The Disadvantages of Faire

disadvantages of faire

Over the last several weeks, I’ve been exploring the potential pros and cons of Faire (formerly Indigo Fair) here on the Lucky Break blog. Today I’m sharing some of the disadvantages as part of an ongoing blog series about emerging wholesale marketplaces. While there’s certainly a lot to love about working with this wholesale platform for artisans, there are notable disadvantages of Faire, too. I shared a few of those disadvantages in a previous blog, and I’m back with a additional thoughts to help you determine if Faire is the right opportunity for your brand.

 

The Disadvantages of Faire

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I’m pleased to share that Max Rhodes, Faire’s CEO, graciously provided answers to a tidy list of queries I sent his way. In the final two blogs of this series, I’ll share his responses, my final thoughts, and the results of the Lucky Break community survey.

 

FAIRE FAVORS BUYERS ABOVE BRANDS

There’s a general feeling among many makers and product designers that retailers are getting the better deal when it comes to Faire. They enjoy generous ordering incentives, including free shipping, free returns on first orders from any brand, and $200 cash to spend when signing up through a brand’s Faire link.

 

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However, artisans often believe that they’re getting the shorter end of the stick. We’re enjoying an increase in exposure, but we’re also paying a princely sum (up to 28% of the order) for the privilege of being seen. Thankfully, we’re not saddled with the burden of product returns, though passing the baton to Faire on that front creates separate issues that are worth exploring.

 

SLUGGISH CUSTOMER SERVICE

I frequently hear criticism about slow responses from the Faire team, especially as it pertains to reviewing applications for new makers. Despite those rumbles of frustration, artisan satisfaction with Faire’s customer support team appears to increase exponentially once we gain acceptance onto the platform.

 

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The Inevitable Downside of Faire

downside of Faire

As part of my ongoing blog series about emerging wholesale marketplaces, I’ve been exploring the potential of Faire (formerly Indigo Fair). While there’s certainly a lot to love about working with this wholesale platform for artisans, we don’t often hear much about the disadvantages. I’ve spent weeks studying this wholesale platform and speaking to retailers and brand owners who have a stake in the marketplace. I’m eager to share what I’ve learned about the disadvantages of Faire so that you can make an informed decision for your business.

 

The Inevitable Downside of Faire

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Faire executives have agreed to address my concerns, and I look forward to sharing their response in an upcoming blog.

 

FAIRE CHARGES A HEFTY COMMISSION, ESPECIALLY ON FIRST ORDERS

A significant downside of Faire wholesale is their fee structure, which has evolved over time. The rate for new makers onboarding in early 2019 is 25% on the first order from any buyer.  It then becomes 15% on subsequent orders from the same buyer. Faire frequently extends net 60 terms to shopkeepers, and makers can elect to pay an additional 3% fee for immediate payment. You can also choose to wait thirty days for payment and skip the 3% fee.

 

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That translates to a substantial commission of up to 28% on Faire orders. As a consultant who’s had the privilege of coaching hundreds of brands through the mechanics of product pricing, those margins make me cringe. Let’s explore how that breaks down for a product that retails for $30.

 

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What makers, designers and retail buyers love about Faire

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As part of my ongoing blog series about emerging wholesale marketplaces, I’m highlighting the benefits of Faire (formerly Indigo Fair). And there’s certainly a lot to love about working with this wholesale platform for artisans, from the perspectives of both a maker and a retailer. Faire has ambitiously harnessed technology to create advantages for all stakeholders in the world of wholesale, and I’m excited to dive in and share them with you.

 

WHAT ARTISANS LOVE ABOUT FAIRE

 

Product designers who set up shop on Faire praise the passive nature of the platform and the increased visibility among buyers. The application process is simple, the Faire team takes care of the onboarding logistics, and makers often enjoy an order within the first week. Because Faire charges no upfront fees, the marketplace involves little risk on behalf of the artisan. That’s a welcome relief to brand owners who’ve traditionally gambled thousands of dollars brands to exhibit at a single trade show.

 

Creative entrepreneurs often spend a sizable amount of time reaching out to stores off interest, never sure whether a specific buyer will appreciate their work or have the budget necessary to bring on new lines. Faire buyers shop at their convenience, which eliminates the guesswork for brands. If a boutique owner is on the Faire site, then they’re on the prowl for new products. Even when they aren’t present, brand owners are investing their energy into the 783 other facets of running a company that demand their daily attention.

 

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Faire has gathered eyeballs and buying power at record speed. As of early February 2019, the platform had vetted 19,271 retailers according to a post within their official Facebook community. That potential for exposure often translates to a respectable volume of orders, which helps to offset the higher-than-average commission structure. Brands currently pay as much as 28% of an opening order in fees on Faire.

 

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