Shopify Inc (TSX:SH., NYSE:SHOP) announced on Wednesday that it is investing in Faire, a wholesale platform, in an agreement that would see the start-up adopt Shopify technology for its clients globally.
Shopify's director of product Aneeqa Khan said the partnership would make it easy for Shopify merchants to find wholesale buyers and enable retailers to source from Faire's network of brands, Reuters reported.
The media outlet also noted that Faire, which is valued at $12.59 billion, would become the recommended wholesale marketplace for Shopify merchants and would also give Faire’s existing sellers access to Shopify’s point of sale system.
The agreement will also allow Shopify to put a Faire-powered 'Stockist' map on its website so shoppers can see which stores near them carry that brand’s products.
Exact terms of the agreement with Shopify were not disclosed.
Faire stated that it works with more than 100,000 brands that have nearly 10 million products in total and connects independent retailers who are looking to carry more products in their stores with brands which are looking for more places to sell their items on a wholesale basis.
The company’s revenue comes from commission fees imposed on transactions completed on its platform.
Faire was founded in 2017 by a group of Square alumni.
Shares of Shopify rose 0.6% to US$51.81 in early Wednesday trading and have gained 45% year to date.
Contact Sean at sean@proactiveinvestors.com