TLDR
Selling through Faire costs 15-19% of every order in commissions and fees. A direct wholesale portal costs $20-$99/month flat plus standard payment processing (~3%). At $200K annual wholesale GMV, Faire takes $30,000-$38,000/year. A direct portal costs under $2,000/year all-in.
| Feature | Faire | Direct Wholesale Portal | OrderDock |
|---|---|---|---|
| Monthly cost | 15% commission (new buyers) + 1.9-3.5% processing | $20-$99/mo flat + ~3% payment processing | $20–$99/mo. Zero commissions. |
| Built for | Retail + B2B bolt-on | Varies | B2B wholesale only |
| Native B2B features | Limited | Limited | Full (net terms, matrix ordering, buyer pricing) |
Source: Sarah Shaw wholesale margin analysis, 2025
Source: Faire pricing page + payment processing disclosure, 2026
Source: Sarah Shaw, wholesale consultant, 2025
The Margin Math on Faire
The headline numbers are straightforward. A brand selling $200,000 annually through Faire at 15-19% effective commission pays $30,000-$38,000 in fees. A direct portal running on OrderDock at $99/month plus 3% processing costs roughly $7,200/year at the same volume — a difference of $23,000-$31,000 retained annually.
The per-order version is more concrete. Take a $500 wholesale order. Direct portal: $500 revenue, ~3% processing ($15), net to brand $485. Faire first order: $500 revenue, 15% commission ($75) + $10 new-retailer fee + 3% processing ($15) = $100 in fees, net to brand $400. The margin difference on that single order is $85, and it repeats on every subsequent order from that account.
The gross margin version is what matters most. If your product costs 43 cents on the dollar to make and fulfill (43% COGS), your direct wholesale gross margin is approximately 57%. On a first Faire order, Faire’s take brings your effective gross margin to roughly 22%. That’s the margin a brand would earn on a deeply discounted liquidation sale, not a standard wholesale relationship.
The Pricing Parity Trap
Faire requires price parity — your prices on Faire must match your lowest wholesale prices anywhere. This creates a structural problem.
If you raise Faire prices to cover the commission, you raise your prices everywhere. Your direct accounts and trade show buyers see the same increase. Most brands can’t do this without losing price-sensitive accounts. So instead, they absorb the commission out of margin.
The result is a permanent margin tax on Faire-originated accounts. Every reorder from a Faire retailer costs 15% more than the same reorder from a direct account — not because Faire provides ongoing value on reorders, but because the pricing structure is locked in.
The Data Ownership Problem
Faire collects and owns the retailer data on its platform. When a retailer orders through Faire, you see the order. Faire sees the retailer’s full purchasing behavior across every brand they buy from — their order frequency, average order value, category preferences, reorder patterns.
This asymmetry matters for two reasons. First, Faire can use its data advantage to recommend competing brands to your best retailers. Second, if you ever leave Faire, you take your product and your brand, but Faire retains the relationship data. Your best wholesale accounts may have Faire as their primary discovery and reorder platform, with your direct contact details as a secondary consideration.
The Hybrid Strategy
The optimal approach is not Faire vs. direct. Use Faire for discovery, direct for retention.
New retailer discovery is where Faire genuinely earns its commission. 800,000+ active retailers browse Faire regularly. A first order from a new-to-brand retailer that you’d never have reached otherwise is worth the 17-19% cost as a customer acquisition fee. It’s cheaper than a trade show appearance amortized across the accounts you’d acquire.
The problem is treating Faire as a permanent fulfillment channel. Once a retailer has placed their first reorder — demonstrating they stock your product and like the relationship — the economics strongly favor migrating them to direct. Invite them to your ordering portal with a small incentive. Keep their Faire account active for convenience if they prefer it, but work to shift the purchasing relationship.
OrderDock’s flat-rate pricing makes the direct portal math simple: $20-$99/month covers the portal regardless of how many accounts you migrate or how frequently they reorder. The per-order economics improve with every account that moves off commission-based channels.
| Channel | Cost Structure | Annual Cost ($200K GMV) | Data Ownership |
|---|---|---|---|
| Faire | 15-19% commission per order | $30,000-$38,000/year | Faire owns retailer data |
| Traditional Sales Rep | 10-15% commission | $20,000-$30,000/year | Rep owns relationships |
| Trade Show (annualized) | $8,000-$15,000/event, no per-order toll | $8,000-$15,000/year | Brand owns contacts |
| Direct Portal (OrderDock) | $20-$99/mo flat + ~3% processing | $1,200-$7,200/year | Brand owns all data |
Q&A
How much does Faire cost brands per order?
Faire charges 15% commission on all new-customer orders plus a $10 new-retailer fee on the first order. Payment processing adds 1.9-3.5% depending on the payment method. Combined, the effective take rate on a new-customer order runs 17-19%. Reorder commissions drop to the standard 15% without the $10 fee, but the margin impact remains substantial at volume.
Q&A
What is the gross margin difference between Faire and direct wholesale?
Brands typically see approximately 57% gross margin on direct wholesale orders. The same product sold through Faire on a first order yields roughly 22% gross margin after Faire's commission, fees, and processing. Reorder gross margin on Faire improves to approximately 42% — still 15 percentage points below direct. That gap represents the cost of using Faire as a permanent sales channel rather than a discovery tool.
Q&A
What is the pricing parity problem with Faire?
Faire requires brands to offer their lowest wholesale prices on the platform. This means you can't charge Faire retailers more to offset the commission — doing so would require raising your prices across all wholesale accounts. Brands that price optimally for Faire end up subsidizing the commission out of margin rather than passing it on. This locks brands into the commission structure indefinitely once they've standardized pricing around Faire's requirements.
Verdict
Faire is a discovery channel with a permanent margin tax. A direct portal is an infrastructure cost that doesn't scale with order volume. The right answer for most brands is both — use Faire for new retailer acquisition, then migrate accounts to direct once they've reordered. The hybrid strategy captures Faire's discovery value without permanently subsidizing every order.
Frequently asked