The Shipping Speed Paradox: Why DTC Brands Are Slowing Down
In this article
5 minutes
Everyone’s talking about faster delivery. Amazon’s promising drone drops. Walmart’s turning stores into micro-fulfillment centers. And customer expectations? Sky high. But here’s the thing: most DTC brands aren’t speeding up, they’re tapping the brakes.
Sounds counterintuitive, right? But in 2025, slowing down might actually be the most strategic move you can make.
The Delivery Arms Race: Amazon and Walmart Go All-In
Let’s start with the big players. Amazon has spent the better part of a decade conditioning customers to expect one- or two-day delivery. In 2024, they doubled down again. More inventory was moved closer to end customers using their “regionalization” strategy, which chopped fulfillment distances in half. The result? According to Supply Chain Dive, 65% of Prime orders in Q2 2025 arrived the same day or the next day.
Walmart isn’t far behind. They’ve converted more than 4,500 stores into last-mile delivery hubs and are investing in AI-powered inventory placement. They’ve even launched parcel stations right inside their stores to boost local delivery capacity.
And yes, both are experimenting with drones. Amazon is testing lightweight drone delivery in a few southern U.S. zip codes. Walmart too. But let’s be honest: we’re still in science-project territory. Drone delivery may be flashy, but it’s barely scratching the surface of what really moves ecommerce.
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I'm Interested in Saving Time and MoneyMeanwhile, DTC Brands Are Quietly Slowing Down
This part of the story isn’t getting enough airtime. While the retail giants race toward one-hour windows, thousands of independent ecommerce brands are stepping back.
Not because they want to disappoint customers, but because they can’t afford to keep up, and chasing Amazon’s logistics playbook is a losing game when you don’t have Amazon’s budget.
You know what I’m seeing? Brands freezing SKUs. Shrinking warehouse footprints. Letting go of that “2-day everywhere” promise. Not because they’re failing, but because they’re adapting.
And it’s not just a gut feel. According to July 2025 reports, Shopify store closures now outpace new installs. Many of those closures are logistics-related, brands crushed under the weight of expectations they could no longer afford to meet.
What Customers Actually Care About
Let’s cut through the noise.
A 2025 McKinsey study shows customers care about three things in this order:
- Free shipping
- Reliable delivery timelines
- Speed (same/next day)
Sustainability? It ranked dead last.
In fact, only 26% of shoppers said they’d pay even $1–2 extra for eco-friendly delivery. And when researchers tracked actual conversions? Fewer than 10% followed through. So while “green shipping” sounds great in a press release, it’s rarely what gets the sale.
Translation: customers expect fast and free. That’s a tough combo for DTC brands with thin margins.
The Hidden Costs of Chasing Speed
The faster you ship, the more you pay. You either:
- Store more inventory closer to the customer (higher storage and distribution costs), or
- Ship from a central location via air (higher parcel and carrier fees), or
- Overstaff fulfillment ops and erode margin at scale
Speed isn’t free, and when volume slows or inventory piles up, you’re left with expensive sunk costs.
We’re seeing the result now. DTC brands are caught in the “stockpile trap,” where inventory equals cash sitting on shelves. Remember, inventory isn’t just product; it’s tied-up working capital. If you can’t sell it fast enough to fund reorders, you’re stuck.
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Get My Free 3PL RFPThe Drone Mirage
Let’s revisit the drones. They’re real. They’re operational in some pilot markets. But they’re limited to:
- Small packages under 5 pounds
- Favorable weather
- Specific delivery zones with limited obstructions
For the average brand selling apparel, home goods, or supplements, drones don’t meaningfully move the needle yet. And they won’t for most of 2025. If you’re betting your fulfillment future on drone scalability, you’re early. Way early.
Slowing Down on Purpose Is Not the Same as Falling Behind
When growth stalls, I don’t panic. I pause. I fix what’s broken, not what’s trending.
At Cahoot, we’re seeing smart brands slow down intentionally to:
- Vet new 3PLs or hybrid fulfillment solutions
- Reprice SKUs based on true landed cost
- Trim the fat from overbuilt operations
- Reallocate dollars from speed to retention
Slowing down doesn’t mean giving up. It means strengthening the core so you can scale sustainably when the market rebounds.
The Strategic Path Forward
Here’s the real takeaway: you don’t have to match Amazon or Walmart on delivery speed to win. You just have to meet your customers’ expectations and protect your margin while doing it.
Use 2025 to:
- Reaudit your shipping promises
- Simplify where needed
- Explore fulfillment partners that optimize speed and cost
- Make sure every dollar in ops contributes to LTV, not just CTR
Because speed is sexy, but resilience is what keeps you in the game.
Frequently Asked Questions
What is the “shipping speed paradox” in ecommerce?
It refers to the trend where retail giants are racing toward faster delivery, while many DTC brands are pulling back due to cost and sustainability constraints.
Are consumers really demanding same-day delivery?
Not necessarily. Most customers prioritize free shipping over speed. Same- or next-day delivery is nice to have, not a dealbreaker for most shoppers.
Why are DTC brands slowing down their delivery promises?
Because matching Amazon-level speed is expensive and often unsustainable for smaller brands without massive logistics infrastructure.
What’s the status of drone delivery for ecommerce brands in 2025?
Still very early. Amazon and Walmart are testing drone delivery, but it remains limited to small packages and specific markets.
How can DTC brands stay competitive without fast delivery?
By offering reliable shipping timelines, clear communication, and great post-purchase experiences. Fulfillment partners like Cahoot can also help streamline speed without killing margin.
Written By:
Manish Chowdhary
Manish Chowdhary is the founder and CEO of Cahoot, the most comprehensive post-purchase suite for ecommerce brands. A serial entrepreneur and industry thought leader, Manish has decades of experience building technologies that simplify ecommerce logistics—from order fulfillment to returns. His insights help brands stay ahead of market shifts and operational challenges.
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Top 10 Ecommerce Returns Mistakes (and How to Fix Them)
Returns are no longer just a post-sale nuisance, they’re a defining part of your customer experience, your margin, and frankly, your brand.
Top 10 Ecommerce Returns Mistakes (and How to Fix Them)
In this article
5 minutes
- 1. Not Having a Clear Return Policy
- 2. Offering Free Returns Without Doing the Math
- 3. Making the Return Process a Hassle
- 4. Treating Returns as a Cost Instead of a Signal
- 5. Not Reselling What You Could
- 6. Refunding Too Slowly
- 7. Not Offering Exchanges
- 8. Forcing Customers to Pay for Damaged or Defective Returns
- 9. Ignoring International Return Complexities
- 10. Treating Returns Like a Backroom Issue
- Final Thought
- Frequently Asked Questions
Returns are no longer just a post-sale nuisance, they’re a defining part of your customer experience, your margin, and frankly, your brand. Yet so many brands treat returns like a cost center to ignore until it bites them.
I’ve been deep in the ecommerce trenches long enough to know this: if you don’t actively manage returns, they will manage you. Let’s walk through the top 10 mistakes I see over and over, and what you should do differently before your profit margins take a nosedive.
1. Not Having a Clear Return Policy
If your return policy is vague, buried, or just plain confusing, you’re not just frustrating your customers; you’re setting yourself up for chargebacks, bad reviews, and support nightmares.
