Faire vs Distributors:
Does Faire Replace Wholesale Distributors?

Core Functions

• •Inventory Management: Hold inventory in warehouses
• •Sales Representation: Employ sales reps to visit retailers
• •Relationship Management: Build and maintain retailer relationships
• •Logistics: Handle shipping, warehousing, and fulfillment
• •Market Expertise: Provide local market knowledge

How Distributors Make Money

Distributors typically earn through:

• •Margin on products (typically 20-40%)
• •Volume discounts from brands
• •Service fees for logistics and warehousing

Typical Distributor Model

Brands sell to distributors at wholesale prices. Distributors mark up products (20-40%) and sell to retailers. Distributors handle all retailer relationships, sales, and logistics.

Core Functions

• •Digital Marketplace: Online platform connecting brands and retailers
• •Payment Processing: Handles payments and extends 60-day terms
• •Order Management: Streamlined ordering and fulfillment
• •Discovery Tools: Search and filter to find products
• •Direct Shipping: Brands ship directly to retailers

How Faire Makes Money

Faire earns through:

• •15% commission on marketplace orders
• •New customer fees ($10 North America or 10% elsewhere)
• •Payment processing fees (1.9-3.5%)
• •0% commission on Faire Direct orders (brands bring own customers)

Faire's Model

Brands list products on Faire. Retailers discover and order directly from brands. Faire handles payment processing and terms, but brands ship directly to retailers. No inventory holding or sales reps required.

Faire Costs

• •Marketplace Commission: 15% (or 0% for Faire Direct)
• •New Customer Fee: $10 (North America) or 10% (elsewhere) on first orders
• •Payment Processing: 1.9-3.5% + $0.30 per order
• •Upfront Costs: $0 (no trade shows, rep salaries, samples)

Distributor Costs

• •Distributor Margin: 20-40% of wholesale price
• •Trade Show Fees: $5,000-$50,000+ per year
• •Sales Rep Commissions: 10-20% of sales
• •Samples & Marketing: $1,000-$10,000+
• •Upfront Investment: High (shows, reps, materials)

Cost Comparison Summary

Faire: Lower upfront costs, 15% ongoing commission (or 0% Direct), faster ROI
Distributors: Higher upfront costs, 20-40% ongoing margin, slower ROI but potentially deeper relationships

Faire Direct (0% commission) can be significantly cheaper than distributors, especially for brands bringing their own customers.

You Want Rapid Expansion

Faire provides instant access to thousands of retailers globally. No need to find distributors, attend trade shows, or hire sales reps.

You Target Small Retailers

Faire excels at reaching small retailers who may not meet distributor minimums or attend trade shows. Low MOQs make your products accessible.

You Have Limited Upfront Capital

Faire requires no upfront investment in trade shows, sales reps, or samples. You only pay when you make sales.

You Prefer Digital-First Approach

If you're comfortable with online sales and automated systems, Faire's digital platform fits your workflow.

You Want Transparent Pricing

Faire offers transparent, published pricing. No negotiation or relationship-dependent pricing.

You Need Established Relationships

Distributors have existing relationships with retailers in specific markets. They can provide immediate access to established accounts.

You Need Local Market Expertise

Distributors provide deep knowledge of local markets, consumer preferences, and regional logistics. Valuable for international expansion.

You Require High-Touch Service

If your products require personalized service, custom configurations, or complex ordering, distributors provide the hands-on support.

You Need Inventory Management

Distributors hold inventory, reducing your warehousing needs and providing faster fulfillment to retailers in their region.

You Have Complex Logistics

For products requiring specialized handling, local warehousing, or complex distribution, distributors handle logistics expertise.

Hybrid Strategy Benefits

Using both approaches allows you to:

• •Reach small retailers via Faire, large accounts via distributors
• •Use Faire for broad reach, distributors for specific markets
• •Leverage Faire Direct (0% commission) for existing relationships
• •Test new markets via Faire before committing to distributors

Coordination Tips

To avoid conflicts:

• •Set clear territories or account assignments
• •Use Faire Direct for existing distributor relationships (0% commission)
• •Maintain consistent pricing across channels
• •Communicate strategy clearly to both channels

Does Faire replace wholesale distributors?

Faire doesn't necessarily replace distributors, but it provides an alternative channel. Faire is better for: reaching small retailers, rapid geographic expansion, reducing upfront costs, and transparent pricing. Distributors are better for: established relationships, local market expertise, personalized service, and handling complex logistics. Many brands use both: Faire for broad reach and distributors for specific markets or relationships.

Which is better, Faire or traditional distributors?

The best choice depends on your goals. Faire is better if you want: lower upfront costs (no show fees, rep commissions), rapid expansion, access to small retailers, transparent pricing, and digital-first approach. Distributors are better if you need: established local relationships, personalized account management, complex logistics support, regional market expertise, and high-touch service. Many successful brands use both strategies.

How do costs compare between Faire and distributors?

Faire costs: 15% commission (or 0% for Faire Direct), $10 new customer fee (NA) or 10% (international), payment processing fees (1.9-3.5%), no upfront costs. Distributor costs: 20-40% margin/commission, trade show fees ($5K-$50K+), sales rep commissions (10-20%), upfront investment in samples and marketing materials. Faire typically has lower upfront costs but similar ongoing costs. Faire Direct (0% commission) can be significantly cheaper than distributors.

Can brands use both Faire and distributors?

Yes, many brands successfully use both Faire and distributors. Use Faire for: broad market reach, small retailers, rapid expansion, and digital-first customers. Use distributors for: specific geographic markets, established relationships, complex logistics, and high-touch accounts. Coordinate to avoid conflicts: set clear territories, use Faire Direct for existing relationships, and ensure consistent pricing and branding.

Which is faster, Faire or traditional distribution channels?

Faire is typically faster for: getting started (no trade shows or rep hiring), reaching retailers (immediate online access), order processing (automated systems), and geographic expansion (global reach instantly). Distributors can be faster for: established relationships (immediate access to existing network), local market penetration (existing relationships), and complex custom orders (personalized service). Overall, Faire offers faster initial setup and broader reach.

How does Faire compare to sales representatives?

Faire vs sales reps: Faire provides automated discovery and ordering (24/7), lower upfront costs (no rep salaries/commissions), broader reach (thousands of retailers), transparent pricing, and self-service ordering. Sales reps provide personalized relationships, high-touch service, custom negotiations, local market expertise, and proactive account management. Faire is better for scale and efficiency; reps are better for relationship-driven sales. Many brands use Faire for broad reach and reps for key accounts.