- What is Faire, and how does Faire work?
- How does Faire make money?
- Commissions on Products Sold
- Faire funding, net worth, and valuation
- Faire profit and revenue
- What is the Faire business and revenue model?
- Faire subsidiaries, acquisitions, and exits
How does Faire make money? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Faire business and revenue model, how much Faire makes per year, and how Faire works.
What is Faire, and how does Faire work?
Faire is a wholesale marketplace platform that connects retailers and brands to buy and sell to each other.
Founded in 2017 by Daniele Perito, Jeffrey Kolovson, Lauren Cooks Levitan, Marcelo Cortes, and Max Rhodes, Faire now has more than 600,000 retailers and 85,000+ brands across 80+ countries on its marketplace platform.
So, how does Faire work? To become a retailer or brand on Faire, you can simply either download their mobile app on Apple Store or Google Play store; or visit their website and sign up for an account.
Both retailers and brands must first apply and get approved before buying or selling products on the site.
How does Faire make money?
According to Faire, Faire now has more than 600,000 retailers and 85,000+ brands on its marketplace platform. So how does Faire make money off of all those retailers and brands?
Below is a breakdown of how much money Faire makes and its revenue model. Including their main revenue stream and how much they charge for their services.
Here is how Faire makes money in 2022
Faire has a revenue model that makes money in just one (1) way; commissions on products sold.
#1. Commissions on Products Sold
Faire makes all of its money from the commissions they collect from the sellers on the platform.
The way it works is – it’s free for both retailers and brands to join Faire. But only brands (sellers) pay commissions on the items they sell, retailers (buyers) pay nothing.
For all first-time orders with a new customer (retailer), brands will incur a 25% commission fee. Then all future reorders with that retailer will drop down to a 15% commission rate.
Faire’s co-founder and chief operating officer Jeff Kolovson told Reuters that “we are on track to do over a billion dollars in GMV (gross merchandise value) this year,” in reference to the 2021 fiscal year.
And according to Faire, Faire has sold more than 125 million products in the last year. Of which, Faire collects a 15% to 25% commission fee on all of it.
How much does Faire charge? (Faire commission rate)
- 25% commission on first-time orders with new retailers, then 15% commission on every recurring order thereafter
Faire funding, net worth, and valuation
According to Faire’s Crunchbase profile, Faire has raised $1.7 billion over 12 rounds and has a valuation of $12.59 billion as of May 2022.
Faire profit and revenue
Faire has not released any official reports in regard to company earnings.
Note: Because Faire Wholesale, Inc is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Faire business and revenue model?
Faire makes money through a few revenue models that they combine within their company, they are:
- Commission based business model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
Faire subsidiaries, acquisitions, and exits
To date, Faire has not made any acquisitions, investments, or exits.