Fix: Spell it out. Be upfront about what’s returnable, how long customers have, and how they initiate a return. Make it easy to find (footer link, FAQ, order confirmation email) and easy to understand (no legalese, no fine print tricks).
2. Offering Free Returns Without Doing the Math
Yes, free returns boost conversion, but they can destroy margins if you’re not careful. Too many brands offer them without understanding their actual cost per order.
Fix: Run the numbers. Factor in shipping costs, restocking labor, product condition loss, and processing time. Then decide if free returns should be conditional (only for first-time orders, only for full-price items, etc.).
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See How It Works3. Making the Return Process a Hassle
Ever tried returning something and had to print three pages, repack it just right, and get to the post office before 4 pm on a Tuesday? Your customers hate that too.
Fix: Make it stupid easy. Include a prepaid return label or offer printerless returns with QR codes. Let customers initiate the return online without calling support. Track returns in the same dashboard as orders.
4. Treating Returns as a Cost Instead of a Signal
Returns are data. They tell you what’s broken, literally and figuratively, in your business—sizing problems, misleading descriptions, shipping damage, and quality issues. Most brands never read the return reasons, let alone analyze trends.
Fix: Create a monthly returns report. Track reasons by SKU, channel, and geography. Spot patterns. If one item has a 20% return rate, figure out why and fix it.
5. Not Reselling What You Could
Returned items that are perfectly good shouldn’t be collecting dust or ending up in landfills. If you’re trashing usable inventory, you’re leaving money on the table.
Fix: Set up a reverse logistics plan to restock, refurbish, or resell items via outlets, liquidation partners, or marketplaces like eBay. Every recovered dollar counts.
6. Refunding Too Slowly
Waiting 14 days after receiving a return to issue a refund might protect your cash flow, but it destroys trust. Customers start wondering if they’ve been ghosted.
Fix: Tighten up the refund cycle. Ideally, within 2–3 days of receipt. Automate confirmations and refund notices. Build goodwill by being proactive.
7. Not Offering Exchanges
Here’s the thing: Most customers returning something still want what you sell; they just want the right version of it. If you don’t offer easy exchanges, you’re turning potential revenue into refunds.
Fix: Enable smart exchanges. Let customers swap for different sizes or styles right in the return portal. Offer free exchanges even if returns aren’t free. Keep the sale.
8. Forcing Customers to Pay for Damaged or Defective Returns
This one’s brutal. Customer gets a busted item, reaches out, and you hit them with a return shipping fee? Say goodbye to that lifetime value.
Fix: Have a clear damaged/defective policy. Cover return shipping and offer replacements ASAP. Yes, it costs you in the short term, but it’s a small price for loyalty.
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I'm Interested in Peer-to-Peer Returns9. Ignoring International Return Complexities
Cross-border returns are a whole different beast—duties, taxes, restocking in the wrong region—it gets expensive fast. Many brands just say “no international returns” and hope no one notices.
Fix: If you’re selling internationally, design a return flow that works. Use local carriers and consolidation partners. Consider refunding without return in some low-cost, high-friction cases.
10. Treating Returns Like a Backroom Issue
Returns shouldn’t be siloed to warehouse staff or an outsourced 3PL with zero feedback loops. If marketing, product, CX, and ops aren’t all looking at return trends, you’re missing out.
Fix: Returns are a team sport. Share data across departments. Let product know what breaks. Let CX see trends. Let marketing tweak messaging to reduce mismatch expectations.
Final Thought
Returns aren’t going away. In fact, they’re becoming more critical to your brand than ever. Nail the return experience and you’ll win more loyalty, reduce costs, and create the kind of customer-centric business that actually survives the shakeouts we’re seeing in 2025.
You don’t have to be perfect. But you do have to be intentional.
Frequently Asked Questions
What’s the biggest return mistake ecommerce brands make?
Not having a clear, easily accessible return policy that sets customer expectations.
How can I reduce the cost of free returns?
Limit them to certain SKUs, order types, or customers, and audit the return rates by product.
Should I allow exchanges instead of just refunds?
Yes, exchanges help preserve the sale and increase customer satisfaction.
How fast should refunds be processed?
Ideally, within 2–3 days of receiving the returned item.
What should I do with returned inventory?
If it’s resellable, restock or liquidate it through the right channels to recover margin.
Written By:
Jeremy Stewart
Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.
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The Shipping Speed Paradox: Why DTC Brands Are Slowing Down
Everyone’s talking about faster delivery.
Why the Tariff Pause Isn’t Free Money, And What Smart Brands Should Do Instead
So here we are: July 2025. Tariffs on China-made goods are sky-high, but the dust has temporarily settled. There’s a pause in new enforcement actions. And what’s the first thing a lot of brands are doing?
Stockpiling like it’s Costco on a snow day.
Look, I get the impulse. You want to beat future price hikes. Lock in rates now. Stay ahead of the next wave. But this mindset, that the tariff pause is some kind of bonus round or rebate window, is a dangerous trap. I’ve seen it play out, and it rarely ends well.
Why Brands Are Stockpiling (And Why That’s Risky)
Modern Retail recently highlighted how brands are tying up cash in inventory that might not sell for months. Some are maxing out warehouse capacity. Others are renting trailers just to hold product.
That’s not a strategy. That’s panic disguised as preparedness.
When you stockpile, you’re converting liquidity into risk. You’re betting on stable demand, perfect forecasting, and a logistics environment that won’t throw any curveballs. That’s a lot of assumptions.
And the math isn’t pretty:
- Holding costs are rising (storage fees, insurance, shrinkage).
- Demand is softening across DTC; June sales were down 25% YoY for small brands.
- Interest rates remain high, so capital is expensive.
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I'm Interested in Saving Time and MoneyInventory Isn’t An Asset If It’s Not Moving
Let’s stop pretending every product sitting in a warehouse is “value.” If it’s not turning, it’s dead weight. And right now, many brands are sitting on SKUs that may not move until Q4, if at all.
Worse, some brands are prepaying for production to “lock in pricing,” leaving them vulnerable to shifts in demand, freight delays, or SKU obsolescence. Cash on shelf is not cash in hand.
I’ve personally seen brands take on more inventory than they could realistically sell in two quarters. And once your cash is tied up, options disappear. Marketing slows. Hiring freezes. And suddenly, you’re in survival mode, not growth mode.
What Smart Operators Are Doing Instead
The brands I see winning right now aren’t chasing bulk discounts; they’re chasing flexibility.
Here’s what they’re doing:
1. Hedging their sourcing
They’re not all-in on one supplier. They’re exploring Mexico, Vietnam, and even domestic production where feasible. Not because it’s cheaper (it’s often not), but because diversified sourcing creates leverage and optionality.
2. Rebalancing cash flow
Rather than drop $100K on inventory, they’re testing shorter runs. They’re working capital lines in smarter ways. And they’re getting surgical with demand planning, looking at return rates, sell-through velocity, and seasonality with fresh eyes.
3. Rethinking fulfillment
Tariffs are just one cost center. Fulfillment is another. Now’s the time to evaluate whether your fulfillment model is nimble. Can you scale up fast if demand spikes? Can you pull back quickly if it softens?
