Resellers and Retailers are two companies that purchase and store products, then sell them to earn profits. They can operate online, in brick-and-mortar stores or both. They purchase from wholesalers and distributors and then sell it to businesses or consumers. There are many kinds of resellers, but there are two major types: Dropshipping and Private Labeling. Private labeling is a practice that allows a reseller to rebrand a manufacturer’s product by adding their own name, logo and packaging. This kind of reselling is common frequently in the tech industry in which a computer manufacturer may offer both their own hardware and third-party software or accessories.
Another type of reselling is bundling. Bundling occurs when a seller combines similar products from various companies to create a bundle that’s attractive. A reseller, for instance, might purchase digital cameras, memory card and Photoshop Lightroom software made by different manufacturers to create a kit designed to assist new users get started in digital photography.
Typically, retailers purchase goods in large quantities from distributors and wholesalers and then sell them at a higher price to consumers. They also sell through marketplaces on the Internet such as eBay or Amazon. Retailers offer a variety of add-value services like customization and technical support. They can also add additional costs, like shipping and handling charges. Home Depot, for example, might charge more than Walmart because it has its own store and handles logistics such as storage and delivery.