reseller

A reseller is a business or individual that purchases goods or services from a producer or wholesaler in order to sell them to end customers. Resellers do not typically manufacture the products but may add value through marketing, installation, configuration, or after-sales support. Distributors, by contrast, buy in bulk from manufacturers and sell to retailers or resellers, handling logistics and credit; resellers sell directly to end users and own inventory and pricing.

Types include value-added resellers (VARs) who customize or integrate products, system integrators who assemble complete solutions, and online or catalog resellers that sell through digital channels. In technology and consumer electronics, resellers are common, and marketplaces often host multiple reseller vendors.

Economics: resellers earn margin by marking up purchase prices. They may participate in channel programs offering discounts, rebates, and marketing funds. Responsibilities typically include sales, marketing, order fulfillment, and basic support; larger resellers may provide advanced technical services and manage warranties and returns.

Benefits and risks: Resellers broaden market reach and speed deployment for manufacturers while offering local service to customers. Risks include channel conflict, price erosion, dependency on supplier terms, and exposure to counterfeit or non-compliant goods. Compliance with licenses, warranties, and regulatory requirements is essential in many industries.

Contract framework: Resellers operate under agreements that define pricing rules, territorial rights, IP usage, warranties, returns, and service levels. A well-managed reseller program aligns incentives, preserves brand integrity, and supports consistent customer experiences.