Stop Paying the 15% 'Loyalty Tax': The Wholesale Retention Strategy Beyond Faire
You have a growing brand, and you know wholesale is the key to scaling. You’re likely researching platforms like Faire, AirGoods, and their competitors to find new retailers. That’s smart. These marketplaces are essential. But in your search for acquisition, are you overlooking the path to maximum profit?
This guide breaks down the two distinct paths to wholesale growth, exposing the fundamental flaw in relying solely on a third-party platform (like a marketplace), and showing you how to automate your most profitable sales: reorders - at 0% commission.
The Two Paths to Wholesale Growth
Deep Dive: Why Marketplaces Kill Your Profit Margin
The excitement of a new wholesale order can quickly fade when you look at the final payout summary. The reality of commission-based marketplaces is that they are structurally incentivized to prioritize acquisition over your retention.
The True Cost of a Marketplace Order
The excitement of a new wholesale order can quickly fade when you look at the final payout summary. The reality of commission-based marketplaces is that they are structurally incentivized to prioritize acquisition over your retention.
For example, a $500 reorder with a 15% commission means that you pay $75. If you're a high-volume brand, that single fee quickly turns into tens of thousands of dollars paid out to a platform that did zero sales work to secure that repeat order.
The Retention Problem is a Profit Problem
Marketplaces are designed to feed retailers new brands because they earn the highest fee on the first order. This results in:
Retailer Hopping: Retailers are constantly encouraged to try new brands to unlock first-time buyer perks (free shipping, net terms). This means your initial customer acquisition cost remains high.
The "Black Box": You are barred from building a direct, high-touch relationship. You cannot get the retailer’s email or phone number, making it nearly impossible to market new products or follow up without violating terms.
The 15% Tax on Loyalty: Every time a loyal retailer places a profitable reorder, you pay a steep, passive 15% tax on your hard-earned relationship.
Comparing the Top Faire Alternatives (and the Shared Flaw)
When comparing the leading alternatives, brands often find that the same core flaw persists: a focus on the transactional moment, not the long-term relationship.
The key takeaway is that the perfect platform isn't the one with the best acquisition features; it's the one with the best retention features because retailers are arguably busier than regular “DTC” customers, you need to be doing more to bring them back and simplify the ordering process for them.
The Vanik Solution: Automating 0% Commission Reorders
If marketplaces are your outsourced acquisition rep, Vanik is your own built-in Retention Engine.
Vanik turns your existing website into a wholesale sales machine, focusing on securing those high-profit reorders at a guaranteed 0% commission. We solve the administrative burden that leads to missed reorder opportunities.
Vanik’s Unique Value Proposition: The Wholesale Retention Engine
Smart Reorder Reminders (Stop Guessing, Start Selling)
How it Works: Vanik seamlessly integrates with your commerce platform (Shopify, etc.) to ingest every retailer’s order history.
The Difference: We analyze their purchase patterns and inventory burn rate to automatically trigger personalized, perfectly timed follow-up emails right when they are most likely to reorder.
The Result: Brands (like Sound Coffee) using Vanik report seeing the number of reorders increase by over 45%.
Two-Click Reorder Checkout (DTC-Level Convenience)
The Pain Point: Retailers don’t want to log in, search for a past order, and manually rebuild a cart.
The Vanik Solution: We send the retailer a personalized link that takes them to a dynamic landing page with their last order ready to go. They can adjust quantities and check out in as little as two clicks.
The Result: Saves your team 20+ hours a month on manual email invoicing and speeds up the reorder cycle, translating to faster cash flow.
Own the Relationship (and the Profit)
Because Vanik drives retailers to reorder directly through your existing e-commerce storefront, you keep the relationship and 100% of the sale (minus standard payment processing fees).
Your brand retains full control over pricing, data, and communication, all while paying a predictable fee, not a punitive commission.
Final Verdict: The Dual-Strategy for Maximum Profit
Stop thinking of wholesale growth as an either/or decision. The most successful brands in 2025 leverage a Dual-Strategy that optimizes for both acquisition and profit:
Use Marketplaces (Faire, AirGoods) for Discovery: Leverage their marketing dollars and retailer incentives to acquire the initial customer. Always push new prospects to order through your Faire Direct link to secure your first 0% commission order.
Use Vanik for customers that you own: Once the first order is fulfilled, switch that retailer into your Vanik system. Let our Retention Engine handle all the automated, profitable reorder reminders and the seamless checkout experience, ensuring that every subsequent sale is a 0% commission sale for your brand.
It is time to take control of your customer relationships and stop paying a premium for a service your team should be automating. Ready to stop paying up to 25% commission on your best customers?
See how Vanik helps brands increase their revenue per retailer by over 40% by setting up time to chat with us today.