This is where Cahoot-style distributed fulfillment is a game-changer. You don’t have to commit to massive inventory deposits in one location. You flex regionally, based on demand, saving money on last-mile shipping and reducing your warehouse exposure.
The Trap Of Tariff-Driven Optimism
Every time there’s a pause, brands breathe a little easier. I get it. But temporary relief isn’t a long-term strategy. Tariffs could rise again. Port delays could return. Consumer sentiment could weaken further.
Smart founders are treating this moment like a chess move, not a victory lap. They’re asking:
- Where am I most exposed?
- Where am I overcommitted?
- How fast can I pivot if X happens?
If you can’t answer those questions confidently, you’re not in control, you’re just hoping the next hit doesn’t land.
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Get My Free 3PL RFPFinal Thought: Play For Resilience, Not Rebates
This isn’t about being pessimistic. It’s about being ready.
There’s opportunity in this pause. But it won’t come from stockpiling; it’ll come from brands who treat the next 60 days as a strategic window. Tighten up ops. Diversify your sourcing. Build fulfillment agility.
Use the pause to prep your playbook, not to pile up product.
Frequently Asked Questions
What is the risk of stockpiling inventory during a tariff pause?
It ties up cash, increases holding costs, and exposes brands to shifts in demand or logistics disruptions.
How should brands respond to tariff uncertainty?
Diversify suppliers, test shorter production runs, and maintain fulfillment flexibility.
Is now a good time to invest in bulk production?
Only if demand forecasting is strong, otherwise, it’s safer to focus on agility.
How can a fulfillment strategy reduce tariff-related risk?
A flexible, distributed model like Cahoot helps reduce shipping costs and regional storage exposure.
Will tariffs increase again in 2025 and beyond?
It’s unclear, but most experts expect volatility; brands should plan accordingly.
Written By:
Jeremy Stewart
Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.
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The Shipping Speed Paradox: Why DTC Brands Are Slowing Down
Everyone’s talking about faster delivery.
Why Slowing Growth Could Be Your Secret Competitive Advantage
In this article
4 minutes
- Growth Is Down? Good. Now Let’s Talk.
- The Pause Is Where The Magic Happens
- What Smart Brands Are Doing During The Slowdown
- Chasing Better Instead Of More
- Why Now Is The Best Time To Reinvent Your Ops
- What We’re Seeing At Cahoot
- Final Thought: Use The Slow Season To Outsmart, Not Outspend
- Frequently Asked Questions
Growth Is Down? Good. Now Let’s Talk.
This might sound strange coming from someone who spends their days helping ecommerce brands grow faster, ship smarter, and compete with giants. But here it is:
Slowing growth isn’t always bad. In fact, sometimes it’s exactly what your brand needs.
It forces you to pay attention to stuff you were too busy to look at before. Broken ops. Cost sinks. Sketchy suppliers. Shaky unit economics. When you’re growing at all costs, this stuff hides in the background. But when things slow down? It all surfaces.
Right now, according to AlixPartners, we’re seeing one of the sharpest ecommerce spending slowdowns in a decade. Consumers are pulling back. Tariffs are throwing sand in the gears. The Shopify Index shows more store closures than installs for the first time in years. And if you’re feeling the heat, you’re not alone.
But here’s the thing: this slowdown could be your wake-up call or your unfair advantage. Depending on what you do with it.
The Pause Is Where The Magic Happens
Every founder I know has sprinted through phases of insane growth where “we’ll fix that later” becomes a mantra. But later rarely comes. Until it’s forced on you.
That’s where we are now. A lot of brands are quietly hitting the wall. Not because their products are bad. But because their ops can’t keep up with their ambition.
So if growth has stalled for you, try asking:
What would I fix if I weren’t constantly chasing more?
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What Smart Brands Are Doing During The Slowdown
Here are a few moves I’m seeing from operators who aren’t just waiting it out:
- Rebuilding their supplier network; offshoring was fine when margins were fat, but now nearshoring and dual sourcing are saving cash and reducing risk
- Auditing packaging, because oversized boxes are silent profit killers
- Rebalancing inventory with better forecasting tools, instead of stockpiling and hoping
- Training teams instead of just hiring faster, focusing on repeatability and clarity
- Experimenting with fulfillment models (Cahoot-style distributed shipping, hybrid 3PL + self-fulfillment setups, or even zone-skipping trials)
In short: they’re fixing the things they ignored while things were working “well enough.”
Chasing Better Instead Of More
There’s this quiet revolution happening among founders who are done with the growth-at-all-costs treadmill. They’re not giving up on scale, they’re just being smarter about it.
It reminds me of a conversation I had recently with a brand that pulled back from seven channels to three. Their sales dipped 12% for the quarter… but margins rose 18%, CSAT jumped, and their returns dropped by a third. Turns out, doing fewer things better pays.
They told me, “We stopped chasing ‘more’, and started chasing better.”
That stuck with me.
Why Now Is The Best Time To Reinvent Your Ops
Because no one else is.
Everyone else is panicking. Slashing budgets. Blaming ads. Praying Meta’s new algo will swing things around.
If you take this pause and use it to re-architect your backend, supply chain, fulfillment, customer experience, and inventory cadence, you will exit stronger. Period.
This is where you gain margin that compounds. This is where you discover operational leverage. And this is how you get ready for volume before it returns.
What We’re Seeing At Cahoot
Some of the smartest brands we work with are using this moment to finally clean up the mess:
- Testing Cahoot’s peer-to-peer fulfillment to reduce shipping zones and cost per package
- Auditing their warehouse placement to lower delivery time without overspending on storage
- Automating order routing and splitting to serve customers faster with less ops overhead
It’s not sexy, but it works. One brand cut its average shipping cost by 22% without changing carriers. Just smarter routing and storage.
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Get My Free 3PL RFPFinal Thought: Use The Slow Season To Outsmart, Not Outspend
If growth has slowed, don’t just ride it out. Don’t just “make it through.”
Use it.
This is your shot to fix the stuff that matters. The stuff that makes growth sustainable, not scary. Because when things rebound, and they will, you’ll be ready. Faster, leaner, stronger.
Pause on purpose. The smart ones always do.
Frequently Asked Questions
What should I do if my ecommerce growth stalls?
Use the pause to fix operations, audit inventory, vet suppliers, and improve fulfillment.
Why is slowing down a good thing for DTC brands?
It creates space to optimize backend systems and improve margins.
How are brands responding to the ecommerce slowdown?
They’re rethinking their supply chains, experimenting with fulfillment, and improving forecasting.
Is this a temporary slump or a long-term shift?
It’s likely a correction, but smart brands treat it as an opportunity to get leaner and stronger.
Can Cahoot help during a growth slowdown?
Yes, by optimizing fulfillment and reducing shipping costs, Cahoot helps brands improve ops even when volume dips.
Written By:
Indy Pereira
Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.
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The Shipping Speed Paradox: Why DTC Brands Are Slowing Down
Everyone’s talking about faster delivery.
DTC Brands Are Dying Faster Than Ever
Ecommerce isn’t just cooling off; it’s contracting
In Q2 2025, Shopify store closures outpaced new installs for the first time ever: 1.5 closures per new store. That’s not a blip. That’s a reckoning.
