Wholesale Marketplaces: Which Has the Lowest Fees?
So, you've got a fantastic product, a robust inventory, and a burning desire to scale your business. You're ready to dive into the exciting world of wholesale, but one question keeps nagging at you: "Which wholesale marketplace has the lowest fees?" It's a smart question, one that can significantly impact your bottom line. You're not just looking for a place to list your goods; you're seeking a strategic partner that helps you grow without eating away at your hard-earned profits.
This article is your guide, your trusted mentor in navigating the complex landscape of wholesale marketplaces. We'll cut through the noise, demystify fee structures, and highlight platforms that prioritize your financial success. By the end, you'll have a clear roadmap to choosing the ideal marketplace, not just based on fees, but on a holistic understanding of what truly drives wholesale success.
The Wholesale Marketplace Landscape: Why Fees Matter
Imagine you've crafted a beautiful ceramic mug. You've poured your heart into its design, sourced ethical materials, and perfected your firing technique. Now, you want to sell it in bulk to boutique gift shops across the country. Wholesale marketplaces are the digital bridges connecting you, the maker, with these eager retailers. They offer exposure, streamline ordering, and often handle payment processing, acting as your virtual sales team.
However, like any service, these platforms come at a cost. These costs, often in the form of fees, are not just line items on an invoice; they're direct deductions from your profit margin. If you sell a mug for $10 wholesale and the marketplace charges a 15% commission, that's $1.50 per mug straight out of your pocket. Over hundreds or thousands of mugs, these seemingly small percentages quickly compound into significant figures. Understanding and minimizing these fees is paramount because every dollar saved on marketplace costs is a dollar that stays in your business, ready for reinvestment, innovation, or even a well-deserved personal reward. It's about optimizing your profit strategy from the ground up, ensuring your growth isn't just about volume, but about sustainable, healthy margins.
Understanding Marketplace Fee Structures
Before we dive into specific platforms, let's dissect the common types of fees you'll encounter. Think of this as understanding the different ingredients in a recipe; knowing what each one does helps you appreciate the final dish and, more importantly, modify it to your taste.
Commission Fees
This is perhaps the most common and often the largest fee you'll face. Commission fees are a percentage of each sale you make through the marketplace. It's like paying a sales agent for every deal they close. For example, if a marketplace charges a 10% commission and you sell $1,000 worth of products, they take $100.
The tricky part with commissions is that they can vary wildly. Some platforms might charge a higher percentage for initial orders from new retailers and then drop it for reorders, incentivizing you to build long-term relationships. Others might have different commission rates based on product categories or even your sales volume. It's crucial to look beyond the headline percentage and understand the nuances of how and when these commissions are applied. This fee directly impacts your per-unit profitability, so a clear understanding here is non-negotiable.
Subscription Fees
Unlike commission fees, which are tied to sales, subscription fees are fixed, recurring payments you make to simply be a member of the marketplace. This could be a monthly or annual charge, regardless of how much you sell. Think of it like a gym membership – you pay a flat fee for access to the facilities, whether you go every day or once a month.
Some marketplaces offer tiered subscriptions, with higher tiers providing additional features like enhanced analytics, priority support, or more extensive marketing tools. While a subscription fee can feel like an upfront cost, it can be advantageous if you anticipate high sales volume, as it often means lower or no commission fees per transaction. The key is to weigh the fixed cost against your projected sales and the value of the features included. For a seller with consistent, high-volume orders, a subscription model can often lead to lower overall costs compared to a purely commission-based structure.
Listing Fees
Listing fees are charges incurred for simply placing your products on the marketplace. Some platforms might charge per product listing, while others might charge for a certain number of listings within a package. It's less common than commission or subscription fees in modern wholesale marketplaces but still exists, particularly on older or more niche platforms.
Imagine you're setting up a booth at a trade show. Some shows charge you a flat fee just to have a space, regardless of whether you sell anything. Listing fees operate similarly. While they might seem minor individually, they can quickly add up if you have a vast catalog of products, especially if your products have a slow sales cycle. It's important to check if these fees are one-time or recurring, and if they apply per SKU or per product type. A marketplace with high listing fees might deter sellers with diverse or constantly evolving product lines.
