The world’s largest e-commerce platform Shopify is investing in the wholesale platform Faire, the two firms announced on Wednesday. As part of the arrangement, the start-up will use Shopify technology for its customers.
Faire, which was established in 2017 and has a $12.59 billion market cap, will be suggested as the wholesale marketplace for Shopify retailers. The value of the transaction and the size of Shopify’s stake were kept a secret by the two parties.
The relationship, according to Aneeqa Khan, director of product at Shopify, would make it simple for Shopify merchants to locate wholesale customers and allow shops to source from Faire’s network of brands.
According to Faire CEO Max Rhodes, “this is a recommendation from one of the leaders in the industry.”
According to Faire, which focuses on independent enterprises, brands who solely sold directly to consumers in the past are converting to a wholesale model in an effort to reduce operating expenses.
In the face of fierce competition on the high street and online, small retailers are also attempting to stand apart. According to Faire, “Not on Amazon” is the most used search criteria on its site as sellers attempt to source less readily accessible goods.
The United States remains Faire’s largest market, but Rhodes noted that since the company began operations in 15 European nations in 2021, Europe has experienced the strongest growth.
This is the most recent in a string of agreements for Shopify, a company that sells tools for building and managing online storefronts.
The business also has a collaboration with Dutch payments company Adyen and invested in American marketing automation company Klaviyo last year, which just made its debut on the New York Stock Exchange this past week.
In the past, Shopify and Cashfree Payments collaborated to develop onsite card payments for Indian retailers. Cashfree Payments is one of India’s top payment and API banking companies. With onsite payments, retailers may provide customers with a smooth and quick checkout experience by directly collecting payment information on their website, doing away with the need to reroute to a different page. This optimised procedure shortens transaction times and prevents as many client abandons as possible, increasing revenue and the payment experience.
The Country Head of Shopify SEA and India, Bharati Balakrishnan, commented, “Digital payments are an integral part of the eCommerce experience, and we are pleased to partner with Cashfree Payments to enhance our payments offering and improve outcomes for our merchants in India.”