Revenue for small DTC brands is down 25% year over year. The overall DTC market is down 9%. And consumer spending sentiment is the weakest it’s been since 2023. Just in April, 1% of DTC brands filed for Chapter 11. That’s a flood.
So what’s going on? Why now? And what can you actually do about it if you run a brand or support one?
The “Why” Behind the Collapse
Tariffs + Inventory = Cash Flow Crisis
Here’s the brutal math: tariffs go up; landed cost skyrockets. And a lot of brands placed orders ahead of the tariff hikes, only to watch demand dry up. Now they’re sitting on overpriced inventory they can’t move, tying up precious cash. Inventory isn’t just stuff on shelves; it’s money trapped in cardboard.
CAC Is Climbing; Retention Isn’t Saving You
Customer acquisition costs are going up, just as the effectiveness of paid channels is going down. Even retention can’t save you when consumers are delaying purchases or trading down to cheaper alternatives. Many brands already pulled future revenue forward during the 2020–2022 boom. Now, there’s nothing left to squeeze.
Post-COVID Saturation Is Real
Let’s be honest: not every brand deserves to exist. Many were spun up with plug-and-play toolkits and cheap paid ads. That worked when capital was cheap and consumers were bored. Now? The music stopped. And not everyone found a chair.
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I'm Interested in Saving Time and MoneyWhy Now?
A few reasons:
- Macroeconomic headwinds: Tariffs, inflation, and consumer anxiety are colliding.
- The era of easy VC money is over: Brands are being forced to act like real businesses.
- Platform fatigue: Shopify, Amazon, and TikTok Shops are crowded and expensive to win on.
This isn’t just a cyclical dip; it’s a structural correction. We’re witnessing the clearing of an ecosystem that got way too crowded, way too fast.
Who’s Most Vulnerable?
Brands that were built on borrowed time and easy growth:
- Brands with high CACs and low AOVs
- Brands heavily reliant on paid social for discovery
- Brands with no supply chain flexibility
- Brands without real community, loyalty, or differentiation
Real examples:
- Flaus canceled a $30K Hamptons pop-up.
- Beau Ties of Vermont cut staff hours.
- Loftie saw lamp sales drop 80%.
What You Can Do
Audit Your Cash Flow Now
Know exactly how many months of runway you have, with and without new revenue. Get real about your burn and where the landmines are.
Recalculate Your CAC & Contribution Margins
Don’t just look at blended ROAS. Look at the actual contribution margin after fulfillment, returns, payment fees, and platform costs. If you’re underwater on a hero SKU, fix it or cut it.
Diversify Fulfillment & Cut Ops Costs
With tariffs, shipping surcharges, and inflation hitting from all angles, fulfillment is your biggest lever. Use it. A partner like Cahoot can unify fulfillment across channels, reduce shipping zones, and preserve margins.
Reprioritize Community, Not Just Campaigns
Start building real relationships, not just funneling ad dollars. Brands with real communities are taking less of a hit right now. That’s not a coincidence.
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Get My Free 3PL RFPWhat the Future Looks Like
It’s going to get worse before it gets better.
Expect more closures, more acquisitions, and more consolidation. But also: the strongest brands, the ones with real margins, operational discipline, and customer loyalty, will finally have room to grow again.
This moment is painful, but it’s also clarifying. The ecosystem can’t support 100 brands selling the same $49 water bottle with a different logo. The brands that survive this cycle will be the ones that finally build a real business.
Frequently Asked Questions
What’s causing the DTC brand collapse in 2025?
Tariffs, inflation, rising customer acquisition costs, and oversaturation in key categories are squeezing margins and killing demand.
Why are so many Shopify stores shutting down?
Closures now outpace new installs. Many brands can’t survive rising CAC, unsold inventory, and cash flow pressure.
Are all DTC brands at risk?
Not all, but the most vulnerable are those reliant on paid acquisition, single-channel sales, or undifferentiated products.
Are Shopify brands more vulnerable than Amazon sellers?
Often, yes; Amazon sellers may have more built-in demand and streamlined fulfillment.
What categories are getting hit hardest by the economic pressures of 2025?
Home goods, wellness, and accessories have seen the sharpest demand drop.
What can DTC operators do right now?
Get ruthless on cash flow, margins, and operational flexibility. Cut burn, audit margins, diversify fulfillment, and refocus on loyalty and community. Flexible, scalable fulfillment can reduce overhead and improve margins, crucial for survival.
Citations
- Tariffs Trigger the Sharpest Drop in Online Spending in Over a Decade: Read more.
- Faced with economic anxiety, retailers pare expectations for the year: Read more.
- Brands grapple with strained cash flow amid tariffs: Read more.
- US prices for China-made goods rise faster than inflation, analysis shows, as tariffs bite: Read more.
- US prices for China-made goods sold on Amazon rising faster than inflation: Read more.
Written By:
Manish Chowdhary
Manish Chowdhary is the founder and CEO of Cahoot, the most comprehensive post-purchase suite for ecommerce brands. A serial entrepreneur and industry thought leader, Manish has decades of experience building technologies that simplify ecommerce logistics—from order fulfillment to returns. His insights help brands stay ahead of market shifts and operational challenges.
Turn Returns Into New Revenue
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Luxury Brands on TikTok: How TikTok’s Influence Is Reshaping Luxury Retail
In this article
8 minutes
- Luxury Brands on TikTok: From Reluctant to Ready
- Gen Z Trusts TikTok More Than Traditional Retail
- Physical Footfall Meets Digital Discovery
- For Ecommerce Operators: What This Means
- TikTok Is a Platform, but It’s Also a Lens
- Ecommerce Is Now Entertainment
- Final Take: Don’t Chase Trends. Build Culture.
- Frequently Asked Questions
When you think of luxury fashion, what comes to mind? Glossy magazines. Paris runways. $3,000 handbags. Today, luxury fashion brands are embracing new strategies on TikTok, adapting their traditionally exclusive image to connect with younger, digital-savvy audiences.
Now add this to the list: A teenager in sweatpants unboxing Louis Vuitton on TikTok while dancing to a trending sound.
Welcome to luxury in the age of TikTok, where Gen Z’s trust in fashion is built in 30-second videos, not storefronts. And it’s not just an aesthetic shift, it’s reshaping retail, ecommerce, and how consumers decide what’s worth their money, as the social platform continues to redefine the landscape of luxury retail.
Luxury Brands on TikTok: From Reluctant to Ready
For years, luxury brands avoided TikTok like it was fast fashion. Too noisy, too chaotic, too “off-brand.” But as the luxury space evolves, TikTok is changing how these brands connect with new demographics and build cultural relevance.
But the tide has turned, and not just for views.
Brands like Louis Vuitton, Gucci, and Fenty Beauty are now leaning into TikTok strategy, developing innovative strategies to engage audiences and drive brand awareness. These luxury brands and other premium brands are leveraging TikTok’s unique features to create engaging posts that resonate with their target audiences. Their success is evident in increased engagement rates, higher visibility, and a stronger connection with younger consumers. This shift marks a new mindset for the luxury brand world, as even established fashion brands are adopting TikTok to showcase their collections and personalities.
Why?
