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Commissions typically range from 25%-33% depending on whether in addition to providing eCommerce functionality Farfetch manages shipping, returns or other services. With more pricing control brands can offer more merchandise at full price, avoiding markdowns which are thought to negatively impact a luxury brand’s image.
In many of these arrangements the retailer hosts the marketplace and instead of buying the inventory from the brand the brand is responsible for it and a retailer like Marks & Spencer pays a commission on every sale. 57% of Amazon’s unit sales in come from third party sellers on its platform. Do you like this content?
Shein, another ultra fast fashion retailer, adds between 500 to 2,000 new items on its website every day. Shein is vertically integrated allowing it to go from design to shipping in as little as three days. Commenting on the growth of Shein TechCrunch wrote : “[Shein] manufactures in China as many apparel retailers do.
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