Types of Resellers and Retailers

Both Resellers and retailers are businesses that purchase stocks, sell and purchase products to make a profit. They may operate online, in brick and mortar stores, or both. They purchase from wholesalers or distributors, and then sell the items to businesses or customers. There are many types of resellers, however there are two main types which are Dropshipping and Private labeling. Private labeling is the process where a reseller rebrands the product of the manufacturer by adding their logo, name, and packaging. This kind of reselling is common often in the tech industry, where a computer manufacturer may offer both their own hardware as well as third-party software or accessories.

Another type of reselling is bundling. Bundling occurs when a seller blends similar products from a variety of companies to make a package that’s attractive. For example, a reseller could purchase digital cameras, memory cards, and Photoshop Lightroom software from different manufacturers to create an item that will help new users get started with digital photography.

Retailers typically buy in bulk from wholesalers or distributors, and then sell the items at higher prices to consumers. They also sell their products through online marketplaces like eBay and successful collaboration system Amazon. Retailers often offer value-added services such as technical support and personalization. They can also charge additional fees, such as shipping and handle charges. Home Depot, for example may be more expensive than Walmart because it owns its own retail store and can handle logistics like storage and delivery.

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