Founded in 2017, Faire has recently attracted an additional $400 million in funding, continuing its remarkable growth trajectory. This influx of capital has propelled Faire’s valuation to approximately $12.4 billion. But what business model has enabled Faire to achieve such growth?
Bridging Manufacturers and Retailers
At its core, Faire serves as a direct connection between manufacturers and retailers. This platform enables retailers to easily find and sell quality products, while manufacturers gain the opportunity to introduce their goods to the right markets. Faire’s approach diverges from traditional online retail platforms like Shopify, introducing a fresh breeze into the market with a different strategy.
Changes Post-Pandemic
The pandemic led to the cancellation of many offline fairs and events, driving numerous manufacturers and retailers to the Faire platform. This shift has been a major driving force behind Faire’s rapid growth in both the U.S. and European markets. To date, about 40,000 manufacturers and 300,000 retailers have conducted transactions through Faire.
Brands Not Sold on Amazon
One of Faire’s largest categories is ‘Brands Not Sold on Amazon.’ This initiative allows retailers to offer unique products that are not easily found online to their customers, providing manufacturers with an avenue to discover new clientele. This approach has significantly contributed to the success and appeal of Faire.
Future Strategies
Faire plans to adopt more aggressive strategies moving forward. Recently, the platform launched a program offering retailers up to $20,000 in Faire credit for inventory purchases. Additionally, Faire aims to become an operational system, providing CRM tools for wholesalers and inventory management systems for retailers.
Conclusion
Although still in its early stages, Faire’s growth presents very attractive opportunities for both manufacturers and retailers. In a market dominated by Amazon, Faire offers differentiated products and a new direction. Looking ahead, Faire is expected to continue leading retail innovation and exert significant influence in the market.
FAIRE OFFER:
- $100 Credit & 1 Year of Free Shipping for retailers who are new to Faire.
- 60-Day Payment Terms for eligible retailers.
- Free Returns on First Orders.
