Faire Exclusivity Tool: How It Works and Why It’s a Game-Changer
At the end of last year, Faire marketplace introduced its Exclusivity Tool. This allows brands to offer retailers exclusive rights to sell their products within a specific postcode provided they meet a set annual spending target.
In this post, we’ll break down how the program works, share our experience, and address some common concerns about it.
How the Faire Exclusivity Program Works
Setting up the Faire Exclusivity Tool is simple. Through your Faire portal, you can:
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Set an annual spend requirement that a retailer must meet to gain exclusive rights to sell your products in their postcode.
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Commit to honouring this exclusivity both on and off Faire wholesale marketplace.
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Define the exclusivity area which typically covers a 2KM radius around the retailer’s postcode.
When deciding whether to offer exclusivity, consider where the retailer is located. Are they in a small town where exclusivity makes sense, or in a large city with multiple potential stockists? Be sure to evaluate each case individually.
Interestingly, even before this tool was introduced, we noticed that many retailers naturally avoid stocking the same products as their nearby competitors. They want their store to have a unique product selection. Therefore, formalising exclusivity through Faire often just reinforces a behaviour that already exists.
Why We Love the Faire Exclusivity Tool
We’ve found that setting an exclusivity agreement has strengthened our relationships with retailers. Here’s why:
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Retailers commit to a higher spend, and in every case so far they have exceeded the required amount.
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The agreement ensures they’re motivated to successfully sell our products since they’re financially committed.
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It provides security for both parties, building long-term partnerships.
Once you activate exclusivity for a retailer, the Faire platform will display a banner on your product and shop pages to show that you offer exclusivity. Retailers will also see prompts throughout their Faire account encouraging them to join your exclusivity program.
Given that Faire is pushing this feature, we suspect the Faire algorithm may favour brands using it. This is yet another reason to give it a try!
Common Questions About the Faire Exclusivity Tool
1. Does it mean I’m turning down sales?
Not necessarily. In some areas, you might never get multiple retailers ordering from you anyway. Therefore, exclusivity helps lock in guaranteed revenue. Even if you do lose a few potential sales in a given postcode, we’ve found that exclusivity leads to larger orders and greater profitability, outweighing any small missed opportunities.
2. Will it reduce my visibility on Faire?
Short answer, no! Your products will still be visible to retailers in exclusive areas, but they won’t be able to check out. Instead, they’ll see a message explaining the exclusivity. In fact, this could make your products more desirable, as retailers may want to be part of an exclusive club.
3. Is this only for large businesses?
Absolutely not! Any brand on Faire can use this tool. The key is setting an annual spend target that makes sense for your wholesale business. If your threshold is too high, smaller retailers may not be able to participate, but you have full control over setting a reasonable amount.
Final Thoughts: Is Faire Exclusivity Right for You?
The Faire exclusivity tool has been a great relationship-builder for us. When a retailer values our products and is willing to commit to our annual spend requirement, it’s a win-win situation.
That said, we always evaluate requests on a case-by-case basis, especially if we already have retailers in the area. We don’t want to lose existing loyal customers, but we also want to make strategic decisions that are best for our business.
If you have any questions about Faire wholesale marketplace and its Exclusivity Program, drop us an email at hello@candidfounders.com. We’ll be happy to answer them. At Candid Founders Agency, we manage multiple six-figure brands on Faire marketplace, including our very own sock brand, Bare Kind.
We aim to help you grow your business on Faire by dropping weekly tips to keep you ahead of the game. If you found this post helpful, stay tuned for more tips on growing your business on Faire. Thank you for reading and we’ll see you in the next post!