Faire vs Direct Wholesale for Small Brands: Which Path Wins?
Faire vs Direct Wholesale for Small Brands: Which Path Wins?
The short answer: you don't have to choose. Most successful small product brands use both Faire and direct wholesale together, each channel serving different strengths. Faire gives you immediate exposure and built-in buyer traffic. Direct wholesale gives you higher margins, stronger brand relationships, and control over your retail presence. The real question isn't which one to pick, but how to run both smartly so they complement each other.
Let's break down what each path actually delivers, where they fall short, and how to build a wholesale strategy that works for your candles, jewelry, skincare, home goods, apparel, or food brand.
What Is Faire, and How Does It Work for Wholesale?
Faire is an online wholesale marketplace where retail buyers browse products from thousands of small brands in one place. You list your products, set your wholesale price, and buyers from independent stores, gift shops, and specialty retailers discover and order from you.
The core appeal is simple: Faire handles discovery and brings buyers to your door. You don't have to cold-call or research stores yourself. According to Faire's own data, the platform connects millions of retail buyers with over 100,000 brands, making it the largest online wholesale marketplace for small-to-medium brands today.
Faire's main advantages:
- Minimal upfront work: your products are live and searchable within days
- No sales calls or relationship-building required; the platform handles buyer discovery
- Transparent pricing: you see exactly what each retailer pays and what terms they accept
- Automated order processing and payment handling
- Built-in buyer reviews and ratings, which build your credibility
Faire's real drawbacks:
- Fees: Faire takes 20% commission on every order plus payment processing fees
- Marketplace noise: your products compete with millions of others; standing out takes good photography and marketing
- Lower margins after fees: a 50% wholesale discount loses another 20% to Faire, leaving you with 40% of retail price
- Limited control: Faire owns the buyer relationship, not you
- Shipping complexity: you ship directly to each retailer, which means small, frequent orders rather than bulk accounts
What Is Direct Wholesale, and Why Do Small Brands Choose It?
Direct wholesale means you contact retail stores directly, build a relationship with the buyer or owner, and negotiate terms one-to-one. You handle everything: prospecting, pitching, order management, and shipping.
It's more work upfront, but the payoff is substantial. You keep your full wholesale margin (typically 50% off retail), you own the buyer relationship, and you can build accounts that reorder consistently and in larger volumes.
Direct wholesale's main advantages:
- Higher margins: no marketplace fees eating into your profit
- Relationship-based: buyers know your brand and you as a founder; they're more likely to reorder and promote you in-store
- Larger, predictable orders: many direct accounts become repeat customers who order in bulk
- Control over positioning: you decide how your product is presented and sold
- Flexibility: you can negotiate custom terms, exclusive arrangements, or co-op marketing
Direct wholesale's real challenges:
- Time-intensive research: you must identify, prospect, and qualify stores one by one
- No guaranteed traction: a store might reject you or go silent after your pitch
- Longer sales cycle: landing a direct account often takes weeks or months of follow-up
- Buyer contact information is hard to find; many independent retailers don't list wholesale contacts publicly
- You must manage logistics, invoicing, and payment collection yourself
- Rejection is frequent; expect to be turned down by 80% or more of the stores you pitch
Faire vs Direct Wholesale: Head-to-Head Comparison
| Factor | Faire | Direct Wholesale |
|---|---|---|
| Upfront effort | Low; list and wait | High; research, prospect, pitch |
| Margins (after all fees) | ~40% of retail price | ~50% of retail price |
| Time to first order | Days to weeks | Weeks to months |
| Buyer discovery | Automatic via platform | Manual research required |
| Repeat order likelihood | Medium; buyers browse often | High; relationship-based |
| Shipping logistics | Small, frequent shipments | Larger bulk orders (usually) |
| Relationship control | Platform owns buyer data | You own the relationship |
| Scalability for your brand | Limited without heavy marketing | Grows as you build account base |
Should You Use Faire, Direct Wholesale, or Both?
