According to the two companies, the partnership joins the two in retail and commerce to expand Shopify’s B2B offerings, help drive growth for the brands, and the independent retailers the two companies serve.
As part of the deal, Shopify will also become a Faire shareholder. The firms did not disclose the size of its investment or how much of a stake Shopify is taking in Faire.
The firms did not disclose the size of its investment or how much of a stake Shopify is taking in Faire.
Reports of a Shopify-Faire partnership surfaced in Business Insider back in July, with Shopify taking a five percent stake in the $12.5 billion company.,
Faire claims it is the largest online wholesale marketplace used by independent retailers to discover, source, and sell unique products from around the corner and around the world.
The partnership establishes Shopify Point of Sale (POS) as the preferred provider for Faire’s independent retail community, enabling unified commerce across in-person and online selling. This builds upon an existing inventory, product, and order integration on Faire that has driven an increase in efficiency and volume for Faire customers since 2021.
Thousands of Faire retailers use Shopify today, but the companies are hoping that many more merchants on Shopify will benefit from deeper access to Faire.
The Shopify-Faire announcement follows another in early September when Shopify announced a partnership with Amazon that will allow merchants to more easily integrate into Amazon’s sprawling fulfillment network within their Shopify stores.
As part of the partnership, Faire and Shopify intend to introduce new ways for businesses to grow and manage their B2B offerings across the two platforms. Businesses can expect to see the following features in the coming months.
Merchants on Shopify will be able to reorder best-sellers from nearly 10 million products available on Faire via a fully-integrated Faire buyer app. Additionally, products and inventory from Faire will be synced to their Shopify POS system for in-person selling.
New merchants who join Shopify may also discover Faire during onboarding, helping them source and secure the inventory they need from over 100,000 brands on Faire.
Brands on Shopify will be able to simplify their wholesale distribution to hundreds of thousands of independent retailers in one place via a fully-integrated Faire seller channel, claimed the companies.
“Through our strategic partnership with Faire, we are doubling down on our strategy to enhance B2B commerce by making it easy for Shopify merchants to find new wholesale buyers via Faire’s wholesale marketplace, and enable retailers to source products seamlessly from Faire’s extensive network of brands,” said Aneeqa Khan, director of product at Shopify. “We’re thrilled to join forces to make commerce better for independent businesses.”
Faire was founded in 2017 by a group of Square alumni. TechCrunch described Faire’s model as “an indie Amazon.”
Today, the retail tech startup claims it serves about 500,000 retailers across North America and Europe, which it matches up with more than 70,000 brands from over 100 countries, selling items ranging from home décor to beauty products and apparel.
In May, Faire announced a $416 million USD Series G extension from Y Combinator and Sequoia Capital at approximately the same $12.4 billion valuation.
For Faire, the Shopify partnership comes as the firm contends with a May 2023lawsuit in California from competitor Tundra, which Faire is also suing in a countersuit.
Per The Business of Home, Tundra has alleged that Faire engaged in “anticompetitive conduct, unfair policies,” violating federal antitrust regulations, while in its own countersuit, Faire has claimed that Tundra accessed its computer network illegally. Tundra is now shutting down, and Faire told Business of Home that it has filed a motion to dismiss its lawsuit.
Reporting its second-quarter earnings for 2023 in early August, Shopify made gains for the third quarter running, defying the indifferent markets still rattling investors. Shopify posted a year-over-year increase in total revenues of 31 percent to $1.7 billion. It was the third quarter running the e-commerce retailer was able to report an increase in revenues. Shopify reports all its results in USD.
During the earnings call, Harley Finkelstein, president of Shopify, hinted at things to come: “Our business momentum has led to another quarter of strong financial results. We’re not just shipping products faster, but we are also expanding our global merchant base, all while improving our ability to generate greater free cash flow.
“As we lean into the new shape of Shopify, our focus remains on building the world’s best product to empower entrepreneurs and businesses everywhere,” he said.
Feature image courtesy Burst.