Because the average engagement rate on TikTok is over 5%, it dwarfs other platforms, especially when brands focus on engaging content and creative posts. Because Gen Z audiences don’t want to be sold to, they want to be in on the moment. Because TikTok users treat brands as characters in a shared story, not distant monoliths, and brands are tailoring their content to these audiences for maximum impact.
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I'm Interested in Saving Time and MoneyGen Z Trusts TikTok More Than Traditional Retail
A growing number of young people don’t trust billboards or brand websites. They trust when a user comments, “this bag is worth it” on a GRWM video, seeing it as authentic engagement.
This isn’t just “social proof,” it’s social curation. TikTok creators become tastemakers. They translate luxury fashion into something relatable, even aspirational, again, for an audience who grew up during economic uncertainty. The interest generated by TikTok content drives higher engagement and sales, as customers are drawn in by rising curiosity and platform popularity.
Brands are increasingly listening to their customers, using feedback and reviews to shape brand perception on TikTok. Understanding customer preferences and sharing educational content helps build loyalty and makes luxury products more accessible and desirable.
It’s less “here’s a product” and more “here’s how this product makes me feel.”
Physical Footfall Meets Digital Discovery
Surprisingly, TikTok isn’t just fueling online sales. It’s driving physical store visits, too.
Fashion-savvy users are tracking down items they saw in TikTok hauls. They’re walking into stores asking for the “bag that was in that one TikTok.” It’s a full-circle effect: video to vibe to visit to value.
For retailers, this is a goldmine if you’re tracking where that foot traffic originates. A key point here is the importance of integrating your POS, ecommerce, and social data; if these are siloed, you’re flying blind.
For Ecommerce Operators: What This Means
Let’s talk tactics. If you run an ecommerce brand, luxury or not, here’s what TikTok is teaching us: Having a clear social strategy is essential for success on TikTok, guiding your approach to content creation, engagement, and brand positioning. Focus on creating content that resonates with TikTok audiences by leveraging trends, challenges, and authentic storytelling. Don’t just rely on influencers; producing your own content, such as branded videos and behind-the-scenes clips, can help boost your brand’s presence and connect directly with your audience.
1. Authenticity Beats Polish
Forget hyper-produced ads. On TikTok, creativity is a key driver of authentic content that resonates with audiences. Content that performs is real, messy, and human. Brands can engage with their audiences by creating content that feels real and relatable, think user-submitted videos, founder behind-the-scenes, and imperfect moments.
2. Your Creators Are Your Retailers
TikTok creators don’t just create, they convert. Influencers, including both celebrities and micro-influencers, play a crucial role in driving sales and building brand awareness through authentic partnerships. A shoutout from a mid-tier creator or influencer can outperform paid ads. Brands often collaborate with models as part of their influencer marketing strategies to enhance authenticity and visibility. Build relationships, not just sponsorships. Let them interpret your brand in their own voice.
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Get My Free 3PL RFP3. Your Product Needs a Narrative
“Luxury” used to be exclusivity, with brands offering exclusive products or experiences to create a sense of rarity and prestige. Now, it’s emotional resonance. Why does your product matter? What moment does it fit into? Even a premium brand needs storytelling that makes sense to both the brand and its audience. Content should create a sense of alignment with brand messaging, ensuring that every narrative feels authentic and contextually appropriate.
4. Cross-Platform Matters
Your TikTok may go viral, but if your site can’t support discovery, if your return policy is confusing, or if delivery is slow, you’ll lose them. Seamless post-click experience is everything, and maintaining consistent quality across every touchpoint is essential to building trust and meeting luxury consumer expectations.
TikTok Is a Platform, but It’s Also a Lens
TikTok isn’t just influencing marketing. It’s redefining what luxury means.
Today’s luxury consumers want:
- Transparency
- Accessibility (without dilution)
- Fun
- Community
The TikTok community and various niche communities on the platform play a crucial role in shaping brand engagement, as users actively participate in trends and content sharing. Luxury brands like Fenty Beauty and Gucci have embraced TikTok as a creative playground, not just a conversion funnel, and have built a huge following by showcasing their products and campaigns through innovative videos and live events. These brands have created unique experiences and content that resonate with the TikTok community, often providing examples and case studies, such as Gucci’s playful irreverence or Fenty’s authentic approach, to illustrate successful campaigns. For example, luxury watch brands like Breitling have used TikTok to watch their brand identity grow by incorporating watches into relatable, humorous content. A brand’s strategy and personality are key, allowing it to establish itself in its own right and stand out from traditional perceptions of luxury. To maintain engagement and visibility, brands are producing more videos based on fan interactions and trending topics, further strengthening their connection with diverse communities.
The result? Relevance. And often, revenue.
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See Scale JourneyEcommerce Is Now Entertainment
If you sell online and you’re not treating your content like entertainment, you’re already behind.
Yes, that includes you, even if you sell $600 loafers or heritage handbags. TikTok content works because it feels human. It feels like someone sharing a secret, not shouting a slogan.
The fashion industry is rapidly adapting to TikTok, using the platform to engage new audiences and stay culturally relevant. There is a growing interest in luxury brands on TikTok, with users increasingly drawn to content that highlights the unique value of designer goods compared to high-street fashion. For many consumers, purchasing luxury items is seen as an investment, both in terms of quality and long-term value.
That shift, from advertising to authenticity, is what’s catching luxury brands off guard… and transforming how younger consumers discover, trust, and buy.
Final Take: Don’t Chase Trends. Build Culture.
TikTok isn’t just about what’s trending today. It’s about how culture moves. What Gen Z values today, transparency, personality, and fluidity, will shape the next decade of ecommerce. Last year, TikTok saw explosive growth, becoming a key platform for audience acquisition and engagement.
Brands are leveraging viral trends, such as the #guccimodelchallenge, to boost engagement and visibility. Some luxury brands are taking a low-key approach to TikTok marketing, maintaining an understated presence that preserves brand elegance while still engaging authentically.
If you treat TikTok like another ad channel, you’ll miss it. If you treat it like a cultural mirror, you’ll find opportunities no spreadsheet could predict.
A notable example is Louis Vuitton’s appointment of Pharrell Williams as men’s creative director, which has driven cultural relevance and trendsetting through high-profile collaborations and influencer campaigns on TikTok.
The brands winning on TikTok aren’t just “on the app.” They’re in the community. They’re part of the conversation. And they’re learning that luxury doesn’t mean exclusivity anymore, it means belonging to the right story.
Frequently Asked Questions
Why are luxury brands using TikTok now?
Luxury brands are using TikTok to connect with Gen Z shoppers, build community trust, and promote products in a relatable, story-driven format that traditional advertising can’t replicate.
How does TikTok impact Gen Z’s trust in fashion brands?
Gen Z users trust peer reviews and creator content more than traditional marketing. TikTok fosters transparency and emotional connection, which drives trust and purchase behavior.
Can TikTok drive in-store traffic for luxury retailers?
Yes, TikTok is influencing both online sales and physical footfall. Shoppers often seek out products in-store after seeing them featured in trending TikTok videos.
What can ecommerce brands learn from luxury TikTok strategies?
Even non-luxury brands can benefit by embracing authenticity, creator partnerships, and a content-first approach that mirrors how Gen Z shops and consumes media.