Use Faire If:
- You're brand new and need immediate proof of market fit
- You have limited time to prospect and pitch
- You want to test product-market fit across multiple retail categories
- You're okay with lower per-order margins in exchange for volume and ease
- You lack detailed contact information for independent retailers in your niche
Use Direct Wholesale If:
- You're willing to invest time upfront in prospecting and relationship-building
- Your products have higher margins and can afford the sales effort
- You want to build a predictable, repeat-customer base
- You want to own your retail relationships and control your brand story
- You're targeting specific store types or geographic regions where you can build a tight network
Use Both (The Hybrid Strategy):
Most scaling brands run both simultaneously because they serve different functions. Here's why the hybrid approach works:
Faire as your foundation: Faire keeps a steady stream of smaller orders coming in passively. It covers your baseline volume and doesn't require active sales effort.
Direct wholesale as your growth engine: Direct accounts are where you build predictable revenue. A single direct account that reorders every month is often more valuable than dozens of one-off Faire transactions.
Different buyer types: Large independent chains and high-end retailers often won't use Faire; they prefer direct relationships. Smaller boutique shops and gift stores often discover you first via Faire. Target different store types in each channel.
The most resilient wholesale strategy isn't either/or. It's building Faire volume while simultaneously landing direct accounts that become your recurring revenue base.
How to Execute Direct Wholesale at Scale Without Losing Your Mind
The biggest barrier to direct wholesale isn't whether it's worth it, it's the sheer logistical burden of finding stores, getting buyer contact details, personalizing your pitch, and following up.
Manual research—spreadsheets, Google Maps, store websites, guessing emails—wastes weeks. You end up with incomplete data, cold pitches that go nowhere, and no system for tracking which stores you've contacted or where each one is in your sales cycle.
This is where a dedicated wholesale prospecting tool makes all the difference. Instead of spending 10 hours researching 50 stores, you can build a qualified prospect list in 20 minutes. Instead of losing track of follow-ups, you have a clear pipeline showing which stores are hot leads and which need a second touch.
With BoutiqScout, you can:
- Build a targeted list of independent retailers that stock products like yours (filtered by location, store type, and product category)
- Get accurate buyer contact details (email, phone, names) without hours of research
- Personalize every outreach message in minutes, referencing what the store actually carries
- Track every email you send, every response you get, and exactly where each prospect stands
- Set reminders so follow-ups happen automatically, not when you remember
This turns direct wholesale from a chaotic guessing game into a repeatable sales process. You can land 5 to 10 direct accounts per month instead of 1 or 2.
The Numbers: How Much More Can You Make Going Direct?
Let's say you're selling a candle at $30 retail. Here's what your margin looks like in each channel:
| Channel | Retail Price | Wholesale Cost to Buyer | Your Net After Fees | % of Retail Price |
|---|---|---|---|---|
| Faire | $30 | $15 (50% discount) | $12 (after 20% Faire fee) | 40% |
| Direct Wholesale | $30 | $15 (50% discount) | $15 (no fees) | 50% |
On a single $15 order to a retail buyer, you keep $12 via Faire and $15 via direct. That's 25% more revenue for the same product.
Now scale that across 100 orders per month. Faire: $1,200. Direct: $1,500. That's $3,600 more per year from the same volume, just from eliminating marketplace fees.
But the real difference is repeat orders. A direct account that reorders every month becomes $180 in revenue per year (12 orders × $15). Faire orders are often one-time buys from buyers testing your brand. Landing 10 repeat direct accounts is worth $1,800 per year in recurring revenue alone.
How to Start: A Quick Roadmap
Month 1: Launch on Faire (Optional, but Easy)
If you haven't yet, set up your Faire store. Take it as a given that retail buyers in your category browse there. You'll get some orders while you build your direct pipeline.
Month 1–2: Build Your Direct Wholesale Prospect List
Identify 50 to 100 independent retailers that align with your brand. Think about store type, location, and product fit. If you sell skincare, target wellness shops, independent pharmacies, and lifestyle stores. If you make candles, target gift shops, home goods stores, and local boutiques.
Don't guess. Use BoutiqScout to identify and vet stores based on what they actually carry today. This takes an afternoon instead of a week.
Month 2–3: Pitch and Follow Up Systematically
Write 3 to 5 personalized email templates tailored to different store types. Pitch 10 to 20 stores per week, personalizing each email with the buyer's name and something specific about their store.
Track every email in your CRM or BoutiqScout's built-in pipeline so you know who you've contacted, when, and what they said. Set a 7-day follow-up reminder for every store that doesn't respond. Most retail buyers respond to a second or third touch, not the first.