Payment Processing Fees
When a retailer places an order and pays for it through the marketplace, there's almost always a payment processing fee involved. This isn't typically charged by the marketplace itself, but by the payment gateway (like Stripe, PayPal, or a direct bank transfer service) that facilitates the transaction. However, some marketplaces might bundle this into their overall fees or present it as a separate line item.
These fees are usually a combination of a small fixed amount (e.g., $0.30) plus a percentage of the transaction value (e.g., 2.9%). While unavoidable in most online transactions, it's crucial to understand who bears this cost – you, the buyer, or if it's absorbed by the marketplace. When comparing platforms, look closely at how these fees are handled. A marketplace that helps you minimize these costs, or at least clearly presents them, is helping you maintain your margins.
Additional Service Fees (Marketing, Storage, etc.)
Beyond the core fees, some marketplaces offer optional services that come with their own price tags. These can include:
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Marketing & Promotion: Featured listings, email blast inclusions, or advertising within the platform.
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Fulfillment & Storage: If the marketplace offers warehousing or shipping services, similar to Amazon FBA.
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Advanced Analytics: Deeper insights into buyer behavior, sales trends, and market data.
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Customer Support Tiers: Expedited or personalized support beyond standard offerings.
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Dropshipping Capabilities: Fees associated with integrating dropshipping logistics.
These "add-ons" can be incredibly valuable, offering leverage and saving you time, but they are never free. It's essential to scrutinize which of these services genuinely add value to your specific business model and which are simply nice-to-haves that could inflate your costs unnecessarily. Always evaluate the ROI of any additional service fee.
Our Methodology for Evaluating Wholesale Marketplaces
When we talk about the "best" wholesale marketplaces, we're not just throwing darts at a board. Our evaluation is systematic, much like a meticulous chef tasting ingredients before crafting a gourmet meal. We look beyond the surface, delving into the intricacies that truly impact your success as a wholesale seller.
Factors Beyond Just Fees
While fees are undeniably a major focus of this guide, reducing your costs to zero isn't the sole definition of success. A marketplace with rock-bottom fees but no buyers interested in your products is just an empty storefront. We consider a broader spectrum of factors that contribute to a healthy, profitable wholesale operation:
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Buyer Quality and Quantity: Are there enough relevant buyers on the platform? Do they represent your target audience (e.g., small boutiques, large retailers, specific niche stores)? A platform teeming with buyers who aren't interested in your category is less valuable than a smaller, highly targeted platform.
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Niche Specialization: Does the marketplace cater to specific industries or product types? Selling artisanal candles on a platform primarily for industrial equipment might have low fees, but it's unlikely to yield sales.
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Platform Features & Tools: Beyond basic listing, what tools does the marketplace offer? Think about order management, inventory sync, analytics, marketing tools, and CRM capabilities. A robust toolset can save you immense time and operational costs.
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Ease of Use & User Experience: How intuitive is the platform for both sellers and buyers? A clunky interface can deter potential retailers and make your own administrative tasks a headache.
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Seller Support: What kind of support does the marketplace offer? Is it responsive, knowledgeable, and helpful? When you encounter issues, quick and effective support can be invaluable.
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Payment Terms & Payout Speed: How quickly do you receive your funds after a sale? Do they offer net 30, net 60 terms for buyers, and how does that affect your cash flow?
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Brand Reputation & Trust: Is the marketplace well-regarded in the industry? A reputable platform lends credibility to your brand and instills confidence in buyers.
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Marketing & Exposure Opportunities: Does the marketplace actively promote its sellers? Are there opportunities for featured listings, email blasts, or collaborative marketing campaigns? More exposure means more potential sales.
By weighing these factors alongside the fee structures, we aim to provide a balanced perspective, guiding you towards marketplaces that offer not just low fees, but also a strong foundation for sustainable wholesale growth. It's about finding the sweet spot where cost-effectiveness meets genuine opportunity.
The Lowest-Fee Wholesale Marketplaces for Sellers
Now, let's get down to business. Based on our comprehensive methodology, factoring in both direct costs and the value proposition, here are some of the wholesale marketplaces that stand out for their seller-friendly fee structures.
1. BoxNCase
BoxNCase has carved out a niche as a B2B wholesale marketplace with a clear focus on efficiency and cost-effectiveness for sellers, particularly those dealing in consumer goods and groceries. They position themselves as a platform where sellers can list products without the burden of typical high commissions.
