What You Need to Know About Tundra and Wholesale Co-Op
Updated March 2024
In June 2023, after 6 years of operations, Tundra, one of the largest online wholesale marketplaces at the time, shuttered its online marketplace. Tundra’s email announcement made some big waves by announcing their intention to file a lawsuit against Faire, while simultaneously promoting their new online wholesale business, Wholesale Co-Op. In the whirlwind that followed, Wholesale Co-Op went belly-up at the end of January 2024. This article reviews the details on both Tundra and Wholesale Co-Op.
A Quick Summary On Tundra and Wholesale Co-Op
Tundra was an online wholesale marketplace that many small brands used to sell to stores. It operated from 2017 until 2023. Tundra is now completely closed.
Tundra’s founders opened a wholesale buying platform called Wholesale Co-Op that operated from 2022 to 2024. But Wholesale Co-Op is now closed as well.
Curious about the history of Tundra and Wholesale Co-Op? Read on…
What was Tundra?
Tundra was founded in 2017, making it an elder statesman of the marketplace world. It was a wholesale marketplace -- just like Faire -- with some important differences. The founders claimed their goal in setting up Tundra was to solve the problem of wholesale for small and medium-sized businesses more broadly, not for makers (or small brands) specifically. There were pros and cons to this but the first thing that many noted about the site was the range of products and the presence of large brands like Mattel, Burts Beeswax, Moleskine, and Mrs. Meyer's. There were many general-use products (think: spiral notebooks, pet accessories, bulk boxes of Nerds candy, etc.)
Tundra got their start as a venture-backed private company, raising $12 million in their initial fundraising efforts. At its peak, Tundra was reported to have over 25,000 buyers and 1 million products listed. They made their money via two things: shipping charges and the sale of pay pay-per-click advertising to brands.
How Did Tundra Work?
Tundra was a well known wholesale marketplace that had zero fees and commissions. Instead, their income streams were supplied through things like shipping, insurance, prepaid taxes and via brands willing to pay for exposure. They were well suited to makers who could afford to spend money to make money. Unfortunately, for small brands, the competition was high with approximately 25,000 brands on the site at any given time, making it a constant cycle of having to pay out to see profits.
Tundra’s Closing and Lawsuit Against Faire
In the Spring of 2023, Tundra surprised many by sending an email to users that they would be closing their virtual doors in June of that same year. At which time they encouraged users to apply for their wholesale platform, Wholesale Co-Op, and filed a lawsuit against Faire, alleging Faire had gained a 90% market share or monopoly over online wholesale marketplaces for independent retailers in an ‘unlawful manner.’ Essentially, outside the acceptable route of offering a superior product, better pricing, or more attractive terms and conditions. On February 13, 2024 Tundra’s lawsuit against Faire was dismissed.
In the shutdown, some makers reported difficulty getting paid, and many were left in the lurch without other established wholesale avenues.
What was Wholesale Co-Op?
Wholesale Co-Op by Tundra was not a Wholesale Marketplace but a comparison platform similar to popular flight and hotel comparison websites like Kayak.com or Orbitz.com. It took information from various wholesale marketplaces including; product cost, lead times, stock availability, minimum orders, and any website specific promotions, compiling it for retailers to easily compare. Enticing those retailers to purchase through the platform with cash-back offers.
Faire’s Lawsuit Against Tundra
The wholesale marketplaces Wholesale Co-Op claimed to be partnering with included Faire, Tundra, JuniperMarket, Mable, Handshake, Bulletin, FashionGo, Creoate, and OrangeShine. Faire did not take kindly to this business model that essentially scrubbed their website for information, broke their user agreement and interfered with their business ‘creating turmoil and customer confusion that Faire must respond to.’ In response, Faire locked the user accounts of those who utilized Wholesale Co-Op and sued Tundra for the misrepresentation. Tundra’s motion to dismiss Faire’s claim was Denied on December 8, 2023. Shortly after which, Tundra quietly shutdown Wholesale Co-Op on January 31, 2024.
When considering whether to invest time in an online wholesale marketplace, as always, it’s crucial to make sure that any marketplace you choose to use is a part of your wholesale plan, not your entire wholesale plan. The online wholesale marketplace has always been a competitive market, but it seems to be especially volatile these days. Want to learn more about how to prepare for the closure of a wholesale marketplace? Right this way. LINK to Wholesale Closure Article
How We Can Help You Grow Wholesale:
Wholesale In a Box
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Getting Started With Wholesale
A free 4-part email course covering the basics of how wholesale works, keys for success, whether it’s right for you, and how to get started. Sign up here.
The Wholesale Reset
Our free email course for more advanced brands — we’ll help you reset your approach to wholesale and take concrete steps forward to change your results. Sign up here.
More Free Resources on Faire, Tundra, And The Wholesale Marketplaces:
How to Compare and Choose The Right Wholesale Marketplace For You
Smart Ways to Use Faire to Grow Wholesale as a Maker — And Mistakes to Avoid
Creoate Wholesale Marketplace: Brand Tips + How It Compares To Faire
*At Wholesale In a Box we do not receive any commissions or compensation of any kind from Tundra or any other marketplace. All of our educational content is meant to support makers and small brands in making the right choices for them.