Types of Resellers and Retailers

Both retailers and resellers are businesses that purchase stocks, sell and purchase products to make a profit. They may be on the internet, in brick and mortar stores or both. They purchase from wholesalers and distributors, and then resell it to businesses or consumers. There are a myriad of resellers, but there are two main types which are Dropshipping and Private labeling. Private labeling is which allows the reseller to rebrand an item from a manufacturer by adding their own name, logo and packaging. This type of reselling takes place a lot in the technology sector, where a computer manufacturer might offer both their own hardware and third-party software or accessories.

Another form of reselling is bundling. Bundling is the process where a reseller bundles similar products from different companies to create a bundle that’s attractive. For instance, a seller might buy digital cameras, memory cards and Photoshop Lightroom software from different manufacturers to make a kit that helps new users get started with digital photography.

Retailers usually purchase bulk purchases from distributors or wholesalers and then sell the items at a higher price to consumers. They also sell through online marketplaces, such as eBay and Amazon. Retailers usually offer value-added products such as technical support and personalization. They may also charge additional fees such as handling and shipping fees. For example, Home Depot might charge more than Walmart for a barbecue grill because it has an actual store and can manage logistics, including distribution and storage.

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