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Fee Structure: BoxNCase is notable for its 0% commission on most sales. This is a significant draw for sellers looking to maximize their profit margins. While they may have different fee structures for specific programs or advanced features, their core promise revolves around minimal transactional costs for sellers. They aim to recoup costs primarily through buyer-side fees or by offering value-added services.
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Seller Benefits: The primary benefit here is undeniable: more of your sales revenue stays in your pocket. This allows for more aggressive pricing strategies, increased marketing budget, or simply healthier profit margins. They also provide tools for managing orders and inventory.
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Considerations: While the 0% commission is highly attractive, sellers should thoroughly review any terms and conditions regarding payment processing, potential subscription tiers for advanced features, or specific categories that might operate under different models. It's crucial to understand their overall business model and how they sustain a 0% commission structure for sellers.
2. Faire
Faire has rapidly grown to become one of the most prominent wholesale marketplaces, particularly for independent brands and small businesses. They've built a strong reputation for connecting artisans and makers with a vast network of retailers.
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Fee Structure: Faire's fee structure has evolved, but generally involves a commission model. For first orders from new retailers (those you didn't refer to Faire), they typically charge 15% commission. For reorders from existing retailers (or retailers you brought to Faire through a direct link), the commission drops significantly, often to 0% on referred buyers and a lower percentage on subsequent orders from non-referred buyers. They also have a payment processing fee, usually around 2.9% + $0.30 per transaction.
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Seller Benefits: Faire offers incredibly powerful tools for attracting new buyers, including marketing support, simplified order management, and robust analytics. Their payment terms for retailers (often net 60) are guaranteed for sellers, meaning you get paid upfront even if the retailer takes longer to pay Faire. This cash flow benefit is a huge draw for many small businesses.
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Considerations: The 15% commission on first orders can feel steep, but it's often justified by the exposure and new buyer acquisition Faire facilitates. The key is to leverage their platform to build relationships that lead to reorders, where your commission drops. Their model heavily incentivizes bringing your existing retailers onto the platform, as those sales incur 0% commission.
3. Handshake
Handshake, powered by Shopify, is designed for brands looking to sell wholesale to retailers. It's particularly appealing for businesses already integrated into the Shopify ecosystem.
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Fee Structure: Handshake stands out by offering 0% commission on sales made through their platform. They do not charge listing fees, monthly subscription fees, or commission on orders. Their model primarily aims to drive more businesses onto Shopify's e-commerce platform.
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Seller Benefits: The lack of commission is a massive advantage, allowing sellers to retain 100% of their wholesale revenue (minus standard payment processing fees). For existing Shopify users, the integration is seamless, streamlining inventory management and order fulfillment. They also offer tools to create custom pricing tiers and manage buyer relationships.
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Considerations: While the 0% commission is excellent, sellers need to consider that they will still incur Shopify's own platform fees if they use Shopify as their primary e-commerce store. Handshake's primary goal is to enhance the Shopify ecosystem, so its effectiveness might be more pronounced for sellers already using or considering Shopify. The buyer network might also be smaller compared to more established general marketplaces.
4. Abound
Abound positions itself as a curated marketplace connecting small businesses with unique products to independent retailers. They emphasize handmade, artisanal, and small-batch goods.
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Fee Structure: Abound typically charges a 15% commission on a new retailer's first order and 8% on reorders. This structure is similar to Faire's in incentivizing long-term relationships. They also apply a standard payment processing fee of 2.9% + $0.30 per transaction.
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Seller Benefits: Abound offers free marketing and promotional opportunities, dedicated account support, and ensures sellers are paid within 1-5 business days, even if retailers take longer (offering net 60 terms to buyers). Their focus on curated, high-quality goods can attract a discerning buyer base looking for unique products.
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Considerations: Like Faire, the initial commission rate is higher, but it decreases significantly for repeat business. Sellers should evaluate if their product line aligns with Abound's curated aesthetic and if the platform's buyer base is a good fit for their brand. Building repeat customer relationships is key to maximizing profitability on Abound.
5. Tundra
Tundra has made a name for itself by aggressively pursuing a "no commission, no fees" model, striving to be the most cost-effective wholesale platform for sellers.
