Creoate Wholesale Marketplace: Brand Tips + How It Compares to Faire
Updated May 2023
When considering wholesale marketplaces there is no shortage of options these days. Many of the marketplaces are similar but small differences can mean large impacts on makers and independent brands. In this article we review a newer wholesale marketplace, Creoate, and give you the information you need to decide if it’s a good fit for your wholesale strategy.
In this article, we’ll help you:
Understand what Creoate is and how it works.
Gain clarity on Creoate commissions, fees, rules, and protocols.
Weigh pros and cons and decide if Creoate is a good fit for you.
Compare Faire vs. Creoate for US and UK / European Sellers
Get tips on using Creoate in combination with direct outreach to stores.
What is Creoate?
Creoate is an online wholesale marketplace based in London, England that connects product companies with stores. It was founded in 2020, by Ashley Horn and Fahad Khan after their experience running a multi-brand store in London and looking for a way to sort the best products among all the options available online. Creoate grew quickly, backed by venture capital, and by 2021, more than 25,000 retailers had signed up, a number predicted to grow by 7,000 retailers per month.
In terms of structure, Creoate works like many wholesale marketplaces, with some key differences. First, unlike with Faire, there is no application required for brand sign up. The account is verified via email and makers set an address that they will ship from. Makers indicate their values and load their products onto the platform, then retailers are able to search products by category (you can only choose one per product), minimums, lead time or values. Values include eco friendly products, minority owned businesses, locally manufactured, vegan, handmade, etc. There is no storefront for brands. If a stockist likes an item, they cannot click anywhere to see the entire collection on offer by a maker. If a retailer clicks on an item, there may be a popup at the bottom of that page to be able to view 4 - 6 additional items by the maker.
Creoate claims to be the first UK marketplace for “independents,” but it is by far not the only wholesale marketplace option out there. In 2021, Faire branched out internationally. They have 150,000 retailers in Europe and have even branched to Australia. Other marketplaces like Abound, Tundra, Bulletin, and others are all options for small product companies who want to sell in this way. (You can find a comparison of the main wholesale marketplaces here.)
How does Creoate work for brands?
Commission and fees. It doesn’t cost anything for the maker to join or post their products, but Creoate takes a percentage from orders placed on the site. First time store orders have a 20% commission, while all reorders have a 15% commission. They offer 0% on orders from your existing stockists.
Existing Retailers. One way a maker can avoid paying commission on orders is to email an invitation to existing stockists via their Creoate account. It’s an incentive to get more stores ordering through the platform. They allow you to offer retailers free shipping, payment by invoice and special promotions like 10% off for new buyers to entice your existing stockists not on Creoate. Any orders from these accounts will be at a 0% commission forever. Meaning makers are not charged the standard 15% commission on re-orders.
Account setup. Once you’ve created and verified your account, you’ll upload your items onto the website. Creoate gives the option of a bulk upload service but you have to submit a request and it can take up to two working weeks to process.
Payout. Makers are paid 30 days following the delivery of the order. That means if the item is shipped overseas or across borders, that can delay your payout. Brands do have the ability to set country restrictions. Creoate handles all payments to you and from the stockists. You do not have to produce an invoice.
Communication with stockists. Makers are required to message stores through Creoate’s messaging feature and don’t have access to store information directly. Makers must reply to messages within 24 hours or risk a drop in their store ranking.
Brand ranking. As a brand, your ranking algorithm is boosted when you pay for marketing/advertisements. Store reviews affect ranking and rankings drop if the brand is late shipping an item or responding to messages.
Reviews. Makers cannot reply to reviews. They may only send a message to retailers who have purchased from them previously.
Wholesale minimums / markups. Unlike Faire, there are no set wholesale minimums or specific wholesale markups. You set your wholesale minimums. They can be set per product and/or for your entire store at your discretion.
Discounts. You may set a store discount if desired and choose the minimum amount at which that discount is applied. Discounting a single or selection of products is not an option.
