explain what I think is really going on here—and why now, more than ever, having a stable, reliable furniture supply partner is your biggest advantage.
Why Did Wayfair Pull Out of Germany?
Wayfair cited a shift in focus to “higher-growth markets” like the UK and Canada. That sounds diplomatic. But beneath the surface, here’s what I believe went wrong:
Logistics Complexity:Germany is a complex logistical market—extensive return policies, high expectations for delivery speed, and localized service. Wayfair’s fulfillment infrastructure in Europe struggled to keep up with those expectations.
Thin Margins in a Mature Market:Germany is a mature furniture market with razor-thin margins. Consumers are savvy, and price competition is fierce. Wayfair's marketplace model wasn’t always profitable at scale here.
Limited Localization:Product listings weren’t always aligned with German tastes and lifestyle. When you operate at global scale, it's easy to overlook small but significant local nuances—fabrics, sizing, comfort levels, style language.
Customer Experience and Returns:In furniture, customer satisfaction is closely tied to product quality and how it looks and feels in real life. With high return rates and complaints about assembly and delivery, Wayfair lost trust with some buyers.
So, instead of patching the boat, they jumped ship.
A Massive Shockwave for Furniture Buyers and Sellers
Let’s be real: this isn't just a story about Wayfair. It’s about a gap opening up in the European furniture market.
Thousands of furniture sellers who relied on Wayfair’s platform—especially dropshippers, wholesalers, and online-first resellers—are now forced to ask hard questions:
Where do we redirect our sales?
How do we fill the product pipeline?
Who can we trust to deliver consistent supply, even in a changing market?
As someone who has worked on both ends—helping factories produce and helping buyers sell—I’ve seen this scenario play out before. The exit of a big player always reveals one truth: brands that own their supply chain and deeply understand their customers survive. The rest scramble.
What Makes a Supplier Truly Reliable?
At ASKT Furniture, we’ve always believed that the foundation of a strong B2B relationship isn’t volume—it’s trust. We don’t just supply dining chairs. We supply confidence.
Here’s how we’ve structured ASKT to avoid the very problems that contributed to Wayfair’s exit:
Real, Measurable Quality Standards
We’ve invested over $20,000 in 12 types of professional testing equipment. Our testing includes:
Static load tests on armrests and chair legs
Impact and drop tests on seats and backs
Durability testing across joints and rotations
Every chair that leaves our factory is not just visually inspected—it’s physically challenged.
But we didn’t stop there. We have 11 dedicated quality inspectors, each equipped with video recorders, to document the inspection process in real-time. This isn’t just for internal auditing. It’s for transparency—for you, the buyer.
When you sell a chair online, you’re not there to touch it. But we are. And we make sure you can see exactly what your customer will receive.
Localized Design Thinking for Europe
Our product development is not one-size-fits-all. We’ve set up 4 R&D centers across Bazhou, Anji, Huizhou, and Zhangzhou, with a sample production room and a showroom that simulates real-life German living environments.
Why?
Because a chair that looks great in a Shanghai showroom might not feel right in a Berlin flat.
In our showroom, we’ve recreated six different room layouts based on real German households. We analyze spacing, height preferences, fabric textures, and even lifestyle habits. From chair back inclination to armrest width, we tailor each product line based on user behavior—not just aesthetics.
And we’re fast. We can turn around custom samples in under 10 days.
Sustainable Packaging—Less Plastic, More Smart Design
I’ve walked the packaging floor more times than I can count. And every time, I ask my team the same question:
“Can we make this safer, smaller, and more eco-friendly—at the same time?”
We now use honeycomb paper protection instead of excessive foam and plastic. It not only reduces our environmental footprint, but it also helps reduce damage during transit, which cuts returns (and costs) for our buyers.
In an e-commerce age where 1 in 10 products gets returned due to damage, this matters.
A People-First Approach to Manufacturing
Maybe this is the part that’s hardest to quantify—but most important.
At ASKT, our team is stable, long-term, and deeply experienced. Our pattern cutter has been crafting chair upholstery for over 20 years. That’s two decades of understanding how foam density, stitching direction, and frame tension all work together.
Our management is involved daily in production—not just monthly reports. That hands-on attention trickles down to every product.
Because I’ve always believed: no ERP system can replace a good pair of eyes on the floor.
What’s Next for European Furniture Buyers?
Wayfair's exit from Germany is a symptom of a larger shift. The industry is evolving—fast.
Here’s what I believe successful buyers will need to focus on moving forward:
✅ Diversified Channels
If all your eggs are in one basket—be it Wayfair, Amazon, or OTTO—you’re vulnerable. It's time to develop:
Your own e-commerce brand
Partnerships with localized platforms
Showroom or pop-up strategies
Omnichannel fulfillment
✅ Direct Manufacturer Relationships
The days of faceless sourcing are over. You need partners who:
Respond fast
Know your customer
Offer traceability and QC transparency
Can prototype and pivot on demand
✅ Inventory Flexibility
Rather than betting on large containers and big commitments, look for suppliers (like us) who can support:
Small batch manufacturing
Dropshipping for pilot runs
Scalable repeat orders based on sales data
✅ Reliable Product Data and Samples
We provide every partner with:
Clear dimensions, CAD files, and assembly guides
Real photography in European home scenes
Video inspection reports
1:1 sample matching
In a world where trust is digital, details win deals.
Final Thoughts—A Wake-Up Call, Not a Warning
I don’t see Wayfair’s exit as a reason to panic. I see it as a signal.
The European market isn’t shrinking. But the ways in which people buy and sell furniture are maturing. If you’re a product manager or buyer who can adapt—who can find the right partners and build long-term resilience—you’ll come out ahead.
At ASKT, we’re not trying to be the biggest factory. We’re trying to be your most dependable partner. The one who knows what “butterfly backrest design” really means to a German customer. The one who tests your chairs like a dad of three. The one who doesn’t disappear when the container leaves the port.
If that’s the kind of relationship you’re looking for—let’s talk.
📞 Let’s ConnectI’m Sunbin Qi, CEO of ASKT Furniture. I’ve worked with more than 20 factories across China, building a reliable, German-market-ready product line that’s been sold in OTTO, Amazon, and independent retail stores for years. My team is ready to help you rethink your sourcing strategy—practically and profitably.
📱 WhatsApp: +86 18912605997
Let’s build smarter. Let’s build stronger. Let’s build together. 🪑
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