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Fee Structure: Tundra boldly claims 0% commission, 0% subscription fees, and 0% listing fees for sellers. Their business model primarily relies on charging buyers for certain services, expedited shipping, or by offering payment processing solutions where they take a small cut.
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Seller Benefits: The absolute lack of seller fees is Tundra's most compelling advantage. This allows sellers to offer competitive pricing and retain the entirety of their wholesale revenue (excluding standard payment processing fees, which are often absorbed or passed to the buyer in various ways). They offer tools for order management, international shipping, and product discovery.
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Considerations: While the 0% seller fee is fantastic, it's essential to understand how Tundra attracts buyers and what their experience is like. Sometimes, a "free" platform for sellers might mean that buyers face higher costs or fewer benefits, potentially impacting buyer loyalty. It's worth researching the buyer experience on Tundra to ensure it aligns with your long-term goals.
6. RangeMe
RangeMe operates differently from typical wholesale marketplaces. It's primarily a product discovery platform designed to connect suppliers with retail buyers at large retail chains and distributors. It's less about direct transactions and more about getting your product in front of major buyers.
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Fee Structure: RangeMe operates on a subscription model for suppliers. They offer a basic free profile, but to get your products noticed by larger retailers, access deeper insights, and get priority consideration, you'll need to subscribe to their premium plans (RangeMe Premium). These are monthly or annual fees, not commission-based.
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Seller Benefits: For brands aspiring to get into major retailers like Walmart, Target, or Whole Foods, RangeMe offers unparalleled access. It streamlines the submission process and ensures your products are seen by the right decision-makers. It's a powerful tool for brand exposure at a larger scale.
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Considerations: RangeMe is not a transaction platform; it's a discovery platform. You won't make direct sales on RangeMe. Your investment is in gaining visibility and making connections that could lead to large wholesale orders elsewhere. The subscription cost needs to be weighed against the potential for securing significant retail partnerships. It's a strategic investment rather than a direct sales channel.
7. Boutsy
Boutsy positions itself as a B2B wholesale marketplace with a strong emphasis on community and supporting small businesses, particularly in fashion, home decor, and gifts.
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Fee Structure: Boutsy has historically maintained a seller-friendly fee structure, often advertising 0% commission on sales for basic seller accounts. They might have nominal listing fees or offer premium features through a subscription model, but their core offering is designed to be low-cost for transactions.
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Seller Benefits: The absence of sales commissions is a major draw. Boutsy also focuses on providing tools for managing orders, interacting with buyers, and gaining exposure within their curated community. They aim to foster direct relationships between brands and retailers.
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Considerations: As with other low-commission platforms, it's crucial to verify the exact terms of their 0% commission – does it apply to all sales, or are there caveats? The size of their buyer network compared to larger players like Faire might be smaller, so evaluating the relevance of their buyer base to your product niche is important.
8. Wish Wholesale
Wish Wholesale is an extension of the popular consumer marketplace, Wish, leveraging its existing infrastructure and supplier network for B2B transactions. It primarily caters to bulk buyers looking for competitive prices, often for general merchandise.
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Fee Structure: Wish Wholesale aims for a low-cost model, often with minimal or 0% commission on sales for sellers. Their fee structure can be less transparent for sellers, often involving a simple deduction from the payout amount that covers their operational costs. They typically focus on high-volume, low-margin goods.
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Seller Benefits: The potential to reach a vast network of existing Wish users (who are now looking to buy in bulk) is a key advantage. It's particularly good for sellers with large inventories of general consumer goods, electronics, and accessories who can offer highly competitive wholesale pricing.
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Considerations: The "Wish" brand is often associated with extremely low prices and, at times, lower perceived quality on the consumer side. Sellers need to consider if this association aligns with their brand image. The platform's focus on price competitiveness means margins might be tighter. Transparency on fees can sometimes be less clear compared to platforms specializing purely in wholesale.
Other Noteworthy Wholesale Marketplaces (with higher or varied fees)
While our focus is on the lowest-fee options, it's important to acknowledge other significant players in the wholesale landscape. These platforms might have higher or more varied fee structures, but they bring other benefits to the table, such as immense reach, specialized niches, or robust services. Sometimes, a higher fee is justified by the value delivered.
Amazon Business
Amazon Business is the B2B arm of the e-commerce giant. It leverages Amazon's vast infrastructure, buyer base, and logistics capabilities to serve businesses.