Shipping. Creoate handles shipping costs, meaning wholesalers do not have to factor shipping into their wholesale costs. They book their shipping and collection via their platform and when an order is received, Creoate sends a shipping label to print. Sellers receive guidelines on shipping sizes and weights. Note: If you do not conform to the specifications, you will be charged the difference, not Creoate and not the stockist. Unlike Faire, sellers are not able to be reimbursed for shipping supplies and handling (up to $15) so that cost will need to be factored into the price for Creoate users.
Taxes, duties and fees. Creoate does not calculate or collect taxes, duties, surcharges, royalty fees, etc. So you must know, properly calculate, and incorporate these items into your costs.
Pros and cons of Creoate for handmade lines
Pros of using Creoate:
Easy to use and easy to set up.
Makers can gain stockists that they may have not reached out to on their own, potentially expanding into new countries.
You set your wholesale minimums and lead time.
The first time store commission is 20% which is lower than Faire’s 25%, and there is 0% commission for orders with existing stockists.
You don’t have to pay shipping, as long as you stay within shipping guidelines.
You can amend an order within 72 hours.
Cons of using Creoate:
Commission rates are quite high and are charged on every wholesale order, for every store, for the lifetime of that store relationship.
Sellers don’t have a storefront on Creoate and personalizing yourself and expressing your brand is limited to searchable “values.”
Creoate’s ranking algorithm often shows shops with lower minimums. Your rankings can drop if you get a poor review, don’t fill an order in time or if you don’t respond to a message within 24 hours. And you cannot reply to customer reviews directly.
Your store accounts don’t “go with you” if you change wholesale marketplaces or Creoate changes or closes.
It is less easy to build personal connections with stores (local, or world wide) than it is if they order directly from you. Permitted messages are those communications necessary to complete an order or to respond to a customer service inquiry. So your update newsletters and relationship building is stunted.
Creoate’s website is reported as buggy and difficult for retailers to use.
Sellers don’t get paid until 30 days AFTER delivery and Creoate uses DHL to ship, which can be unreliable not only for tracking and delivery but for pickup as well.
Makers are responsible for paying, withholding, filing, and reporting all tax.
Creoate is funded by venture capital that has a lot of pressure to grow very quickly. In some cases, this means that they put their own growth and needs ahead of makers’ needs.
Makers have to check Creoate daily to ensure that they do not miss a message and its 24 hour response window.
Products cannot be listed in more than one category.
Faire vs. Creoate
Despite their similarities, there are some key differences between Faire and Creoate that are crucial for brands to know.
Commission. Faire’s commission for new orders is 25% (Updated in May 2023 to 15% + $10 fee) for new orders and 15% for reorders. Creoate’s is slightly higher at 20% for new orders and the same 15% for reorders.
Account Setup. Faire requires an application (with many brands not accepted) while Creoate only requires account validation for Sellers.
Getting Paid. Faire guarantees payout 30 days after an order is placed, and offers next day payment for a 3% fee (Updated in May 2023, Faire charges payment processing fees on all payouts and next day payment is 3.5% + $0.30). Meanwhile, Creoate’s policy is to pay 30 days after the order has been confirmed delivered and there is no early payout option.
Handling International Orders. Faire makes it easy to sell internationally by calculating estimated taxes, duties and fees. They require an HS Code (tariff code that states what an item is) from sellers and are offering free shipping and import duties for retailers that are members of their Insider club. Creoate offers free shipping with minimum orders but does not include the duties in their free shipping, this could deter foreign companies from ordering US products. Creoate puts the onus for calculating taxes, fees and duties on the seller.
Wholesale minimums. Faire has wholesale minimums and set markup requirements. Creoate allows sellers to set their own wholesale minimums and markups.
Duties, taxes and fees. Faire estimates these and puts them on the invoice. No additional configuring or math necessary. Creoate will only estimate these if you are VAT registered (Value Added Tax, an UK/ EU import tax). Creoate leaves the seller responsible for calculating fees, duties, taxes and producing paperwork required for import. If calculated incorrectly, the seller is left with the charges.
