Types of Resellers and Retailers

Resellers and Retailers are companies that purchase and store products, then sell them to earn the purpose of earning a profit. They can be found on the internet, through brick-and-mortar stores or both. They purchase from wholesalers and distributors, and then sell to consumers or other businesses. There are a myriad of resellers, however there are two types of resellers of dropshipping and private labeling. Private labeling is a practice where the reseller rebrands the product of a manufacturer by adding their own name, logo and packaging. This type of reselling occurs a lot in the tech industry in which a computer manufacturer may offer both their own hardware as well as third-party software or accessories.

Another kind of reselling involves bundling. Bundling happens when a reseller mixes similar products from different companies to make a package that is attractive. A reseller, for instance could purchase digital cameras, memory card and Photoshop Lightroom software made by various manufacturers to create a kit to help new users get started in digital photography.

Typically, retailers buy goods in bulk from wholesalers and distributors and then sell them at a higher cost to consumers. They also sell via online marketplaces like eBay and Amazon. Retailers http://resellerassociation.com/difference-between-a-retailer-and-reseller/ offer a variety of added value services, such as customization and technical support. They may also charge additional costs, such as handling and shipping costs. For example, Home Depot might charge more than Walmart for grills for barbecues because it has a physical store and can manage logistics, like distribution and storage.

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