Types of Resellers and Retailers

Both retailers and resellers are businesses that purchase items, stock and sell them to earn a profit. They can be found on the internet, through brick-and-mortar stores or both. They purchase from wholesalers and distributors and then resell to businesses or consumers. There are many types of resellers, however there are two major types of dropshipping and private labeling. Private labeling is where the reseller rebrands the product of a manufacturer, adding their own name, logo and packaging. This type of reselling is directory common in the technology industry where a computer maker might offer their own hardware, in addition to third-party software and accessories.

Bundling is an additional form of selling. Bundling is the process where a reseller blends similar products from a variety of companies to create a package that is attractive. A reseller, for instance could purchase digital cameras, memory card and Photoshop Lightroom software made by different manufacturers to create a kit to help novice photographers get started in digital photography.

Retailers typically buy in bulk from wholesalers or distributors, and then sell the goods at a higher price to customers. They also sell through marketplaces on the Internet like eBay or Amazon. Retailers offer a variety of value-added services such as customization and technical support. They may also charge additional fees, such as handling and shipping fees. Home Depot, for example may be more expensive than Walmart because it owns its own store and handles logistics such as storage and delivery.

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