A business-use buyer is a business that purchases wholesale goods for its own operations rather than for resale. A boutique hotel buying robes and minibar goods, a restaurant buying glassware and specialty ingredients, a wellness studio buying skincare for treatments, an office buying employee gift kits — all are business-use buyers. Faire uses this label for eligible businesses buying products for business use in its business-use buyer program. The operating need is broader than any one marketplace program.
The distinction matters for the purchasing purpose and tax documentation. Faire describes how applicable taxes are handled in its business-use tax guidance. Product use, category and jurisdiction determine treatment; buying wholesale alone does not create an exemption.
Quick answers
What is a business-use buyer? A business buying wholesale for operational consumption — supplies, amenities, ingredients, décor, equipment consumed in running the business — rather than inventory for resale. The purchase is an operating expense (or a COGS input, for a restaurant's ingredients), not merchandise.
How is a business-use buyer different from a wholesale (resale) buyer? A resale buyer plans to sell the goods onward; a business-use buyer needs them for operations. The same café can buy retail merchandise and cleaning supplies. Ingredients, packaging and mixed-use purchases need their own classification rather than an automatic tax conclusion from the business label.
Do business-use buyers pay sales tax on wholesale purchases? Use the marketplace's current rules and the applicable jurisdiction's treatment for the actual item and use. Do not apply a resale certificate to all purchases merely because the business also sells merchandise.
Can a restaurant be a business-use buyer on Faire? Yes. Restaurants, cafés, and bars are named categories in Faire's business-use launch, buying specialty ingredients, ceramics, glassware, and linens. Brands retain approval rights and order minimums. What that covers — and what it doesn't — is broken down in