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Fee Structure: Amazon Business typically operates under referral fees (commissions) similar to the consumer marketplace, but with specific B2B categories and features. These commissions generally range from 8% to 15% or higher, depending on the product category. Sellers also incur FBA fees if they use Amazon's fulfillment services, and potentially subscription fees for professional seller accounts.
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Seller Benefits: Unparalleled reach to millions of businesses, access to Amazon's robust fulfillment network (FBA), and the trust associated with the Amazon brand. They offer advanced tools for B2B pricing, quantity discounts, and tax exemptions.
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Considerations: The fees can be substantial, especially when combining referral fees with FBA costs. It's highly competitive, and standing out requires a strong strategy. For many, the sheer volume and operational efficiency offered by Amazon Business justify the costs, especially for sellers with scalable operations.
Alibaba
Alibaba is a global behemoth in B2B e-commerce, primarily connecting manufacturers and wholesalers from Asia (especially China) with buyers worldwide. It's known for massive bulk orders and sourcing.
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Fee Structure: Alibaba's fee structure for suppliers (what they call "Gold Suppliers") is primarily subscription-based, with various tiers offering different levels of features and exposure. These annual subscriptions can range from a few thousand to tens of thousands of dollars. They also have transaction fees for secure payment services and optional marketing/advertising costs.
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Seller Benefits: Access to a global buyer base, particularly for sourcing and large-volume orders. It's a powerhouse for manufacturers and distributors looking to penetrate international markets. Features include extensive product showcasing, buyer-seller communication tools, and trade assurance.
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Considerations: The upfront subscription cost for Gold Supplier status is a significant investment. The platform is best suited for large-scale operations and those comfortable with international trade logistics. The competition is intense, and building trust can take time. It's generally not ideal for small, independent artisans looking for boutique retailers.
Wholesale Central
Wholesale Central is a directory-style wholesale marketplace that connects wholesale buyers with suppliers across a wide range of categories.
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Fee Structure: Wholesale Central primarily operates on a subscription model for suppliers to be listed in their directory and to showcase products. They do not typically charge commissions on sales, as transactions usually occur directly between the buyer and seller off-platform. They offer various listing packages, which are annual fees.
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Seller Benefits: It acts as a lead generation tool, putting your brand in front of active wholesale buyers. Buyers browse categories and contact sellers directly, allowing you to control the sales process and avoid transaction commissions.
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Considerations: As a directory, it requires more active follow-up from the seller to convert leads into sales. It doesn't offer the integrated order management or payment processing of full-service marketplaces. The effectiveness largely depends on the quality of your listing and your direct sales capabilities.
Beyond Fees: What Else Should You Consider When Choosing a Wholesale Marketplace?
Remember our analogy of the chef? Ingredients (fees) are crucial, but the cooking technique, the presentation, and the dining experience also matter. Similarly, when selecting a wholesale marketplace, looking beyond fees is vital for long-term success.
Target Audience and Niche Fit
This is arguably the most critical factor after fees. Who are your ideal wholesale buyers? Are they small, independent boutiques? Large retail chains? Online-only stores? Each marketplace attracts a different demographic.
Imagine you sell unique, handmade jewelry. Listing on a marketplace known for industrial supplies, even if it has 0% fees, won't yield results. Conversely, a platform like Faire or Abound, which caters to curated, artisanal goods, would be a perfect fit. Do your buyers prioritize price, uniqueness, sustainability, or brand recognition? The marketplace you choose should align with your brand's ethos and the type of retailers you want to attract. A perfect niche fit means higher conversion rates and a more engaged audience, which can easily outweigh slightly higher fees.
Ease of Use and Seller Tools
Your time is money. A clunky, unintuitive platform can be a massive drain on your resources. Look for marketplaces that offer:
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Simple Onboarding: Easy setup for your store and product listings.
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Intuitive Order Management: Clear dashboards for tracking orders, managing inventory, and communicating with buyers.
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Integration Capabilities: Can it sync with your existing e-commerce platform (like Shopify) or accounting software?
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Analytics & Reporting: Tools that provide insights into your sales, buyer behavior, and popular products.
A marketplace that streamlines your operations and provides powerful tools allows you to focus on what you do best: creating and selling great products, rather than battling with complex software.
