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Wayfair Supplier Margin Calculator

Work backwards from retail to your wholesale price.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Marketplace fee models change often, and several platforms in this set have altered theirs outright in recent years. These defaults are a starting point — your own seller terms are the authority.

Your wholesale price

$160.65

32.8% margin on it

Retail on the site$249.00
Your wholesale price$160.65
Cost, freight & damage allowance$108.00
Profit per month$6,317

Wayfair buys at wholesale and sets retail itself, so you never see a commission line — the margin is in the gap. Damage and returns on furniture are high and largely fall on the supplier, which is why the 8% allowance matters more here than on almost any other channel.

How the Wayfair Supplier Margin Calculator works

Wayfair buys at wholesale and sets retail itself, so there is no commission line — the margin is the gap. Suppliers work backwards from the retail price they want to see, and damage rates on furniture fall largely on them rather than on Wayfair.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

How does Wayfair pay suppliers?

It buys at an agreed wholesale price and sets its own retail. There is no percentage commission, so your revenue is fixed and Wayfair's margin varies with what it decides to charge.

What markup does Wayfair apply?

Commonly around 50% to 60% over the wholesale price, though it varies by category and competition. Working backwards from the retail price you want gives the wholesale price you need to quote.

Who pays for damage and returns?

Largely the supplier, under most agreements. Furniture damage rates are high and freight-damaged goods are frequently unrecoverable, which makes the allowance one of the most important lines in the model.

Is CastleGate worth using?

Wayfair's fulfilment network improves delivery speed and search placement, at the cost of storage fees and holding stock in their network. The trade is the same as FBA — visibility against carrying cost.

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