What is a reseller?
A reseller is a business partner who purchases products from a vendor and then sells them on to their own customers. Resellers are a vital intermediary between vendors and customers, offering vendors the ability to scale their production and meet customers right where they’re already shopping or looking for similar products. These resellers often make their profit through the margin between their purchase price from the vendor and the price at which they sell to their customers.
Typically, resellers build relationships with customers and have a deep understanding of their specific needs. Resellers operate in many different industries, including retail, manufacturing, software, and more. They may add value to the products or services they sell by offering additional services, customization, technical support, or bundling of complementary products.
Resellers could look like:
- Electronics retailers that sell smartphones, laptops, and other accessories
- Online app stores that distribute third-party mobile apps and digital services
- Healthcare equipment suppliers that sell medical devices and supplies to local clinics
- Telecom resellers that offer telecommunications services, such as VoIP, to small businesses
- Industrial resellers that provide machinery and equipment to construction companies
- Value-added resellers (VARs) that offer software bundled with customization services
- Grocery stores that sell a wide range of food and household products from different manufacturers
- Travel agencies that offer bundled flights, hotels, and vacation packages to travelers
- Independent bookstores that create a curated selection of books to readers
- Clothing boutiques that sell designer apparel and fashion accessories straight to consumers
These types of partners don’t just facilitate sales. They serve as an extended sales force for your business, helping you reach wider markets and a new customer base. Additionally, resellers often possess industry-specific expertise, so they can provide tailored solutions and support to customers.
For consumers, resellers make it more convenient to purchase products from multiple manufacturers in one place. They can also offer competitive pricing and negotiate deals on behalf of customers due to their buying power and relationships with manufacturers.
Resellers are a critical part of any indirect sales strategy. They play a crucial role in streamlining distribution efforts, improving market reach, enhancing customer experience, and growing your business.