Marketing and Exposure Opportunities
Getting your products listed is one thing; getting them seen by buyers is another. Consider what marketing and exposure opportunities each marketplace offers:
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Featured Listings: Can you pay (or earn) to have your products highlighted?
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Email Marketing: Do they promote sellers through newsletters to their buyer base?
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Social Media Promotion: Do they feature sellers on their social channels?
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Seasonal Campaigns: Do they run themed events or collections where your products could be included?
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PR Opportunities: Do they connect sellers with media for coverage?
A platform that actively promotes its sellers acts as an extension of your marketing team, driving more traffic and potential sales your way.
Customer Support
You're running a business, and things will inevitably go wrong or require clarification. Robust, responsive customer support from the marketplace is invaluable.
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Availability: Are they available during your working hours?
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Channels: Do they offer email, phone, or live chat support?
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Responsiveness: How quickly do they address issues?
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Knowledge: Are their support agents knowledgeable about seller-specific problems?
Good customer support saves you stress, time, and potential financial losses when an issue arises. Don't underestimate its importance.
Payment Terms and Logistics
How a marketplace handles payments and logistics can significantly impact your cash flow and operational workload.
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Seller Payout Speed: How quickly do you receive your money after a sale? Some marketplaces guarantee quick payouts even if they offer net 30/60 terms to buyers. This is a huge benefit for cash flow.
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Buyer Payment Terms: Do they offer flexible payment terms (like net 30, net 60) to retailers? This can be an attractive feature for buyers but can sometimes delay your direct payment if not handled by the marketplace.
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Shipping & Fulfillment: Does the marketplace integrate with shipping carriers, provide shipping labels, or even offer fulfillment services (like FBA for Amazon Business)?
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International Capabilities: If you're looking to sell globally, does the platform support international payments, shipping, and customs documentation?
These logistical considerations can make or break your wholesale efficiency. A marketplace that simplifies these aspects allows you to scale more easily.
Making the Right Choice: A Personalized Approach
Choosing a wholesale marketplace isn't a one-size-fits-all decision. What works brilliantly for a large manufacturer might be a disaster for a small artisan. Your choice should be deeply personal, tailored to your specific business, products, and goals.
Ask Yourself These Questions
To help you narrow down the options and make an informed decision, sit down and honestly answer these questions:
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What is my average wholesale order value? This helps you evaluate if a fixed subscription fee or a percentage-based commission makes more sense. Low order values might favor a percentage, while high order values might favor a subscription or 0% commission model.
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How many different products (SKUs) do I have? If you have a vast catalog, platforms with high listing fees could be prohibitive.
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What is my ideal profit margin per product? Knowing this helps you understand how much of a commission you can comfortably absorb without becoming unprofitable.
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Who is my target wholesale buyer (type of retailer, size, niche)? Does the marketplace attract these buyers?
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How important is upfront cash flow to my business? If crucial, prioritize platforms that guarantee quick payouts, even with net terms for buyers.
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Am I willing to actively market my products on the platform, or do I need the marketplace to do most of the heavy lifting? This impacts whether a higher commission for exposure is justified.
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Do I have the operational capacity to handle direct orders, or do I need integrated tools and fulfillment support?
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What is my comfort level with technology and integrating new platforms?
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What is my budget for marketplace fees (both recurring and transactional)?
By rigorously answering these questions, you'll gain clarity on your priorities and needs, making the decision process much more focused and effective. You're not just picking a platform; you're choosing a strategic partner.
Final Thoughts on Navigating Wholesale Marketplace Fees
The world of wholesale marketplaces is dynamic, with new platforms emerging and existing ones evolving their fee structures constantly. Your mission, as a savvy business owner, is to approach this landscape with an informed and strategic mindset.
Remember, the "lowest fees" aren't always the "best value." A marketplace that charges a reasonable commission but delivers a steady stream of high-quality, relevant buyers, robust tools, and excellent support will almost always be more profitable in the long run than a "free" platform where your products gather digital dust.
Think of it as an investment. You're investing your time, your products, and a portion of your revenue into a platform that promises to connect you with growth opportunities. Do your homework, read the fine print, engage with the communities, and don't be afraid to test the waters with one or two platforms before fully committing. Your wholesale journey is a marathon, not a sprint, and choosing the right partners along the way will determine how far and how profitably you run.