Is TikTok a reliable platform for ecommerce growth?
Yes, when used strategically. With high engagement rates and influence over buyer decisions, TikTok can significantly boost visibility and sales, especially for brands targeting younger audiences.
Written By:
Jeremy Stewart
Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.
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Using Rithum to Optimize Multi-Channel Fulfillment and Dropshipping
In this article
9 minutes
- What Is Rithum?
- Rithum at a Glance
- Core Capabilities: Rithum Modules Explained
- Why Rithum Matters for Modern Commerce
- Use Case: A Dropshipping Brand Using Rithum
- Brands and Retailers Benefiting from Rithum
- Challenges to Be Aware Of
- How Rithum Compares to Other Platforms
- Where Cahoot Fits In
- Final Thoughts
- Frequently Asked Questions
Rithum isn’t just a rebrand, it’s a reinvention. Born from the merger of ChannelAdvisor, CommerceHub, and DSCO, Rithum is now one of the most powerful platforms for brands, retailers, and suppliers navigating the connected ecommerce world. According to Rithum’s CEO, the rebrand marks the beginning of a new era focused on innovation, growth, and supporting customers at every stage of their journey. With over $50 billion in GMV flowing through its pipelines annually, Rithum is quietly powering some of the world’s greatest brands, and making optimized consumer shopping journeys feel seamless.
If your ecommerce strategy includes multi-channel order fulfillment, dropshipping, and scalable growth, Rithum might be the platform you didn’t know you needed. Rithum supports businesses from the very beginning of their ecommerce journey, streamlining onboarding and initial setup to ensure a smooth start.
What Is Rithum?
Rithum is a multi-module platform focused on creating connected ecommerce experiences. It brings together marketing, commerce, delivery, and discovery into one scalable solution, helping brands and retailers operate more efficiently across marketplaces, DTC sites, retail media networks, and fulfillment channels. Rithum is designed to help launch, manage, and grow any type of ecommerce business, supporting the entire commerce operation from inventory management to multi-channel sales.
In other words, Rithum gives you the tools to grow sales, manage inventory, expand fulfillment, automate operations, and scale, all from a centralized command center. It’s built for the brands, retailers, and suppliers who want to stop juggling disconnected systems and finally integrate everything, supporting users every step of the way as they integrate their systems.
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I'm Interested in Saving Time and MoneyRithum at a Glance
- Annual GMV: $50+ billion
- Order Volume: Over 400 million orders processed per year
- Products Listed: 2.4 billion+ SKUs across 420+ channels
- Customer Base: 40,000+ companies, including major global retailers and niche DTC brands
- Trusted by the industry’s leading retailers and brands: Rithum supports the growth and profitability of retailers and brands across the ecommerce ecosystem.
- Legacy: Combines the capabilities of ChannelAdvisor, CommerceHub, DSCO, Cadeera, and more
That’s not just a lot of scale, it’s a lot of trust. Rithum powers commerce infrastructure for companies ranging from Fortune 500 retailers to fast-growing ecommerce entrepreneurs. As the industry’s most trusted commerce platform, Rithum delivers comprehensive solutions for retailers and brands navigating today’s market challenges.
Core Capabilities: Rithum Modules Explained
Rithum’s strength lies in its modular architecture. Businesses can tap into one, two, or all four of the core modules depending on their needs. Rithum supports businesses at every step, whether they choose a single module or implement the full suite, ensuring a smooth progression through each stage of their journey.
1. Commerce Solutions
This is the backbone. Rithum enables sellers to list products across hundreds of marketplaces, websites, social platforms, and retail sites, streamlining data sync, inventory updates, and pricing strategies.
Whether it’s Amazon, Walmart, Target Plus, Zalando, or your own Shopify site, Rithum’s software lets you manage product listings from one place. You can push updates to every sales channel instantly and reduce the lag that costs time, money, and customers.
2. Marketing Solutions
Rithum helps brands drive performance across paid search, social ads, and retail media networks. Think: Google Shopping, Meta Ads, Instacart, Criteo, Roundel, CitrusAd, you name it.
You can create optimized campaigns directly inside Rithum’s platform and integrate with leading analytics tools to tie ad spend to order fulfillment and margin impact. This means tighter control over ROAS, and faster decisions on what’s working and what isn’t.
3. Delivery Solutions
Order fulfillment isn’t just about speed, it’s about flexibility. Rithum’s delivery solutions automate routing based on inventory availability, warehouse proximity, shipping method, and cost-efficiency. This includes direct-to-consumer fulfillment, third-party logistics (3PL), and dropshipping.
Even better, Rithum integrates with Amazon MCF (Multi-Channel Fulfillment), letting brands use Amazon’s fulfillment infrastructure for non-Amazon orders. This creates margin advantages without the overhead of managing your own warehouses (though it’s quite a bit more expensive than outsourcing to 3PLs).
4. Discovery Solutions
Using AI and behavioral data, Rithum identifies top-performing suppliers, curates catalogs for buyers, and matches brands with new retail partners. This is especially powerful for B2B marketplaces and dropship networks looking to expand their assortments strategically.
The goal? Help suppliers work smarter, not harder, and give buyers access to high-margin, in-demand products without wasting time.
Why Rithum Matters for Modern Commerce
Let’s face it: managing ecommerce operations across 10+ sales channels is chaos without a platform like Rithum. The industry’s top brands use Rithum to automate, integrate, and grow. Here’s how:
1. Unified Inventory Management
Forget spreadsheets. Rithum provides real-time inventory visibility across all your selling channels. This helps reduce stockouts, improve fill rates, and prevent costly overselling.
2. Streamlined Order Fulfillment
Orders from Amazon, Shopify, Walmart, and your DTC site all route through a single order management system. Rithum auto-selects the best fulfillment method, be it internal warehouse, dropship partner, or Amazon MCF.
3. Data-Driven Marketing
Tie your product data to your ad performance. Rithum’s platform ensures that your marketing campaigns reflect inventory levels, promotions, seasonal trends, and shipping timelines.
4. Optimized Margins at Scale
One of the most underrated advantages of using Rithum is margin optimization. By automating fulfillment and identifying cost-saving delivery solutions, you increase profit per unit while maintaining fast delivery speeds.
5. Powerful Integrations
Rithum offers prebuilt connections with all major ecommerce platforms, marketplaces, and ERPs. Whether you’re using NetSuite, BigCommerce, Adobe Commerce, or Salesforce Commerce Cloud, Rithum plays nicely in the sandbox.
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Let’s walk through a simplified scenario:
1. A brand lists 10,000 SKUs using Rithum’s commerce solution.
2. Rithum syndicates those listings to Amazon, Walmart, and a DTC site.
3. Inventory levels sync across platforms in real-time.
4. Orders start coming in from all channels.
5. Rithum routes the orders to a mix of 3PL warehouses and dropship suppliers based on margin and speed.
6. The marketing team uses Rithum’s tools to launch ad campaigns based on best-sellers and restock timelines.
7. The operations team reviews delivery metrics and margin performance using Rithum’s dashboard.
8. The brand expands to a European marketplace, using Rithum’s localization features and supplier discovery module.
Rithum enables brands, retailers, and suppliers to work together seamlessly throughout the dropshipping process, ensuring efficient collaboration and smooth order fulfillment.