Month 3+: Reorder and Rinse
As stores start saying yes, focus on fulfilling orders well, making reordering easy, and asking for feedback. Keep prospecting to build new accounts while your existing ones reorder.
Run Faire in the background. It's passive income at this point.
Common Questions Small Brands Ask
Is Faire a waste of time for serious brands?
No. Faire is a reliable revenue source for most small brands, especially in the first 12 months. But it shouldn't be your only channel. It's one tool, not your entire wholesale strategy.
How many direct accounts do I need to make it worth the effort?
Typically, 5 to 10 repeat direct accounts generate more revenue and stability than 100 one-off Faire orders. If you can land one direct account per month, you're building a sustainable base within three months.
Can I use the same products and pricing on both Faire and direct wholesale?
Yes, but consider offering better terms to direct accounts if they're placing large or repeat orders. A store ordering $500 per month deserves a better price than one buying $50 once. Faire's fixed 50% discount works fine for transactional buyers.
What's the typical wholesale margin retailers expect?
Standard is 50% off retail (meaning the retailer pays you half the retail price). Some will ask for 40% off if they're a major account; some specialty stores might accept 55% off retail if they're a great fit for your brand.
How long does it take to land a direct wholesale account?
On average, 4 to 8 weeks from your first email to a signed order. Some say yes in two weeks; others take three months. Persistence and follow-up matter far more than the quality of your first pitch.
The Hybrid Strategy in Action
Here's what success looks like:
- Month 1: Faire store is live, generating $200 to $500 per month in revenue
- Month 2: You've pitched 30 stores directly; 2 say yes and place their first order
- Month 3: Those 2 accounts reorder; you've pitched 60 stores total; 4 more say yes
- Month 4: You now have 6 direct accounts, 3 of which have reordered; Faire is steady at $300 to $400 per month
- Month 6: 15 direct accounts, 10 of which reorder regularly; Faire has grown organically to $400 to $600 per month
- Month 12: 40+ direct accounts, many reordering monthly; Faire accounts for 20% of wholesale revenue; direct wholesale is 80%
At this stage, direct wholesale is your core business, Faire is your diversified income stream, and you have a repeatable system for landing new accounts every month.
Start Building Your Wholesale Pipeline Today
Faire and direct wholesale aren't rivals. They're complementary channels that work best together. Faire gives you velocity and proof of market fit; direct wholesale gives you margin and stability.
The bottleneck for most small brands isn't deciding which channel to use, it's executing direct wholesale efficiently. Researching stores, finding buyer contact information, personalizing pitches, and tracking follow-ups takes time you don't have.
If you're serious about getting your products into retail stores, try BoutiqScout free. Build your first prospect list in 30 minutes, see exactly which stores align with your brand, and start pitching with confidence. You'll cut weeks out of your prospecting timeline and land your first direct accounts faster.
Your wholesale strategy starts with smart research. Everything else follows.
Frequently asked questions
Should I focus on Faire or direct wholesale first?
Start with Faire if you need revenue quickly and have limited time. But begin prospecting direct accounts in parallel. Faire covers your baseline; direct wholesale builds your growth. Most successful brands run both together from month two onward.
How much more do I make selling direct instead of through Faire?
Direct wholesale keeps 50% of retail price after your wholesale discount. Faire keeps ~40% after their 20% commission. That's 25% more margin per order. More importantly, direct accounts reorder consistently, turning them into recurring revenue. One good direct account is often worth more than dozens of Faire transactions.
How do I find retail stores to pitch directly?
Research independent retailers in your niche by location and product fit. Get buyer names, emails, and phone numbers. BoutiqScout automates this research, building a qualified prospect list in minutes instead of hours or days. You can then pitch systematically and track every follow-up.
What percentage of stores will actually buy from my cold pitch?
Expect a 10 to 20% conversion rate on qualified prospects if you personalize your pitch and follow up. That means landing 1 to 2 accounts per 10 stores you pitch. With BoutiqScout, you can pitch 20 to 30 stores per month, making this math very profitable.
Can I run both Faire and direct wholesale without getting overwhelmed?
Yes, because they require different effort. Faire is passive once set up. Direct wholesale requires systematic prospecting and follow-up, but using a structured process with tools like BoutiqScout keeps it manageable. Most brands easily handle both channels once their sales process is organized.
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