The world’s largest e-commerce platform, Shopify (SHOP.TO), is investing in the wholesale platform Faire, the two firms said on Wednesday. As part of the arrangement, the startup will use Shopify technology for its customers.
Faire, established in 2017 and has a $12.59 billion market cap, will be suggested as the wholesale marketplace for Shopify retailers. The amount of the transaction and the size of Shopify’s shareholding were kept a secret by the two parties.
According to Aneeqa Khan, director of products at Shopify, the relationship 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 that solely sold directly to consumers in the past are converting to a wholesale model to reduce operating expenses.
In the face of fierce competition on the high street and online, small shops also attempt to distinguish themselves. According to Faire, “Not on Amazon” is the most used search criteria on its site as sellers attempt to locate less readily accessible goods.
The United States remains Faire’s largest market, but Rhodes noted that Europe has had the strongest growth since the company began operations in 15 European nations in 2021.
This is the most recent in a string of agreements for Shopify, a company that offers tools for building and managing online storefronts.
The business also collaborates with Dutch payments giant Adyen (ADYEN.AS), which debuted on the New York Stock Exchange last week and invested in American marketing automation startup Klaviyo last year.
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