From listing to delivery, everything flows through one platform, Rithum, acting as the heartbeat of your dropshipping operation and keeping every part running smoothly.
Brands and Retailers Benefiting from Rithum
Retailers like Belk used Rithum to onboard over 500,000 SKUs in under 90 days, resulting in a 36% YoY increase in GMV. Similarly, brands like Superdry and Marks & Spencer have leaned on Rithum’s marketing automation and fulfillment capabilities to grow international sales and reduce channel friction.
For smaller companies, the appeal is just as strong. Rithum lets lean ecommerce teams punch above their weight, automating order fulfillment, syncing inventory, and scaling ad campaigns without adding headcount.
Challenges to Be Aware Of
No platform is perfect. Here are a few potential drawbacks:
- Complex Onboarding: Rithum’s capabilities are powerful, but not plug-and-play. Implementation often requires a dedicated team or integration partner.
- Cost Structure: After the ChannelAdvisor/CommerceHub merger, some users reported pricing increases of 4–7x. Smaller businesses may need to weigh the ROI carefully.
- Support Transition: With consolidation comes some turbulence. Support quality can vary depending on your plan, region, and internal rep.
Still, these challenges are manageable if you’re serious about long-term scale.
How Rithum Compares to Other Platforms
|
Platform
|
Strengths
|
Weaknesses
|
|---|---|---|
|
Rithum
|
Unified commerce, delivery, marketing
|
Complex onboarding, premium cost
|
|
Zentail
|
Easy setup, automation
|
Fewer marketplaces supported
|
|
Feedonomics
|
Robust product feed optimization
|
Limited fulfillment capabilities
|
|
Skubana
|
Inventory automation
|
Light on marketing tools
|
|
Cahoot
|
Fastest fulfillment via P2P network, most profitable reverse logistics
|
Primarily focused on shipping/logistics
|
Rithum is ideal for businesses seeking an end-to-end platform that supports everything from product discovery to last-mile delivery, especially if those businesses operate across multiple sales channels and want to optimize every piece of the puzzle.
To see how Rithum can help your business, schedule a demo to view the platform in action and learn more about its features and benefits.
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See Scale JourneyWhere Cahoot Fits In
For ecommerce sellers using Rithum but seeking faster, more cost-efficient fulfillment, Cahoot can be a perfect complement. While Rithum automates order routing and marketplace connections, Cahoot offers peer-to-peer fulfillment with 1-day ground delivery coverage across the U.S., at rates that beat most traditional 3PLs.
By integrating Cahoot into the Rithum workflow, brands can unlock smarter delivery solutions that drive higher margins and better customer experiences.
Final Thoughts
Rithum is more than just a new name; it’s a new rhythm for ecommerce. By merging legacy giants like ChannelAdvisor and CommerceHub, the Rithum platform is enabling connected ecommerce experiences at scale. With modules for commerce, marketing, delivery, and supplier discovery, it empowers brands, retailers, and suppliers to build lasting commerce businesses. Rithum also offers valuable resources to support teams and foster community within the ecommerce ecosystem.
It’s not for the faint of heart. Implementation takes planning. Costs can add up. But for ecommerce teams aiming to automate, scale, and integrate across channels, Rithum delivers.
Whether you’re launching a DTC brand, scaling a supplier network, or operating as one of the world’s greatest brands, Rithum helps create the infrastructure needed to move at speed, sell with confidence, and thrive in a fragmented retail world. Users love the seamless experience and impressive results they achieve with Rithum.
Frequently Asked Questions
What is Rithum, and what companies is it built from?
Rithum is a connected ecommerce platform formed by merging ChannelAdvisor, CommerceHub, DSCO, and other technology providers. It supports global brands, retailers, and suppliers.
How does Rithum improve order fulfillment and delivery solutions?
Rithum automates order routing across warehouses, dropship suppliers, and Amazon MCF, helping companies optimize shipping speed, cost, and customer satisfaction.
Which types of businesses should use Rithum?
Rithum is best suited for ecommerce brands, retailers, and suppliers managing sales across multiple marketplaces who need scalable software for fulfillment, marketing, and inventory.
Does Rithum offer tools for marketing and retail media?
Yes, Rithum’s marketing solutions connect directly to platforms like Google, Meta, Instacart, and retail media networks, helping businesses drive optimized consumer shopping journeys.
How does Rithum help brands expand globally?
Rithum’s commerce and discovery modules allow brands to manage listings across 420+ channels, onboard new suppliers, and localize product data to grow into new markets efficiently.
Written By:
Jeremy Stewart
Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.
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Faire: The Wholesale Marketplace Fueling B2B Retailers & Brands
In this article
9 minutes
- What Is Faire Marketplace?
- How Faire Works
- Why the Faire Marketplace Is Winning
- Inside the Faire Ecosystem
- Key Features That Power Faire Wholesale
- The Community Angle: Supporting Local Retailers
- How Faire Marketplace Stacks Up
- Challenges and Considerations
- Final Thoughts: A Smarter Way to Wholesale
- Frequently Asked Questions
If there’s one name shaking up the wholesale business right now, it’s Faire. This isn’t some old-school marketplace packed with overstock. Faire is modern, data-driven, and unapologetically pro-small business. The Faire marketplace connects brands with independent retailers, helps makers build loyal customer bases, and gives local retailers access to thousands of unique products at competitive wholesale prices, all without the traditional friction of trade shows, cold emails, or minimums that break the bank. The advantage for retailers and brands includes features like free returns, net payment terms, and exclusive access through membership programs, supporting small business success.
In short: Faire works because it flips the entire wholesale model on its head.
What Is Faire Marketplace?
At its core, Faire is an online wholesale marketplace built to help small businesses thrive. Retailers, particularly brick-and-mortar stores and local boutiques, use the platform to shop from hundreds of thousands of brands across the globe. These brands, in turn, use Faire to connect with eligible retailers in the U.S., Canada, Europe, and beyond, listing their products and managing everything from inventory to payment processing all in one place. Faire helps connect brands with local retailers through technology, building a community, and fostering relationships. The Faire site serves as the central hub for these transactions, and the website is the main online presence for wholesale activities.
Based in San Francisco, Faire was founded in 2017 with a bold mission: to level the playing field for local retailers and help independent brands find new audiences. Today, Faire wholesale is available in over 100 countries and supports a vibrant, rapidly growing ecosystem of retailers, makers, manufacturers, companies such as DTC brands and distributors, and wholesale suppliers. Faire connects brands and retailers around the world, creating a global community of buyers and sellers. The platform is also dedicated to supporting entrepreneurs and empowering small business owners with tools and market access.
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I'm Interested in Saving Time and MoneyHow Faire Works
The platform operates like a matchmaking service between retailers and brands. Sellers create product listings, upload inventory, and set their wholesale prices. Retailers browse through categories ranging from home décor to beauty to food and drink, and place opening orders often backed by net 60 payment terms and free returns. Upon sign-up, retailers may be given a certain amount of credit or spending allowance, and after verification, may access additional credit limits. To access net payment terms, retailers need to verify their eligibility by linking their bank, point-of-sale, or accounting systems.
