Wednesday, January 19, 2022

B2B Wholesale Marketplaces - Stats from A Vendor

You think you're confused? We're all confused. It seems a few times a week my customers ask me if they should be buying our fair trade jewelry on this site or another. Or should they order direct at www.dunitz.com? They want to know how all these sites differ. Since I am not a buyer, I can't share with you how these sites operate from a buyer's perspective. I can share with you how they vary from a vendor's.

FAIRE is the market leader when it comes to B2B gift buying. Their site is the most sophisticated and their fees are the largest for vendors.  An opening order comes with a commission of 25%. Reorder commissions are 15%. Dunitz is on FAIRE. 

Technically FAIRE is the vendor. They collect money. And they pay us on the terms we agree upon with them.  FAIRE collects all resale tax information from buyers.

We choose to have all FAIRE orders paid out on Net 30. The other options for vendors is to be paid in 2 or 3 days at an additional cost of 3%.

If you can prove a relationship with a store (in the form of an invoice during the previous two years, or email communication, or registration on your back-end) FAIRE will remove the commission fee. One way to expedite this process is to upload your entire customer list to the FAIRE system. FAIRE says they don't use our lists for any reason other than to help prove prior relationships.

 

ABOUND seems to be #2 in order generation. It definitely is a smaller organization that has a more mom & pop feel about it. An opening order on ABOUND comes with a 15% commission. Reorder rate is 8%. Dunitz is on ABOUND.

Similar to Faire, ABOUND is the vendor. They collect money. And they pay us on the terms we agree upon with them.  ABOUND collects all resale tax information from buyers.

We choose to have all ABOUND orders paid out on Net 45, which really translates to Net 60. The other options for vendors is to be paid in 3 or 5 days. In this case, I believe vendors pay ABOUND higher commissions. 25% on first orders. 15% on reorders. If you're going to sell on ABOUND, double check this.

If you can prove a prior relationship with a store on ABOUND, they will wave the commissions.

 

 

MSA Marketplace is a proprietary B2B website only available to Museum Store Association members. MSA buyers can place orders on this site, which is operated by Brandwise. The marketplace collects orders. It is the responsibility of the vendor to ship, collect payment and obtain resale #s. (In our case we need to collect tax information for the State of California where we are based.)  Brandwise (on behalf of MSA Marketplace) sends us an invoice monthly to be paid of 3% of orders placed.  Vendors pay this 3% whether orders are shipped complete or not, or at all. This fee is split between Brandwise and MSA. Dunitz & Company is a proud member of MSA and our catalog is available to buyers on this portal.


FTF Marketplace is scheduled to launch in March 2022. The FTF Marketplace will be operated by Markettime. Since Dunitz & Company is a verified member, our catalog will be available on this portal. My understanding is that any bonafide wholesale buyer will be able to place orders on this B2B site. The benefit to them is they will know all vendors have been screened for their ethical business practices. Similar to MSA Marketplace, the FTF site will collect orders.  All processing, payment collections and tax data is the responsibility of the vendors featured on the site.  For this service, Markettime will bill 5% on orders written, whether they ship complete or not, or at all.  This fee will be split between Markettime and FTF. (BTW, Markettime recently purchased Brandwise. Sadly their systems currently are different. Translation: Vendors need to re-create completely new pages for each of these sites.)


Juniper is a new B2B marketplace that launched earlier this month. This site is the brainstorm of International Market Centers. That's the group that operates the home and gift shows in Las Vegas, Atlanta and High Point. Initially this portal was designed to promote the exhibitors and lease-holders at these shows. Now they are adding to their arsenal by pursuing other vendors. Yes, they are now pursuing us. Dunitz & Company over the years has exhibited at Las Vegas, Atlanta and High Point. Currently, not. 

Juniper's fee for collecting orders is 8% for those that do not exhibit at their shows. (It's 4% if you exhibit at their shows or lease showroom space in one of their buildings.)  There is no concession if a vendor has a prior relationship with a buyer. No matter what, any order collected on Juniper comes with the commission. Unlike MSA and FTF, the Juniper portal charges on orders actually shipped.  

Juniper does not collect resale numbers. It is the responsibility of the vendor to collect this information before shipping customers. For us, if we were to write an order for a store in California, we would need to collect this information in case of an audit from our State Board of Equalization.  (I confess, I'm adding this note to the blog so I don't forget this if and when Dunitz works with Juniper.)

Juniper is young and they are definitely working out some processing kinks so they can be competitive with sites like FAIRE and ABOUND that offer Net 60 payment terms for buyers.  Juniper Credit will launch soon.  What does that mean?  Juniper will take on the risk of payment on invoices for a fee. If a vendor wants to be paid in 2 days, or 30 days, they will pay 2.5% or 4.5% respectively.  Translation. For Dunitz & Company, assuming we agree to Net 30 terms as we do on FAIRE, Juniper will take a 10.5% fee on any order written for us on their site.  (3/2022 We just signed up and have been onboarded. The site is new and the process has been quite disorganized with “issues”. Staff is nice. So we will see.)

 

Tundra - Yes, here's another B2B site. Honestly, I have not researched this one completely.  My impression is my colleagues who have signed up to sell on Tundra have been less successful.  Tundra does not charge vendors commissions for collecting orders.  My understanding is a vendor must pay advertising fees to be seen by buyers that log in.  If you're reading this and you shop and/or buy on Tundra please let me know how it works for you. 





DUNITZ & COMPANY is our proprietary site we built so you can work with us directly. It is the easiest for us to manage. We can offer more options on our own site.  Managing all of the others is a bit cumbersome. Want to order a bunch of Starry Night earrings for your store? On our site you can.  On the other sites, we can only make "assortments" available. Managing special orders and back-orders is easily done when working direct. With restrictions on other sites, it is more difficult. We also have some items we offer with lower margins. Our Judaica Collection is an example. We can't afford to list these designs on FAIRE and pay 25% commission. We've also learned that with FAIRE and ABOUND, they expect orders to ship almost as quickly as they are received. We need to limit what we offer on these sites to the items we stock deep and can ship super quickly.

 

Do I think everyone, everywhere is creating a B2B buying website to snag a piece of the pie? Yes. At the end of they day, I'm thrilled to obtain new business where-ever it comes from.  It's like that old story of which credit card I prefer. Visa or Amex? Truth is it's all good. I like it all. I'm not going to eliminate one because they charge me a larger fee. Are some of these B2B sites easier to use than others? Yes. Might I prefer one over another? Yes. Am I happy to have business come in from any of them? Yes. The bottom line is no matter where you shop, I appreciate you shopping Dunitz & Company's fair trade jewelry.

Please share with me your experiences with these sites. I'd love to hear from you. And thank you for being our customer. -ND