Faire Exclusivity: Should You Take the Plunge?

Faire Exclusivity: Should Handmade Sellers Take the Plunge?

If you're a handmade seller on Faire, you may have come across the option to offer Faire Exclusivity to your retailers. But what does it mean, how does it work, and should you activate this feature for your business? Let's break it down, covering the benefits, potential issues, and everything you need to consider before making this decision.

What is Faire Exclusivity?

Faire Exclusivity allows you to grant a retailer exclusive rights to sell your products within a specific geographic area for a set period—365 days. This means you agree not to sell your items to other retailers in that region during the exclusivity term, making that store the go-to destination for your unique handmade goods.

• Exclusivity is available to brands and retailers in the UK, France, Australia, US and Canada.

• Please note that only brick & mortar retailers will be eligible to participate in the exclusivity program.

• Exclusivity replaced the Faire Protection or ZIP code Protection
  

Benefits of Faire Exclusivity

1. Build Stronger Relationships: Exclusivity can help foster a stronger bond with a retailer. When they know they’re the only ones carrying your products in their area, it builds trust and loyalty.
   

2. Increased Order Frequency: Retailers who have exclusivity are more likely to place larger orders upfront and reorder more frequently to maintain stock, knowing they have a unique offering.
   

3. Better Shelf Space: Retailers with exclusivity agreements might be more inclined to give your products prime shelf space, knowing they are the only store in the area to carry them.
   

4. Marketing Collaboration: With an exclusivity agreement, some retailers may be more willing to co-market your products, creating a win-win situation for both parties.
   

Potential Issues with Faire Exclusivity

1. Limited Reach: By granting exclusivity, you limit your ability to sell to other stores in that area, which could cap your sales growth in that region.
   

2. Dependence on One Retailer: If your exclusive retailer decides to stop carrying your products or doesn’t promote them well, you could lose potential sales and visibility in that market.
   

3. Missed Opportunities: Other stores in the same area might be interested in stocking your products, but you won’t be able to capitalize on those opportunities while under an exclusivity agreement.

Understanding Your Faire Exclusivity Area: What Handmade Sellers Need to Know

Your exclusivity area on Faire isn’t a fixed distance for everyone—it’s determined by Faire based on your location and the density of other retailers nearby. Typically, this exclusivity zone ranges between 0.3 to 1.2 miles (0.5 to 2 km). You can preview your specific exclusivity area directly on the Exclusivity landing page in your Faire account.

How to Set Up an Exclusivity Agreement on Faire AS A Sellers

If you’re interested in securing an exclusivity agreement with buyers that have opted into the program on Faire, follow these simple steps:

1. Set Up Exclusivity: Go to Customers > Exclusivity.

2. Set Up Minimum Spend: This can be updated as you add new retailers in your dashboard.
   

By following these steps, you can easily secure exclusive selling rights for popular retailers in your area and stand out from the competition.

How to Determine Your Minimum Spend for Exclusivity on Faire: What We Do

When setting a minimum spend for exclusivity agreements on Faire, it’s crucial to strike a balance that incentivizes retailers while ensuring it’s profitable for your brand. Here’s our quick formula:

• Evaluate Average Order Value (AOV): We look at our AOV from past wholesale orders and use it as a baseline.
  

• Factor in Exclusivity Value: Consider the exclusivity’s worth—how much value does having a single retailer in a region bring to your brand?
  

• Cover Costs and Ensure Profit: Ensure the minimum covers all costs, including production, labor, packaging, and shipping, with enough margin to be worthwhile.
  

• Set and Test: We start with a minimum that reflects these considerations and adjust based on retailer response and market conditions. This strategy helps us set a fair minimum spend that benefits both our handmade brand and our retail partners.
  

How I Determined Our Minimum for Exclusivity Agreements

To set a minimum spend for exclusivity on Faire, we analyzed the average annual spend of our top-tier, VIP customers and added 50% to this average to ensure that the exclusivity agreement not only covers our costs but also adds significant value. This approach allows us to encourage commitment from retailers while making sure our exclusivity terms are worthwhile for our handmade business.

What Happens if a Retailer Activates Exclusivity and Doesn’t Pay?

Here's the kicker: If a retailer activates the exclusivity feature but doesn't follow through with an order within their exclusivity term, you might be left hanging. However, at the end of the exclusivity term, Faire charges the retailer a fee for not placing an order. While you won’t be out of luck, the delay could impact your sales and inventory planning.

Considering Faire Exclusivity? Remember, it’s like a handmade marriage! Make sure you and your retailer are both committed to making it work.

Best Practices: Managing Faire Exclusivity

Since there isn't currently a way to automatically remind retailers about their exclusivity commitment, it’s up to you to take proactive steps. Here’s what we do:

1. Send a Friendly Reminder at 90 Days: About three months before the exclusivity period ends, send a gentle check-in email to remind the retailer of their commitment and encourage them to reorder. This gives them enough time to assess their stock levels and place a new order if needed.
   

2. Regular Check-ins: Make a habit of regular, friendly check-ins with your exclusive retailers. This builds rapport and keeps your products top of mind.
   

3. Evaluate Exclusivity Opportunities Carefully: Not every store needs or should have exclusivity. Consider factors like the store’s location, customer base, and order volume before agreeing to exclusivity.
   

Should You Add Faire Exclusivity? What to Consider

Before diving into exclusivity agreements, think about the following:

• Your Growth Strategy: If you’re looking to expand quickly in a particular region, exclusivity might not be for you.
  

• The Retailer’s Track Record: Are they a reliable partner who places consistent orders and promotes your products well?
  

• Your Capacity: Can you afford to be locked into an agreement with a single retailer in that area? Consider if this fits with your overall sales strategy.
  

Question for You:

Have you tried offering exclusivity on Faire? What’s been your experience—benefit or bust? Share your thoughts and tips below!

By weighing the benefits and potential pitfalls, you can make an informed decision on whether Faire Exclusivity is the right move for your handmade business. Happy selling! 🌿