Resources. Faire has a multitude of articles for selling in foreign markets that provide thorough explanations on selling in foreign markets or restricting sales domestically. Creoate’s resources for selling in foreign markets are minimal and murky. They put the responsibility on the seller and their help chat feature has mixed reviews.
👋 Oh, hi! We’re the friendly team at Wholesale In a Box.
Our mission is to put wholesale growth back in your hands. 💪
We offer training + coaching that gives you total control of your wholesale growth. See how it works right over here.
Want free help for wholesale? Sign up for our beloved email course (called Grow Your Wholesale) here.
Things to consider when deciding whether to use Creoate
If you’re deciding whether to try Creoate to grow wholesale, especially as a handmade line, here are a few things to consider:
Make sure Creoate commissions will work for your business and products.
Creoate can be a way for makers to get exposure and branch into European markets, but with the high commission rates that never leave, monetarily it could be challenging. So, it is important to really dig into your pricing to make sure that the high commission rate is something you can handle before you get started on the platform.
Make sure that your finances can handle a delay in payments.
Not getting paid until 30 days after delivery confirmation means that it's possible to not receive payment for months. Make sure your finances can handle sending a large order and not receiving payment immediately. We have seen horror stories of sellers waiting 90 and even 180 days for payment.
Consider Creoate in the context of your overall business and wholesale strategy -- not as a “one stop shop” for wholesale.
It’s wise to view Creoate as one wholesale tool among many, rather than as the entirety of your wholesale strategy.
Be strategic about how you use Creoate.
We recommend using a balanced approach that includes direct outreach to new shops, cultivating relationships with your current stockists, and using the marketplaces wisely.
Consider Creoate as one marketplace option of several.
Creoate is newer to the wholesale marketplace field— but it’s far from the only option. Compare the marketplace options for your business and choose one or more that really fits your needs, prices, aesthetic, and goals.
Be thoughtful about what markets you’re ready to branch into.
If you’re a UK or EU brand, Creoate is likely a strong choice. If you are a US brand it may be less cumbersome if you choose to join Creoate, to restrict markets to the United States. This is because branching into European markets means getting knowledgeable and registering your business. There is no data available as to what percentage of Creoate retailers are US based, so this marketplace may or may not prove to be lucrative with the country restriction. If US brands choose not to restrict the countries, then they are putting themselves at the risk of shipments getting stuck in customs, paying the fees associated with the holding of their items and waiting to get paid. Worse, possibly never getting paid if the retailer sees a high VAT bill for their package, gets sticker shock and refuses to accept delivery.
What is Wholesale In a Box?
Wholesale In a Box is our comprehensive course on growing wholesale, for makers. It is a self-paced training that includes everything you need to grow wholesale efficiently, effectively, and in your control. We teach a method that helps makers take wholesale outreach into their own hands, through a balance of direct outreach to new shops, cultivating relationships with your current stockists, and using the marketplaces (like Faire or Creoate) wisely. One big section of our course is all about finding sustainable success on the marketplaces, considering their unique algorithms, guidelines, and terms of service. Plus, makers can choose to get wholesale coaching from us, by email, which is why many makers say that Wholesale In a Box made them “go pro” with their business, improving everything from their operations to their line sheet to their marketing.
Conclusion
Creoate is a new tool, and it has the potential to be powerful. But things like the payment policy and the inability to create and maintain relationships are all considerable red flags. The relationships that create the foundation of your business are the main asset you have -- and it’s wise to cultivate those relationships in ways that are balanced and sustainable. That may mean using several wholesale platforms and tools simultaneously, and strategically.
Let us know if you have other questions about Creoate or Wholesale In a Box! We’re happy to dig into your particular business goals and product line to help you explore the right strategy for you.
Looking for even more resources about Faire, Tundra, Abound, and the other wholesale marketplaces for makers? Here are some that might be helpful:
Smart Ways to Use Faire to Grow Wholesale as a Maker — And Mistakes to Avoid
How to Compare and Choose The Right Wholesale Marketplace For You
*At Wholesale In a Box we do not receive any commissions or compensation of any kind from Creoate, Faire or any other marketplace. All of our educational content is meant to support makers and small brands in making the right choices for them.