Maria Jose Guerrero
Faire is the world's first online wholesale marketplace, enabling independent retailers and brands to buy and sell online at wholesale rates. With more than 500,000 independent retailers and 70,000 brands from 150 different countries, making it the largest platform of its kind. Although eCommerce growth has been slower in the B2B market, it is currently rising. It is expected to continue growing in the next few years. For these companies, a marketplace like Faire helps to optimize sales volume with competitive pricing and seek new business opportunities. We explain how this online wholesale marketplace works.
First steps on Faire for retailers and brands
Registration on Faire is completely free for retailers and brands. Registering on the marketplace only takes a few minutes, giving access to other companies interested in buying online at wholesale prices. Selling brands will only pay commissions when they find a new retailer through the platform. After registration, the brand will go live. Retailers can then consult the product catalogue and place orders based on their needs.
Faire is currently available in the United States, Canada and much of Europe, so it may be a great opportunity to kick start international trade between manufacturers and retailers. The marketplace is working on increasing its operational reach to new destinations worldwide.
Advantages of buying and selling online through Faire
For independent retailers
- Free returns on initial orders so you can check the products’ quality and ensure they meet your needs and expectations.
- 60-day payment terms so that retailers can sell the merchandise they buy to their audience and pay brands afterwards. This means there is no need to pay in advance.
For brand manufacturers and retailers
- There is no commission to pay for existing customers found outside the marketplace. In other words, you can offer potential customers all the advantages of buying via Faire. As long as they are not registered retailers and you did not find them through the marketplace, there will be no commission to pay on the sale.
- The 15% to 25% commission fees allow the marketplace to offer retail verification services, returns logistics, payment default insurance, and marketing and advertising campaigns.
B2B pricing strategy to sell on Faire
After activating your Faire account and selecting which products to sell, next comes the trickiest part for brands: Pricing. Wholesale prices should be based on direct manufacturing costs, perceived value, strategic objectives, and competitors’ prices. This last factor can determine whether or not your pricing strategy is successful. Therefore, it is vital to know competitors’ prices and how they change to adapt to the market. Use an automated competitor monitoring tool with the ability to track each company’s different sales channels.
Personalized pricing is an increasingly important factor in the B2B market as well. Use tiered pricing as a strategic approach. These prices vary according to the volume of items the customer wants or you can use bundle pricing. You can create promotional codes within the marketplace for selected customers and launch specific promotions to attract retailers’ attention, including free shipping for certain customers.
These strategies align with the increasingly prevalent trend in B2B eCommerce to use tools to generate personalized quotes. Ultimately, this technology aims to increase customer satisfaction and boost sales.
Find out how Minderest can take your business to the next level.
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