Types of Resellers and Retailers

Both retailers and resellers are businesses that purchase items, stock and sell them to earn a profit. They may operate on the internet, in brick and mortar stores or both. They purchase wholesalers and distributors and then sell it to businesses, consumers or consumers. Although many types of resellers are available, there are two major kinds that are Private Labeling and Dropshipping. Private labeling is which allows the reseller to rebrand the product of a manufacturer, adding their own logo, name and packaging. This kind of reselling is common in the technology industry where a computer maker might offer their own hardware, in addition to third-party software and accessories.

Bundling is another form of selling. Bundling occurs when a seller blends similar products from a variety of companies to create a package that is attractive. A reseller, for example, might purchase digital cameras, memory cards and Photoshop Lightroom software made by different manufacturers to create a kit to help novice photographers get started in digital photography.

Typically, retailers purchase products in bulk from wholesalers and distributors and then sell them at higher prices to end users. They also sell through marketplaces on the Internet, such as eBay or Amazon. Retailers offer a variety of value-added services such as customization and technical support. They can also charge additional charges, like resellerassociation.com/what-is-reseller-hosting handling and shipping fees. For instance, Home Depot might charge more than Walmart for barbecue grills because it has an actual store and can handle logistics, such as storage and distribution.

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