Types of Resellers and Retailers
Both Resellers and retailers are businesses that buy products, stock and sell them to earn a profit. They may operate on the internet, through brick-and-mortar stores or both. They buy from wholesalers or distributors, and then sell the items to consumers or businesses. While many types of resellers exist there are two main kinds that are Private Labeling and Dropshipping. Private labeling is the process where an individual reseller rebrands a product of the manufacturer by adding their name, logo and packaging. This type of reselling occurs often in the tech industry, where a computer manufacturer might offer both their own hardware as well as third-party accessories or software.
Another kind of reselling involves bundling. This is when a seller groups together similar products from different companies to make an attractive package. A reseller, for instance may purchase digital cameras, memory card and Photoshop Lightroom software made by different manufacturers to create a kit to help new photographers begin their journey into digital photography.
Typically, retailers purchase products in large quantities from distributors and wholesalers and then sell them at a higher price to end users. They also sell through marketplaces online, like eBay and Amazon. Retailers provide a range of add-value services like customization and technical support. They can also add additional costs, like handling and shipping costs. 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.