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Grow your sales on Faire with affordable free shipping

May 15, 2024 | Published by Faire

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When we ask retailers what would get them to spend more with brands on Faire, the first answer is almost always the same: free shipping. In fact, retailers are actually 30% more likely to make a purchase when free shipping is on the table. 

But we also know free shipping on wholesale orders is incredibly difficult for independent brands to offer at scale. Not only is it expensive, but brands say the unpredictability of shipping costs can eat into margins, and individual agreements are time-consuming and tedious to track. 

This is why we’re launching the Insider Partnership program for North American brands that sell on Faire—to help brands fuel their growth by offering more free shipping on their products to top buyers without having to cover all the costs themselves. 

We’ve seen the power of targeted free shipping firsthand through years of running our retailer membership program, Insider, but, historically, brands haven’t had a way to participate. Now we’re investing more in expanding free shipping overall on Faire and inviting brands to become Insider Partners. 

When brands opt in to become an Insider Partner, we’ll pay the shipping costs on eligible marketplace Insider orders, and partnering brands will pay the shipping costs on eligible Faire Direct Insider orders. Together, we’ll be able to offer higher levels of free shipping to retailers than either of us would be able to offer alone.

How does the Insider Partnership work?

We designed the Insider Partnership so that brands can partner with us to offer more free shipping to top buyers—with Faire covering a lot of the costs. Starting August 22, if you opt in as an Insider Partner:

  • More Insiders will get free shipping on your brand in the marketplace, which will be paid for by Faire.
  • Eligible 0% commission Faire Direct Insiders will also qualify for free shipping, which you will pay for as part of the partnership. You’ll only pay when you sell.

Insider uses estimated shipping costs to offer free shipping when it makes financial sense as a way to drive conversion. More specifically, when you become an Insider Partner, Insiders will be eligible for free shipping on your brand when the estimated cost to ship to their location is less than 13% of the total order amount. Eligible Insiders will see free shipping on your brand before they decide to order, so these shipping-cost estimates are based on their location and your prior reported shipping costs. 

If actual shipping costs exceed 13% of the order amount, Faire will cover the difference. (If you’d like to offer less free shipping to Insiders, at a lower cost to you, you can choose the Insider Partner Basic option, which uses 10% as a guardrail instead of 13%.) 

Why isn’t Faire covering Insider free shipping on Faire Direct orders anymore?

Retailers consistently tell us they want free shipping more often, and we know brands like yours care deeply about acquiring new customers. Expanding Insider free shipping is a way of achieving both. To make this possible, however, we can no longer fund Insider free shipping on 0% commission Faire Direct orders. As these orders have become a bigger part of our business, this cost has limited our ability to grow free shipping on Faire overall. 

Partnering together on these shipping costs allows us to reinvest Faire’s commission dollars toward your new customer growth, while still giving you an economical way to offer free shipping to your Faire Direct Insider customers.

How becoming an Insider Partner can benefit your business

The quality of a product is always going to be the most important consideration for retailers when making a purchase. After that? It’s free shipping. 

Offering more free shipping to Insiders can help you: 

  • Convert more new customers. Retailers are 30% more likely to make an initial purchase when they see free shipping is offered.
  • Build loyalty with existing customers. Retailers reorder 30% more when they get free shipping. They not only place larger orders but also order more often.
  • Get more exposure to top buyers on Faire. We have more than 90,000 Insiders shopping on Faire today. These buyers not only drive 80% of Faire sales, but they also buy twice as much as non-Insiders overall, and most of their spend is with brands that have free shipping.
This image is illustrative and does not represent your brand’s data.

Brands have repeatedly told us that it’s challenging to understand when free shipping will result in a positive return on their investment. To see what this could mean for your business specifically, visit the Insider Partnership page in your brand portal. We’ve crunched the numbers for your brand so you can see estimates for what your free shipping coverage, sales impact, and costs could look like as an Insider Partner—all based on your brand’s data from April 2023 to March 2024.

What else do I need to know about the program?

Key dates to know

As you consider whether an Insider Partnership is right for your brand, mark the following dates on your business calendar:

What is the difference between Insider Partner and Insider Partner Basic?

We created two partnership options brands can choose from:

  • The Insider Partner option offers the most Insider free shipping on your brand. Insiders with estimated shipping costs below 13% will be eligible for free shipping. If actual shipping costs exceed 13%, we’ll cover the difference.1 Additionally, your current Faire Direct Insider customers getting free shipping on your brand will continue to be eligible for free shipping when the Insider Partnership launches on August 22, even if shipping costs exceed 13%.
  • The Insider Partner Basic option lets you offer a more limited amount of Insider free shipping, at a lower cost to you. Insiders with estimated shipping costs below 10% will be eligible for free shipping on your brand. If actual shipping costs exceed 10%, we’ll cover the difference.1 If you have Faire Direct customers with estimated shipping costs above 10%, they will no longer be eligible for Insider free shipping on your brand if you opted in to Insider Partner Basic.

While we recommend the Insider Partner option as the most cost-effective way to maximize your growth with free shipping, we recognize every business is different and encourage you to consider your specific business’s needs in choosing your partnership option.

What happens if I don’t opt in?

If you choose not to opt in to the Insider Partner program, eligible Insiders in the marketplace will still see free shipping on your brand at a similar level to what we offer today, which will be paid for by Faire, but none of your 0% commission Faire Direct customers will be offered Insider free shipping on your products starting August 22. 

What will Insiders see if my brand offers free shipping?

An Insider free-shipping badge, like the one above, will show up on your brand’s products and shop page. Some Insider free shipping requires an order of $300 to qualify and will display an “Insider over $300” badge.

How much will Insider free shipping on my brand grow if I become an Insider Partner?

When you opt to become an Insider Partner, we’ll expand your Insider eligibility so that more Insiders can enjoy free shipping on your brand. Insiders will see free shipping when the estimated cost to ship is below a certain threshold: 13% of the order size if you select the Insider Partner option and 10% if you select Insider Partner Basic. 

We use the retailer’s location and your prior reported shipping costs in our estimate, and this eligibility applies to both marketplace and Faire Direct relationships.

Whether you opt in or not, Faire Direct commission will remain at 0%, and Faire will continue to pay for sign-up discounts and one year of free shipping for any new retailers you bring to Faire. Check out this article if you want to learn more about Faire Direct.

Is the Insider Partnership new?

Yes, the Insider Partnership is a new program for brands. A small group of brands participated in a similar, but differently structured, Insider free-shipping pilot program over the last several years. That pilot is evolving into the Insider Partnership starting August 22. 

For more FAQs related to the Insider Partnership, visit our help center.

New to Faire? Sign up to shop, or apply to sell.

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