The world’s largest e-commerce platform Shopify is making an investment in the wholesale platform Faire, the 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 deal was not disclosed by the companies.
The relationship, according to Aneeqa Khan, director of products at Shopify, would make it simple for Shopify merchants to locate wholesale customers and allow shops 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.
According to Faire, which focuses on independent enterprises, brands that solely sold directly to consumers in the past are converting to a wholesale model in an effort to reduce operating expenses.
The United States remains Faire’s largest market, but Rhodes noted that since the company began operations in 15 European countries in 2021, Europe has experienced the strongest growth.
This is the most recent in a string of partnerships for Shopify, a company that sells tools for building and managing online storefronts.
