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Shopify invests in wholesale platform Faire
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LONDON (Reuters) – E-commerce giant Shopify is investing in wholesale platform Faire, the companies said on Wednesday, in a global deal that would see the start-up adopt Shopify technology for its clients.
LONDON (Reuters) – E-commerce giant Shopify is investing in wholesale platform Faire, the companies said on Wednesday, in a global deal that would see the start-up adopt Shopify technology for its clients.
Faire, founded in 2017 and valued at $12.59 billion, would become the recommended wholesale marketplace for Shopify merchants. The companies declined to disclose the value of the deal or how big a stake Shopify was taking.
Shopify’s director of product Aneeqa Khan said the partnership would make it easy for Shopify merchants to find wholesale buyers, and enable retailers to source from Faire’s network of brands.
“This is an endorsement from one of the leaders in the industry,” Faire CEO Max Rhodes said.
Faire, which focuses on independent businesses, says brands that previously only sold directly to consumers are switching to a wholesale model as they seek to curb their running costs.
Small retailers, too, are trying to stand out amid intense competition on the high street and online. Faire said the most popular search filter on its platform is “Not on Amazon”, as retailers look to source less widely available products.
Faire’s biggest market is the United States, but Europe is its fastest-growing, Rhodes said, since launching in 15 European countries in 2021.
For Shopify, which sells tools to create and manage online store-fronts, this is the latest in a series of deals.
The company last year invested in U.S. marketing automation company Klaviyo, which made its debut on the New York Stock Exchange last week, and it also has a partnership with Dutch payments firm Adyen.
(Reporting by Helen Reid; eDITING BY aURORA eLLIS)
E-commerce refers to buying and selling goods or services using the internet. It encompasses various online transactions, including retail sales, electronic payments, and online marketplaces.
A wholesale marketplace is a platform where businesses can buy goods in bulk from manufacturers or distributors at lower prices, typically for resale purposes.
A strategic investment is an investment made with the intention of achieving specific business goals, such as expanding market reach, enhancing product offerings, or gaining competitive advantages.
Technology adoption in business refers to the process of integrating new technologies into operations to improve efficiency, productivity, and overall performance.
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