Does Faire's Net 60 mean I wait 60 days to get paid?

No. Net 60 is a term Faire grants eligible retailers. North American brands are paid once the shipment is in transit, on their chosen schedule of next day, 30 days or 60 days, with processing fees of 3.5%, 2.4% or 1.9% of the order subtotal plus $0.30 per order. The platform carries the risk of retailers paying late.

Can I book Faire income at the deposit amount?

It isn't a good idea. Deposits are already net of commission, new customer fees, processing fees and damage deductions, and they include shipping reimbursements. Book revenue at the gross wholesale amount with platform fees as expenses, and clear a Receivable from Faire account order by order so margins are right and the books tie to the gross 1099-K.

Which year does a Faire order shipped in December and paid in January belong to?

On the accrual method, the year it shipped, with a year-end receivable. A small business on the cash method generally counts it when the payout arrives, which can be the next year. Faire's 1099-K counts orders shipped and paid out in the year, so such orders appear on the next year's form.

When does Faire issue a 1099-K and what is on it?

Faire issues a 1099-K to U.S. brands with more than $20,000 of Faire sales and more than 200 orders in a calendar year; electronic forms are usually available before January 31. It shows sales plus shipping for orders shipped and paid out that year, before commission and fees, separately for each account.

Faire Net 60 payouts: bookkeeping and the 1099-K

Faire's Net 60 is a payment term for retailers, not a 60-day wait for brands. North American brands are paid once a shipment is in transit, on the schedule they choose: next day, 30 days or 60 days, with processing fees of 3.5%, 2.4% or 1.9% of the order subtotal plus $0.30 per order. Book revenue at the gross wholesale amount with commission and fees as expenses. Your 1099-K counts orders shipped and paid out during the year, including shipping, so it rarely matches the books without a reconciliation.

How the money moves

Under Faire's Brand Terms of Service effective September 15, 2026 (U.S. and Canada), Faire accepts orders on the brand's behalf and the sales contract is between brand and retailer. Faire decides, on the brand's behalf, whether a retailer pays on shipment or gets 60 days of interest-free trade credit. On your side, Faire's payment processor (generally Stripe in the U.S. and Canada) pays you on your chosen payout schedule. Late payment and default by retailers is the platform's risk, priced into the processing fee.

The payout clock starts when the carrier scans the shipment. Faire initiates the transfer about the next business day after the designated payout date, and funds usually land within 1 to 2 business days. Ship slowly and you get paid slowly.

The payout formula is order subtotal plus shipping reimbursement, minus commission, minus the processing fee. The subtotal is total wholesale value less brand-funded discounts; shipping reimbursement applies only when you ship on your own, and Ship with Faire label costs never enter your payout.

Which payout speed?

Next day costs 3.5% + $0.30 and is fastest. 30 days costs 2.4% + $0.30. 60 days costs 1.9% + $0.30 and is cheapest. Brands outside North America generally get two options: next day at 3% of subtotal plus shipping, or 30 days with no fee.

The 1.6-point gap between next day and 60 days buys you money about 59 days sooner, roughly 10% a year annualized. If your credit line costs less than that, the slower payout and cheaper borrowing usually win; if you're short on cash for inventory and can't borrow, take the faster one. You can change the option any time for future orders.

How to book it

Use a Faire clearing account. When an order ships, debit Receivable from Faire and credit sales at the gross wholesale amount. Record the commission, any new customer fee ($10 on a North American brand's first order with a retailer) and the processing fee as expenses, crediting the receivable. Clear the balance when the payout lands. Every order then ties out, and the year-end balance is what has shipped but not yet been paid.

Why not book the deposits? Net deposits blend revenue with platform fees, understate gross margin and hide a large expense line. More importantly, the 1099-K is gross, and books kept on deposits can't explain the difference if the IRS asks.

Special deductions. Opening-order returns are Faire's risk and aren't deducted, so your revenue doesn't change. Damage and missing-item deductions reduce revenue or are booked as losses. Brand-funded discounts reduce revenue. Shipping reimbursements for self-shipped orders can be booked as income with postage as expense, or netted, as long as you're consistent.

Which year is the income?

Accrual method. Revenue is recognized when goods ship and title passes. A December shipment paid in January is this year's revenue and a year-end receivable.

Cash method. Businesses with average gross receipts of $32,000,000 or less over the prior 3 years (the 2026 threshold) can generally use the cash method and recognize income when received. With 30- or 60-day payouts, late-December shipments arrive next year and so does the income. Because the payout option is chosen before the order and the money isn't available to you until the payout date, this generally isn't constructive receipt; but money that is already available to you can't be pushed into next year by declining to take it.

Inventory doesn't follow cash. Under either method, unsold goods are inventory, not current-year expenses. If you built stock for wholesale, count it at year-end.

Why the 1099-K won't match

Faire's Help Center says it issues a 1099-K to U.S. brands with more than $20,000 of Faire sales and more than 200 orders in a calendar year, and files it with the IRS and the relevant states. The amount is sales plus shipping for orders shipped and paid out in the year, before commission and fees. A brand with several accounts is tested, and receives forms, account by account.

Differences usually come from four places: cross-year orders (last December's shipments paid this January are on this year's form, this December's paid next January aren't); shipping (the 1099-K includes it, your books may net it); damage deductions; and multiple accounts.

Example (hypothetical numbers, to show the method): a brand's 2026 Faire order subtotals total $200,000, with $9,000 of shipping reimbursements and $1,500 of damage deductions; $15,000 shipped this December is paid next January (shipping $600), and $10,000 shipped last December was paid this January (shipping $400). The estimated 1099-K is $200,000 + $9,000 − $15,600 + $10,400 = $203,800. Accrual book revenue is $200,000 − $1,500 + $9,000 = $207,500. The $3,700 gap is cross-year orders and damage deductions. Keep that reconciliation in the year's tax file and an IRS matching notice is a quick answer.

Match your W-9 to IRS records. Faire checks name and TIN in real time. Sole proprietors and disregarded single-member LLCs enter the owner's own name with an SSN or the owner's EIN; corporations, partnerships and LLCs taxed as corporations use the entity name and EIN. A wrong name puts the 1099-K under the wrong taxpayer.

The takeaway

Net 60 is a perk for retailers and, for you, a choice about how much to pay for faster cash. Book gross, keep platform fees separate, clear a Faire receivable order by order, and the 1099-K becomes a simple reconciliation.

Commission, sales tax and entity choice are in the Faire wholesale guide; reconciling 1099-Ks across platforms is in the 1099-K guide. To get the books straight in one pass, book a free 15-minute call or add WeChat YCLUSA.