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FAQs

Expert

What are the basic elements buyers look for when choosing product?

First and foremost, Fair Trade buyers need to ensure that the products they buy are produced ethically. Refer to the Fair Trade Federation’s list of criteria as a checklist. Once it is determined that a product meets Fair Trade criteria, avoid relying on a charitable mission to sell product, because buyers look for products that will sell on their own merits. Buyers consider the following factors when choosing product:

Quality & Consistency: Products need to meet high quality standards. For example, with textiles, stitching should be consistent, corners not frayed, and designs should meet with the buyer’s expectations.
Presentation: Buyers love when products are packaged well, because it’s easier for them to merchandise and sell. Presentation includes the packaging, labeling, and how it will display on the store shelf. Just beware of using excess packaging in this need-to-go-green world we live in. And don’t forget to include story cards with your products. Buyers (and consumers) can’t get enough of this simple yet effective way of communicating what makes your products special.
In style: Buyers pay heed to current trends, so you should too. Since crafts play an important role in keeping cultures and traditions alive, Fair Trade buyers are drawn to products that apply traditional production techniques and materials to current trends.
Sizing: Products like clothing and bedding should be sized according to industry standards of the consumer market you are targeting.
Whether a product is unique and/or fills a niche: The best way to identify product niches is to simply ask buyers if there are items that they would like to offer that they have been unable to find. Do your homework to avoid producing products that have already saturated the Fair Trade market, and to ensure that your products are uniquely different.
Price feasible: When determining price, first you need to factor in the cost of materials and labor, but then what? You still need to determine whether the price is feasible. Remember, every product has a maximum retail price it will fetch. Investigate the pricing of similar products, and find out what the average retail markup is in the market you are trying to penetrate. If your pricing seems high, consider altering materials or design to bring your costs down.
Dependability of Seller: Buyers and Sellers develop a relationship over time. If a seller is able to deliver on their promises, buyers are more likely to re-order. It’s that simple.

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How do you determine the best product mix to have in the store?

Determining the best product mix for your store depends greatly on its location, what the neighboring businesses are selling, and who your target customer is. Not all Fair Trade retailers are serving the same customer, so take the time to find out who your customer is. For instance, if your store is in a college area, products with lower price points for cost-conscious students may be the way to go. But if your store is in a vacation spot, tourists with money to spend and a list of gifts to bring home to loved ones may seek out pricier grabs.

Also important to consider is the product offerings of stores nearby. If there is a chocolate shop next door, perhaps go easy on stocking Fair Trade chocolate bars. A stationery store across the street may make you think twice about offering eighteen different calendars. Ultimately, understanding who your customers and business neighbors are will help determine the best product mix for your store, so do what you can to get to know them.

Next, the key to developing a product mix that works well for your store is to test the waters and analyze results on a regular basis. By referring to sales reports, you can discover what's selling and what's not, and determine whether there are certain price points that do particularly well. You can identify what time of year to stock up on certain items and identify popular product categories. Once you’ve tried different mixes and analyzed their success, act on the information you’ve gained. It is right under your nose, so take the time to sniff it out, and you’ll be one step closer to a product mix that works well for your store.

General

What is fair trade?

Fair trade is a system of exchange that seeks to create greater equity and partnership in international trading system by

Creating Opportunities for Economically and Socially Marginalized Producers
Developing Transparent and Accountable Relationships
Building Capacity
Promoting Fair Trade
Paying Promptly and Fairly
Supporting Safe and Empowering Working Conditions
Ensuring the Rights of Children
Cultivating Environmental Stewardship
Respecting Cultural Identity

By approaching development as a whole process (rather than just a fair price), fair trade organizations cultivate partnerships with their suppliers and contribute to the development of communities. Fair trade is not about charity; it uses a fairer system of exchange to empower producers and to create sustainable, positive change.

What does that really mean?

First and foremost, fair trade is about offering great products to the public. Consumers can choose fairly traded clothing, coffee, food, furniture, home décor, house wares, jewelry, tea, toys, personal accessories, and many other products.

Second, fair trade is about keeping prices affordable for consumers while returning a higher amount of the producers. This relationship is made by possible, because fair traders typically work directly with artisans and farmers, cutting out the middle men who increase the price at each level – enabling retail products to remain competitively priced in respect to their conventional counterparts, while more fairly compensating producers.

Finally, fair trade makes a tremendous impact on communities. Children’s school fees are paid; nutritional needs met; health care costs are covered; the poor, especially women, are empowered; the environmental impact of production, sourcing, and transport is mitigated to the fullest extent possible. Such an impact is created, because fair trade approaches development as a holistic process.

What kinds of goods are available?

Consumers can choose fairly traded clothing, coffee, food, furniture, home décor, house wares, tea, toys, personal accessories, and many other products. For more information on the range of products available, please see the items offered by FTF members.

Do fair trade goods cost more than comparable non-fair trade goods?

Generally, fairly traded items do not cost more than other goods, because fair trade organizations work directly with producers - cutting out anywhere from 3 - 10 middlemen who raise the price along the way in conventional trading. The cost to consumers typically remains the same while a higher percentage of the price is returned to the artisans and farmers who made the product.

Does fair trade make a difference?

In producer communities, schools are built, wells constructed, children attend school, and other signs clearly indicate that the income generated by fair trade sales positively resonate in a community. In intangible ways, one can note the impact of fair trade, as well. Cultural techniques are revived; women become valued members of their societies; alternative production methods preserve biodiversity; small and medium sized enterprises in the developing world increase their capacity. Through this and other evidence we know that lives have been positively changed, because of fair trade.

How does one know if a particular product or business is fair trade?

There are two types of organizations involved in fair trade. Some certify specific commodities, regardless of to whom they are sold; others screen organizations for their full commitment to fair trade, regardless of what products they sell. Member organizations of the Fair Trade Federation usually display the FTF logo on their business materials, are listed on the FTF website, and may have the words “Member of the Fair Trade Federation” on their products. The Fairtrade Labelling Organization and its North American affiliates, TransFair USA and TransFair Canada, allow their label on the products they have certified.

How long has fair trade been in North America?

The fair trade movement in North America began in 1946 when Edna Ruth Byler, a volunteer with the Mennonite Central Committee, began importing crafts from Puerto Rico and selling them out of her car. For more information on the history of fair trade, please see the Explore Fair Trade Section.

What can individuals do to support fair trade?

Individuals can support fair trade by educating their communities about the fair trade options available, by bringing fairly traded items into their home, office, faith community, school, or other group, and by asking for products from fair trade organizations in their local stores. For more information, please see the Get Involved section. back to top

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