Here’s what happens behind the scenes:
- Product discovery is powered by machine learning, personalizing suggestions for each retailer based on store size, prior purchases, region, and even customer reviews.
- Opening orders often come with low minimums or free returns, removing the risk of testing new inventory.
- Payment processing is handled seamlessly, with sellers getting paid up front and retailers enjoying flexible terms. Retailers can pay using various methods, including credit cards, PayPal, Apple Pay, and benefit from net 60 or pay later options.
- Commission fees vary. Faire charges 15% on new retailer orders + $10, while Direct Orders (from returning buyers) are commission-free. A sale triggers payment and commission fees for the platform.
- Analytics tools help brands manage performance and optimize their listings, marketing campaigns, and reorder rates, providing actionable insights to both brands and retailers.
For retailers or brands considering alternatives to traditional fulfillment models, leveraging an order fulfillment network can maximize profits and efficiency.
Why the Faire Marketplace Is Winning
So, what’s different about Faire compared to traditional wholesale platforms or in-person markets? It’s the blend of tech, transparency, and trust.
First, brands retain control. Sellers manage pricing, inventory, fulfillment, and advertising through a clean, intuitive dashboard. With full visibility into order data, account trends, and customer reviews, they can fine-tune their approach like any modern ecommerce business.
Second, retailers get access to premium goods at wholesale prices without committing to large order volumes. That opens doors for thousands of local stores who previously couldn’t meet MOQs or navigate import logistics.
Third, Faire supports growth on both sides. Through powerful tools like email marketing, Facebook ad integrations, inventory syncing, and sales analytics, brands can grow their business while building meaningful relationships with independent retailers. Everyone wins. Faire helps brands reach more customers and grow their sales.
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The numbers don’t lie:
- Over 100,000 brands now sell on Faire.
- Retailers have placed millions of orders from across Europe, Canada, and the U.S.
- In the UK alone, local retailers were offered 50% off first-time purchases and free delivery for eligible categories.
- Faire has raised over $1.29 billion in funding, giving it the backing to expand into more local communities and continue supporting small business growth.
And yes, Faire is one of Shopify‘s chosen partners, with a tight integration that helps Shopify sellers expand to wholesale with minimal friction.
Key Features That Power Faire Wholesale
Let’s break it down. These are the platform’s most compelling features for sellers and retailers:
1. Curated Product Listings by Category
Sellers categorize their items by vertical: apparel, wellness, home goods, kids, pets, and more. Retailers can filter by category, price, product type, margin, brand story, and more. The marketplace interface is designed to feel more like shopping a boutique than digging through bulk inventory.
2. Free Returns on Opening Orders
Risk is the biggest barrier for new buyers. Faire’s solution? Let retailers opt for free returns on opening orders, which removes the fear of testing unfamiliar brands. This is one of Faire’s most powerful conversion drivers and a huge incentive for local stores to experiment.
3. Real-Time Inventory and Order Management Tools
Brands can sync inventory with their own ecommerce store, receive alerts when stock is low, and auto-approve reorders from trusted accounts. Retailers benefit from instant updates on order status and fulfillment timelines.
4. Global Expansion with Localized Support
Sellers can target specific geographies like Canada or Europe with localized pricing, translations, and customer support. The platform handles currency conversions, tax calculations, and security. Faire’s San Francisco headquarters has expanded to offices in London, Amsterdam, and São Paulo.
5. Advertising and Marketing Tools
Using Faire’s built-in marketing suite, brands can create campaigns, retarget past buyers, and generate traffic from Facebook or Instagram directly from their dashboard. They can also opt into Faire’s promotional campaigns during key retail periods.
6. Direct Orders with No Commission Fees
Want to avoid platform commissions? Brands can invite existing wholesale buyers to their Faire storefront via a direct link, which lets both sides skip commission fees and still access Faire’s tools, tracking, and payment systems.
The Community Angle: Supporting Local Retailers
Faire isn’t just about wholesale, it’s about restoring the vibrancy of local shopping. By giving neighborhood retailers a chance to compete with big-box stores and letting consumers discover products that aren’t on Amazon or Walmart shelves, Faire helps communities thrive.
Independent retailers using the platform have reported higher margins, better product discovery, and faster turnaround than legacy wholesale options. From rural shopkeepers in Texas to boutique owners in Toronto, these small businesses now have global access without sacrificing their local flavor.
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Get My Free 3PL RFPHow Faire Marketplace Stacks Up
|
Feature
|
Faire Marketplace
|
Traditional Wholesale
|
|---|---|---|
|
Free Returns
|
Yes (on opening orders)
|
Rare
|
|
Commission-Free Sales
|
Yes (via Direct Orders)
|
No
|
|
Built-in Analytics Tools
|
Yes
|
No
|
|
Global Retailer Access
|
100+ countries
|
Limited
|
|
Low Order Minimums
|
Yes
|
Usually high
|
|
Facebook Ad Integration
|
Yes
|
No
|
|
Payment Processing
|
Automated, flexible payout options
|
Manual or delayed
|
Challenges and Considerations
It’s not all sunshine and margins. Sellers must:
- Optimize listings and metadata to rise above hundreds of thousands of other brands.
- Adapt to algorithm changes that affect visibility and conversion rates.
- Accept that commission fees and advertising costs, while lower than trade shows, still add up over time.
Still, the advantages: speed to market, flexibility, insight, and buyer reach, are massive. Faire offers a variety of services to enhance user experience, from support to marketing tools. Users can review their privacy or cookie settings at any time and manage preferences by visiting the appropriate settings pages.
Final Thoughts: A Smarter Way to Wholesale
Whether you’re a U.S. candle maker, a Canadian ceramicist, or a European skincare brand, Faire helps create a smarter wholesale business. And if you’re a retailer? This is the platform that finally gives small stores the tools to compete. Makers and retailers can join the Faire marketplace by signing up and completing the onboarding process.
By combining product discovery, inventory control, analytics tools, payment processing, marketing campaigns, and customer relationship features into one elegant interface, Faire Wholesale has redefined the future of retail and made the playing field just a little more fair. Brands are encouraged to explore both selling on Faire Marketplace and their own wholesale store to maximize reach and sales opportunities, considering the benefits and limitations of each selling channel.
Frequently Asked Questions
What is the Faire marketplace, and how does it work?
The Faire marketplace is an online wholesale platform that connects independent retailers with brands and makers, offering access to curated products at wholesale prices.
Who can sell on Faire, and what are the commission fees?
Brands and manufacturers can sell on Faire. The platform charges a 15% commission on new retailer orders and $10 per opening order, but returning buyer orders are commission-free via direct links.
Are there minimum order quantities for retailers on Faire?
Faire allows flexible opening orders, often with low or no minimums. Retailers can try new products with reduced risk, and most first orders come with free returns.
What kind of products and categories are available on Faire?
Faire offers hundreds of thousands of product listings across categories like home décor, beauty, wellness, fashion, food and beverage, and more; ideal for boutique-style shops.
Can international retailers use Faire wholesale?
Yes, Faire supports retailers in over 100 countries including Canada and Europe, with localized currency, shipping, and payment processing.
Written By:
Indy Pereira
Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.
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