Types of Resellers and Retailers

Resellers and Retailers are both companies that purchase products, store and sell them for the purpose of earning a profit. They may operate online, in brick-and-mortar shops or both. They purchase their products from wholesalers and distributors, and then resellerassociation.com/difference-between-a-retailer-and-reseller sell the items to consumers or businesses. There are many types of resellers, however there are two types of resellers that are Dropshipping and Private Labeling. Private labeling is the process where an individual reseller rebrands a product of an organization by adding their logo, name and packaging. This kind of reselling practice is typical in the technology industry where a computer manufacturer might offer their own hardware and third-party software and accessories.

Another form of reselling is bundling. This is where a reseller bundles similar products from different companies to create an attractive package. For instance, a retailer might buy digital cameras, memory cards and Photoshop Lightroom software from different manufacturers to make kits that help beginners get started with digital photography.

Retailers typically buy in bulk from wholesalers or distributors, and then sell the products at a higher price to customers. They also sell through marketplaces on the internet, such as eBay and Amazon. Retailers provide a range of additional services like customization and technical support. They may also charge additional charges such as handling and shipping fees. Home Depot, for example may charge more than Walmart because it owns its own retail store and is able to handle logistics such as storage and delivery.