Resellers and retailers are both businesses that purchase merchandise, store and then sell it to earn making a profit. They can operate on the internet as well as in brick and mortar stores or both. They purchase from wholesalers and distributors, and then sell to businesses or consumers. Although a variety of types of resellers exist there are two main kinds of dropshipping and private labeling. Private labeling is the process where an individual reseller rebrands a product of a manufacturer by adding their name, logo and packaging. This kind of reselling is common in the technology industry where a computer maker might offer their own hardware as well as third-party software and accessories.
Bundling is another form of selling. This is where a reseller bundles similar products from different businesses to create an attractive package. For instance, a seller might buy digital cameras, memory cards and Photoshop Lightroom software from different manufacturers to create an equipment kit that can help new users to get started with digital photography.
Typically, retailers purchase items in large quantities from distributors and wholesalers and then sell them at a higher cost to end users. They also sell through marketplaces on the Internet such as eBay or Amazon. Retailers often offer value-added services like technical support and customization. They can also charge additional fees such as handling and shipping fees. Home Depot, for example, might charge more than Walmart because it owns its own retail store and is able to handle logistics like storage and delivery.
